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Relevance of Small and Medium Enterprises in the Nigerian Economy: A Benchmarking Analysis

Author

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  • Okwu Andy Titus
  • Obiakor Rowland Tochukwu
  • Obiwuru Timothy Chidi

Abstract

Obviously, the relevance of SMEs in the economy cannot be overemphasized and this has necessitated policy reforms and responses in many countries. This paper employed descriptive approach to assess the relevance of SMEs in state and national economies in Nigeria. The objective was to determine the extent of relevance of the SME sector in the economy of Nigeria. Some benchmarking assessment revealed that the SME sector in Nigeria has not been very relevant in the areas of enterprise creation, employment, contribution to GDP and export earnings as well as global competitiveness. The paper therefore concluded that more needs to be done by the government, the SMEs and other stakeholders to enhance relevance of the sector in the Nigerian economy. consequently, it was recommended, amongst others, that the government should formulate and implement policies that foster industry cluster strategy, stimulate local demand for products of the SMEs by making it mandatory for the appliances and equipment needs of its institutions and agencies be 80% of products of SMEs in Nigeria amongst others.

Suggested Citation

  • Okwu Andy Titus & Obiakor Rowland Tochukwu & Obiwuru Timothy Chidi, 2013. "Relevance of Small and Medium Enterprises in the Nigerian Economy: A Benchmarking Analysis," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 1(5), pages 167-177.
    • Handle: RePEc:rss:jnljms:v1i5p4
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    References listed on IDEAS

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    Cited by:

    1. Ganiyu Biodun Bakare, 2015. "Manufacturing SMEs and Macroeconomic Indicators: Empirical Evidence from Nigeria," Quarterly Journal of Business Studies, Research Academy of Social Sciences, vol. 1(1), pages 45-54.

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