Constraints of Small and Medium Scale Enterprises in Nigeria

Abstract

This paper investigated the constraints of Micro small and medium enterprises in Lagos State Nigeria with a view to examining the major factors militating against the performance of the micro-small and medium enterprises subsector to the Lagos State Economy and recommended solutions to make the sub-sector strong and vibrant in order to play the crucial role in Lagos State economy growth and development

A total of 400 SMEs were randomly selected from a cross section of a population of 1600 SMEs spread among all the local governments of Lagos State, Nigeria and covering all forms (partnership sole proprietorship public and private limited and unlimited companies and kinds (Banlema Manufacturing 0.12 Gas services, Educational etc) of business took part in the study.

The results of the study indicate that SMEs have performed below expectation due to a combination of problems which ranges from financial constraint, attitude and habits of SMEs themselves through frequent policy changes and somersault government instability and Environmental related factor. The paper concluded that government should take a practical radical approach and focus on addressing the identified problems the availability of managerial capacity of SMEs in Ibadan, Oyo State, Nigeria.