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STRUCTURE AND CONSTRAINTS OF MICRO, SMALL AND MEDIUM SCALE ENTERPRISES (MSMEs) IN NIGERIA

Evbuomwan, Grace O. and Ikpefan, Ochei Ailemen and Okoye, Lawrence U. (2016) STRUCTURE AND CONSTRAINTS OF MICRO, SMALL AND MEDIUM SCALE ENTERPRISES (MSMEs) IN NIGERIA. LASU Journal of Accounting and Finance, 2 (1). pp. 66-78.

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Abstract

In both developed and developing economies, there are evidences of the immense contributions of MSMEs to economic growth and development. Small enterprises are known to adapt with greater ease under difficult and changing circumstances because they are typically low in capital intensity and allow product lines and inputs to be changed at relatively low cost. With the collapse of the world oil market and the ensuing economic downturn in Nigeria, refocusing attention on the MSMEs will help reduce unemployment, create wealth and alleviate poverty. Hence, this paper set out to profile the structure of MSMEs in Nigeria, examine their firm characteristics, financing and operations and constraints with a view to proffering suggestions on how to use MSMEs as a strategy for economic development in Nigeria in the face of the current economic downturn. Results of the survey conducted indicated that MSMEs dominate Nigeria’s economic landscape as 53.5 per cent of the respondents were in the micro-enterprise category, 29.6 per cent in the smallscale category, 14.1 per cent in the medium-enterprise category and only 2.8 per cent in the large scale category. Capacity utilization rate was highest for MSMEs in the agriculture/agro-processing sector at 70.2 per-cent compared with 55.4 per cent for those in the manufacturing sector. Inadequate fund/working capital was the most mentioned problem by the MSMEs. It was therefore, recommended that credit programmes that will take cognisance of the peculiarities of MSMEs in Nigeria be intensified so as to increase their access to funds in view of their dominance and potential contribution to the growth of the economy

Item Type: Article
Uncontrolled Keywords: Micro, Small and Medium Enterprises, Structure, Constraints, Economic Growth.
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HG Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Hannah Akinwumi
Date Deposited: 07 Feb 2018 10:38
Last Modified: 07 Feb 2018 10:38
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/10171

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