Contribution of Small and Medium Enterprises Development Agency Of Nigeria

Description

– Contribution of Small and Medium Enterprises Development Agency Of Nigeria –

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Abstract

Small and Medium Enterprises Development Agency of Nigeria(SMEDAN) was established to perform certain functions which are taken as the objectives which include promoting and facilitating development programmes,

instruments and support services to accelerate the development and modernization of micro small medium enterprises, linking MSMEs to internal and external sources of finance, and providing access to industrial infrastructure, such as layouts, incubators and industrial parks among others.

This study seeks to investigate why SMEDAN has not been able to effectively carry out these functions. The main objective of this study is to examine the extent to which SMEDAN has been able to contribute to the growth and development of the MSMEs sector in Kano and Kaduna States through the performance of its functions.

Sub objectives include to examine the effect of SMEDAN’s development programmes and support services on the growth and development of MSMEs entrepreneurs in Kano and Kaduna States ;

the extent to which SMEDAN has been able to link MSMEs entrepreneurs in Kaduna and Kano States to internal and external sources of finance,

Introduction

1.1 Background of the Study

Micro, Small and Medium Enterprises (MSMEs) occupy a central place in the economic growth of nations. MSMEs have a fundamental role to play in the development of an economy and this cannot be over emphasized.

MSMEs serve as training arena for local skills and entrepreneurs, and could become channels for mobilizing local savings, ensuring a more equitable distribution of income and reducing the migration of manpower from the rural to urban areas.

The reduction of rural-urban migration is desirable and where the MSMEs are given the required support, this will lead to development of the rural areas in the long-run. The MSMEs provide employment opportunities, create wealth and lead to poverty reduction in the long run.

According to the World Business Council for Sustainable Development ( WBCSD, 2004 : 2) in Organization for Economic Cooperation and Development (OECD) economies, Small Medium Enterprises and Micro enterprises account for over 95% of firms , 60-70% of employment, 55% of GDP and generate the lion share of new jobs.

In developing countries, more than 90% of all firms outside the agricultural sector are SMEs and microenterprises, generating a significant portion of Gross Domestic Product (GDP).

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