In a globe hegemonized by corporate giants, small businesses often struggle to get attention. Small businesses in Nigeria are quietly driving economic growth and development of our economy, from the bustling streets of Benin City to the rural villages, small businesses are the backbone of the Nigerian economy, providing employment, goods, and services to the people.
In a recent report by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), there are over 37 million small businesses in Nigeria, employing over 60 million people and contributing over 50 percent to the country’s GDP.
Despite their immense potential, these businesses face a multitude of challenges, like limited access to finance, inadequate infrastructure, access to reliable electricity, water and internet connectivity which makes it difficult for small businesses to operate efficiently and effectively.
The Nigerian government has established several initiatives aimed at providing financing to small businesses. The Bank of Industry (BOI) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) offer loans and grants to small businesses, while the Lagos State Employment Trust Fund (LSETF) provides financing to small businesses in Lagos State.
As the Nigerian government continues to implement policies aimed at supporting small businesses, the sector is expected to continue to grow and thrive. Small businesses are the engine of economic growth in Nigeria, and with the right support, they can drive economic development and prosperity for millions of people.