Issues, challenges and prospects of small and medium scale enterprises (SMEs) in Africa

Abstract

The purpose of this research is to discuss Issues, Challenges and Prospects of Small and Medium Scale Enterprises (SME) in Lagos, Nigeria. This came about due to the high rate of unemployment in the society and the poor performance of SMEs in terms of employment generation. While the research questions address the extent to which poor financing, inadequate social infrastructure, lack of managerial skills and multiple taxation constitute major challenges in the performance of SMEs in Nigeria, it assumes that government intervention through the provision of financial assistance, social infrastructures and favorable taxation policies will reverse this trend.

This research will replicate the model used by Agwu M.O and Emeti C.I in a research conducted in Port-Harcourt city, the research which also tends to investigate a similar topic - Issues, Challenges and Prospects of SMEs in the Port-Harcourt city. A descriptive research approach using 115 randomly selected registered operators of SMEs in Lagos, Nigeria will used in this particular research.Results from the data analysis indicated that poor financing, inadequate social infrastructure, lack of managerial skills and multiple taxation were major challenges confronting SMEs in Lagos - Nigeria, thus Agwu M.O and C.I Emeti in their Journal titled European Journal of Sustainable Development (2014), 3, 1, 101-114 recommended: provision of soft loans to SME operators, government guaranteeing of long-term loans to SME operators, establishment of SME funding agency, public/private sector partnership in infrastructural provision /development, capacity building for SME operators and provision of tax incentives for SME operators.