Why Many MSMEs Fail In Nigeria – Foundation

The Eminent Emerging Entrepreneurs Foundation says, many Small and Medium Scales Enterprises (MSMEs) fail, not for lack of funds, but because of unfavourable regulatory environment.

Mr Eberechi Marcus, Chief Executive Officer (CEO) of the foundation, a Non Governmental Organisation (NGO)
stated this in an interview with the News Agency of Nigeria (NAN) in Abuja.

According to him, many MSMEs have the material and financial resources, but they fail because of poor enabling environment and failure to understand government policies about the sector.

Marcus equally identified harsh economic environment occasioned by inflation, currency devaluation, and economic instability as reason for MSMEs failure.

He said the factor increased operating costs and reduced consumer purchasing power.

He, therefore underscored the need for MSMEs investors to study and understand government economic policies regarding the sector they are investing in, before venturing  therein.

“Many people venture into businesses without understanding the roles of the existing policies and the policy makers do not even understand the challenges of MSME owners.

“For instance, most persons go around in the city as tax force operators and all they need from those tax payers is to collect their tax.

“How the business operators are going to survive, they don’t know,” he said.

The CEO also underscored  the need for a development of policy frameworks in creating decent jobs  that engenders freedom, equity, security, and human dignity.

“In Nigeria we must focus on issues about decent job creation, design and implement policies around decent job creation.

“Such focus will foster talks about policies that enhances strategic positioning of programmes by governments or corporate organisations centered on social responsibility and efforts to create decent jobs for young Nigerians,” he said.

Marcus disclosed that his foundation in collaboration with Thelma Foundation and National Human Rights Commission (NHRC) is organising a national dialogue on decent job creation as well as a launch of the campaign on decent job creation as a society right.

He said the event scheduled for July 23, in Abuja is themed, “From vulnerability to opportunity strengthening frameworks and strategies for decent job creation” was organised by the Foundation.

Marcus stressed the need for stakeholders in youth development sector to play critical role to sustain legal framework for youth employment in rural and urban settlement in the country.

“We are leveraging several platforms to further amplify conversation aimed at encouraging stakeholders to play key role in rural areas.

“We will begin to leverage available platforms to communicate to young people the opportunities that already exists in the rural areas,” he said.

He said the campaign would open other people’s understanding to the basic things that someone in MSME needs to know.