Small and Medium Scale Enterprises, the Key to Building a Developed Nigeria- cont

There is absolutely no doubt that small and medium scale Enterprises contribute tremendously to the nation’s economic development. Harnessing the economic potentials of SMEs in Nigeria is still a mirage since several policies aimed at small and medium scale Enterprises development did not stand the test of time due to poor implementation, erratic financing of schemes initiate by the government and other administrative bottle-necks. These have made it difficult to existing and prospective SMEs operators to have easy access to funds set aside for SMEs development. Bank which are suppose to complement and implement government policies also clamouring for huge collateral which prospective poor borrowers usually do not have even borrowers who could afford to provide benefiting collateral are further discouraged by continuous increase in interest rate which make borrowers vulnerable to the risk of continuous indebtedness to rich lenders. The recent development by committee of bankers in Nigeria (SMIEIS) remains a vibrant scheme if the objective for which it was established is implemented to the letter. Of course SMEs will never thrive if government and financial institutions continue to pay lip services to schemes initiated by them. Base on this the following recommendations are hereby put forward. 1. Government and financial institution should develop a holistic approach to schemes initiated by them. 2. The Central Bank of Nigeria (CBN) and other financial institutions should embark on extensive sensitization of entrepreneurs on the operations of the banks. 3. Interest which deters people with genuine business ideas should be reduced to a bearable level so as to make borrowing cheaper. 4. All administrative bottle necks which make funds inaccessible to small and medium scale Enterprises operators should be mitigated. 5. The Central Bank of Nigeria should as a matter of urgency compel all other commercial banks to adhere strictly to banking policies and regulations. 6. Government should engage professionally in the formulation of policies that will stand the test of time. 7. Government should develop a lasting solution to the state of infrastructural deterioration especially electricity. 8. The security situation of the country needs to be improved so as to make business doable in the country. Arabian Journal of Business and Management Review (OMAN Chapter) Vol. 1, No.7; February 2012 28 9. Policies initiated by the government should be funded efficiently. 10. Policies which are aimed at rural development should top the lists of policies aimed at developing the already or semi-developed urban centers so as to reduce rural-urban migration. 11. Prospective business operators should conduct extensive feasibility studies to evaluate the viability of any proposed business to avoid investment in unprofitable ventures. 12. Finally, for entrepreneurs that may find it difficult to choose a line of business, the following have been recommended. Meat Retailing, Restaurant(“Buka”) Service, Growing vegetable during dry season, Backyard Poultry Raising, Operating a Nursery for Children, Home Laundry Service, Arranging Foods for Parties, Raising of Pets, Charcoal Making, Sing Writing, Writing of Book for Publication, Portrait of Flowers, Landscaping, Making Baskets and Cages from Palm Fronds, Making Brooms, Sand Blocks/Cocktail Sticks, Selling Food at Building Sites, Home Made Bread Cakes, Refuse Packing, Car Washing, Collecting Research Materials, Speech Writing, Editorial Work, Driving School, Clearing and Forwarding, Operating Grating and Grinding Machines, Coaching Classes, Renting Generator Sets, Operating a Barbing Saloon, Hair Weaving, Telephone Operation, Running a Catering Institute, Tailoring, Bricklaying, Plumbing, Rearing of Day Old Chicks to Three or Four Weeks, Weaving Traditional Clothes, GSM Business: Selling Recharge Cards and phone accessories, Palm Kernel oil Production, Soap Production, Aquaculture/fish farming, Chalk making, Nylon production, Concrete block production, Garri production/Cassava chips, Ice block production, Hair/ Body cream production, Big time rental services, professional practices etc