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Small and Medium Scale Enterprise

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Small and Medium Scale Enterprise
SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA: THE PROBLEMS AND PROSPECTS.
By Abiodun Fatai1 Department of Political Science, Faculty of Social Sciences Lagos State University, Ojo, Lagos Nigeria.

ABSTRACT
Small and medium scale enterprises have long believed to be catalysts for economic growth and national development both in developed and developing countries. In Nigeria where private sector is not well developed SME is assumed to play the role of employment generation, facilitator of economic recovery and national development. The paper examined small and medium scale enterprises in Nigeria and in relation to those challenges which affects SMEs from developing capacity to realizing its full potentials as well the prospect for improvement and development for employment generation, economic growth and national development. It is suggested therefore that invigorating SMEs with strengthened commitment to economic reform would offer a turning point in facilitating the recovery of Nigeria economy and national development.

1

Fatai teaches in the Dept of Political Science, Lagos State University Lagos Nigeria, he is also a PhD student in University of Ibadan, Ibadan Nigeria.
1

INTRODUCTION The performance and effectiveness of small and medium scale enterprises as an instrument of economic growth and development in Nigeria has long been under scrutiny. This intense scrutiny has been against the backdrop of the low performance and inefficiency that characterized small and medium scale enterprises particularly in assessing its role on economic growth and development. Despite government institutional and policies support to enhancing the capacity of small and medium scale enterprises, small and medium scale enterprises has fallen short of expectations. This has generated serious concern and sceptism on whether SME can bring about economic growth and national developments in Nigeria. The concern is even more disturbing when comparing SME in Nigeria with other


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