Small Business in Sub-Saharan Africa: Major Constraints in [Nigeria]
Small Business in Sub-Saharan Africa: Major Constraints in [Nigeria]
Introduction
The Federal Republic of Nigeria has an area of 923,768.00 sq kilometres and completely within the tropical zone (About.com 2005). Nigeria has a population which is estimated over 154 million. It is a 12th largest petroleum product producer in the world. Due to the surge in international oil prices during 2007-08, Nigeria administrated an annual GDP of US$352.3 billion and has the largest GDP compare to all countries in West Africa. The GDP per capita is US $2,400 (Economy Watch n. d.).
In Nigeria, the petroleum industry is central to the country economic profile. They are overly dependent on the petroleum sector. Besides the petroleum sector, Nigeria economy is highly amorphous and lacks basic infrastructure.
Small businesses are important in sustained a country economic growth. However, there are still lots of constraints such as poor management, corruption, weak infrastructure, paucity of second generation, lack of capital and so on need to be tackled.
This report will deeply analyse the small business environment of Nigeria. Firstly, this report will state the measures of Nigeria’s government in promoting small business development. Secondly, the essay will look into the limitations that blocking the way of Nigeria small business growth. Finally, this report will state some recommendations about how to grow Nigeria small business.
1. The environment of small business in Nigeria
The need for small business growth in Nigeria is beyond question, small business play an important role in a country economic growth. They provide job opportunities, enhance regional economic balance through industrial dispersal and generally promote effective resource utilization considered critical to engineering economic development and growth. However, a lot of obstacles are testing the survival of small business in Nigeria.
1.1 Nigeria’s
Introduction
The Federal Republic of Nigeria has an area of 923,768.00 sq kilometres and completely within the tropical zone (About.com 2005). Nigeria has a population which is estimated over 154 million. It is a 12th largest petroleum product producer in the world. Due to the surge in international oil prices during 2007-08, Nigeria administrated an annual GDP of US$352.3 billion and has the largest GDP compare to all countries in West Africa. The GDP per capita is US $2,400 (Economy Watch n. d.).
In Nigeria, the petroleum industry is central to the country economic profile. They are overly dependent on the petroleum sector. Besides the petroleum sector, Nigeria economy is highly amorphous and lacks basic infrastructure.
Small businesses are important in sustained a country economic growth. However, there are still lots of constraints such as poor management, corruption, weak infrastructure, paucity of second generation, lack of capital and so on need to be tackled.
This report will deeply analyse the small business environment of Nigeria. Firstly, this report will state the measures of Nigeria’s government in promoting small business development. Secondly, the essay will look into the limitations that blocking the way of Nigeria small business growth. Finally, this report will state some recommendations about how to grow Nigeria small business.
1. The environment of small business in Nigeria
The need for small business growth in Nigeria is beyond question, small business play an important role in a country economic growth. They provide job opportunities, enhance regional economic balance through industrial dispersal and generally promote effective resource utilization considered critical to engineering economic development and growth. However, a lot of obstacles are testing the survival of small business in Nigeria.
1.1 Nigeria’s
References: About.com. 2010. Nigeria. http://geography.about.com/library/cia/blcnigeria.htm (accessed 10 April,2010) Economy Watch Grameen Bank. 2010. Introduction. http://www.grameen-info.org/index.php?option=com_content&task=view&id=16&Itemid=112 (accessed 10 April, 2010) International Monetary Fund Journal of Perinatology. 2005. http://www.nature.com/jp/journal/v25/n11/full/7211375a.html (accessed 8 April, 2010) Sam, M Sund, L. 2002. Small Business Economics. 19th Edition. Netherlands: Kluwer Academic.