Experts drawn from different sectors of the economy have expressed concern over the rapid demise of Micro, Small and Medium-sized Enterprises (MSMEs), adding that major challenges in the country’s business environment have prevented many small businesses from hitting the five-year mark.
  
Speaking at the Lagos Chamber of Commerce and Industry (LCCI), Small and Medium Enterprises Group (SMEG) Webinar with the theme: “SMEs challenges and sustainability strategies in an inflationary economy,” LCCI’s president, Dr. Michael Olawale-Cole, said in this time of unprecedented economic challenges, it is essential to proffer solutions to navigate the crushing and demeaning effects of inflation and secure the future of MSMEs in Nigeria.
     
He said globally, MSMEs are major drivers of innovation and economic growth but in developing countries like Nigeria, small businesses are experiencing early-stage business failure due to lack of business sustainability strategies. He said they intend to explore business sustainability strategies that SME business owners in Nigeria should adopt to stay in business beyond five years in the face of the current inflationary pressure on their activities.
   
“Nigeria is home to over 36.9 million SMEs, comprising 96.7 per cent of all businesses in Nigeria. 67 per cent are youth-owned. SMEs contribute over 45 per cent to the country’s Gross Domestic Product (GDP), with 98.8 per cent of them in the micro cadre. They account for nearly 90 per cent of the jobs in the country. Therefore, as SMEs grow and sustain themselves in business, they create more jobs, which will lead to prosperity for more, and less insecurity across the country,” he stated.
    
Olawale-Cole regretted that despite being the backbone of the country’s economy, contributing significantly to economic growth, job creation and poverty reduction, MSMEs still battle limited access to finance, inadequate infrastructure, high cost of inputs, a difficult business environment with inflation being of pressing concern. 
   
He said: “The relentless rise in prices of goods and services has had a profound impact on SMEs, affecting their operations, profitability, and overall sustainability. Despite the challenges, Nigerian SMEs are resilient and resourceful. With the right strategies and support, they can continue to drive economic growth and create jobs.”
   
Speaking on how technology can be deployed for SME growth in a challenging economy, Oluseun Adegoke of Consultingbord Limited said SMEs should create a strong online presence, embrace e-commerce, cloud computing and digital marketing. He added that data analytics is key to knowing how your business is doing and said remote working and collaboration should be embraced as well.
    
Partner & West Africa Tax Leader, Deloitte, Yomi Olugbenro, who spoke on the current taxation regime and its impact on businesses, said multiple revenue agencies across the three tiers of government and multiplicity of taxes as well as non-state actors ‘taxing’ businesses illegally all deter the growth of SMEs. He added that the challenging operating environment, low profit margins, complex and unfriendly rules and broken social trust contribute to businesses’ non-compliance with tax and these issues must be addressed in order to encourage SMEs growth and survival.