Ahead of the Micro, Small and Medium sized Enterprises (MSMEs) Day, the need for small businesses to take advantage of digital platforms, and social commerce solutions to streamline operations, improve turnaround time, and have access to global market opportunities has been emphasised.
With technology, most businesses have found alternative ways to grow their businesses innovatively.
These shifts have empowered MSMEs to compete locally and build global relevance in a dynamic market.
Speaking ahead of the day on June 27, with the theme ‘Enhancing the role of MSMEs as drivers of sustainable growth and innovation’, an entrepreneurial firm’s Team Lead, Public Relations and Marketing, Shopnest Africa, Maria Egunjobi, noted that the enterprises drive innovation, provide employment and play a crucial role in achieving sustainable development.
Noting that technology plays an active role in sustaining the Nigerian economy, she said MSMEs must tap into opportunities attached to solution-driven technology that aims to increase sales and impact their quality of life.
She said that with the current level of economic hardship in the country, communities that focus on helping businesses grow are necessary.
According to her, belonging to a community of business owners will provide online vendors with a sense of belonging and a chance to receive information that benefits and grants access to global market opportunities.
Quoting the World Bank’s projection that an estimated 600 million jobs would be required to meet a growing global workforce by 2030, Egunjobi maintained that the projection makes MSME development a high priority for many governments around the world.
Noting that most leading economies worldwide rely on MSMEs to boost economic growth, she said MSMEs play a notable role in keeping societies together through job creation, thereby alleviating poverty among women and providing a young, energetic population with the resources required to thrive and compete globally.
She stated that over the past few years in Nigeria, there has been a decline in the number of MSMEs.
Giving statistics, the e-commerce expert quoted the 2024 Economic Outlook of the Nigeria Economic Summit Group (NESG), which shows that between 2023 and 2024, multinational divestments and business closures led to about N94 trillion economic losses with 30 per cent of Nigeria’s 24 million registered MSMEs shut down during the period.
Egunjobi said the closure and losses underscore the vulnerability of the small and micro businesses within the economy.
She added that research indicated that electricity was responsible for the highest cost of operations for small businesses, followed by rent and the cost of capital.
Stating that in 2025, the number has tripled due to aggressive inflation, she said it was obvious that businesses are no longer thriving but merely surviving.
“Deeply reflecting on this, one can only wonder how many businesses will be left standing after the current administration. Yet, most businesses are hopeful, barely hanging in there, but how long can MSMEs hang on before despair creeps in? Among the major challenges MSMEs experience are a lack of funds, rising operational costs, infrastructure deficits, a lack of skilled workforce, poor market access, unstable government policies and economic instability.
“These challenges are not only for the government to resolve; private organisations and well-meaning Nigerians must partner with the public sector to identify and initiate solutions that are sustainable and can be replicated across the different tiers of government. If properly designed and monitored, innovation among MSMEs will not be reserved for businesses in Urban centres; even small business owners in remote locations will enjoy the dividends of innovation,” she said.
