Financial constraints impairing growth of small businesses in Nigeria — FATE Foundation
Lack of financial support has been described as major impediments to growth of small-scale businesses in Nigeria.
Latest report by FATE Foundation on business performance in Nigeria, revealed that limited access to finance, inadequate infrastructure, poor financial management and government policies, poor capacity and insecurity are leading collapse of many small scale businesses in the country.
The report obtained by The Guardian, described entrepreneurship as “fairly strong” in Nigeria, and insisted that government must intensify efforts to improve the operating environment for young businesses by addressing core traditional and non-traditional issues.
It stated: “Most businesses set up by entrepreneurs have been successful, with 66 per cent of respondents affirming that the businesses they have set up have been successful as against 34 per cent that said their businesses failed.”
The Executive Director of FATE Foundation, Adenike Adeyemi, said entrepreneurship remained a powerful force and an important influencer for driving innovation, productivity, job creation and economic growth.
“Nigeria’s entrepreneurship prowess has for a long time been clearly evident. FATE Foundation’s inception, 21 years ago, was on the basis that entrepreneurship would be a key driver for boosting productivity, job creation and economic growth. Since then, that theory has continuously been validated with Nigerian entrepreneurs delivering on innovation, promoting inclusion, leading to positive socio-economic impact and economic growth,” she stated.
The report ranked Abia state the highest with a score of 0.8 in entrepreneurship, closely followed by Imo (0.79) and Delta (0.77).
Oyo State on the other hand trails other states, showing the lowest score of 0.51. The bottom five states include Zamfara, Niger, Oyo, Kebbi and Adamawa States.