Nigeria’s vast small business landscape is facing mounting pressure from insecurity, limited access to finance and structural inefficiencies, threatening its role as a key driver of economic growth, experts have warned.

Speaking at the 1st International Conference on Entrepreneurial and Managerial Innovation for Sustainable Socio-Economic Development (ICEMISD 2026) hosted by Bingham University, Karu, stakeholders said the country’s estimated 40 million small and medium-sized enterprises (SMEs) are increasingly constrained by a hostile operating environment when compared with their counterparts across the world.

Managing Director of Executive Guards Ltd, Dr Edinen Usoroh, said insecurity, ranging from terrorism and kidnapping to cybercrime and political instability, has heightened business risks, increased costs, and discouraged investment.

“Security is not just a condition for peace; it is a fundamental determinant of business success.”
Usoroh, however, noted that innovation in sectors such as fintech, agritech and renewable energy could help counter these challenges by engaging youth and reducing crime, while urging stronger institutional security and policy stability,” he said.

Speaking on financing, Managing Director of Dabo Group, Dr Esther Williams, who spoke along with the founder of the organisation, Williams Dabo, stressed that the government must aid access to finance, stating that stringent conditions for single-digit loans are killing businesses.

She said commercial banks prioritise scalable and viable ventures, leaving many startups excluded, while bureaucratic hurdles limit access to development finance institutions such as the Bank of Industry.

Williams advocated reforms to simplify loan conditions, alongside alternative funding channels including angel investors, crowdfunding and partnerships.

She also stressed the importance of human capital development and access to modern machinery to boost competitiveness.

In his keynote, Dean, Department of Management and Entrepreneurship, Emmanuel University, United States, Prof. Edward Perekebina Agbai, called for a fundamental rethink of innovation models.

He outlined a four-pillar framework centred on purpose-driven value creation, systems thinking, inclusive governance and learning ecosystems.

Agbai said businesses must move beyond profit maximisation to deliver measurable social and environmental impact, warning that technological disruption, climate change and inequality require more than incremental reforms.

He added that ethical governance and transparency are essential to rebuilding investor confidence.

Also contributing, Professor Helen Afang Andow of Kaduna State University stressed the need for integrated innovation, noting that entrepreneurial energy without managerial discipline is unsustainable. She called for coordinated policies linking finance, education and institutions to drive resilient growth.

On the role of education, Dr Uduak Bassey Mbang of Arthur Jarvis University urged universities to develop “entrepreneurial intelligence” to reduce graduate unemployment. Mbang proposed a model combining financial, leadership, technological and soft skills, alongside stronger industry partnerships and practical training.

Vice-Chancellor of Bingham University, Prof. Haruna Ayuba, said traditional “business-as-usual” approaches are no longer sufficient, calling for innovation driven by emerging technologies such as artificial intelligence and renewable energy.