Improving the Institutional Environment for SME Success in Nigeria

Abstract

The principal purpose of this essay is to examine the critical barriers militating against the growth of SMEs in Nigeria. Using purely descriptive approach, we examined the new perception of SMEs and their place within the neoclassical literature. Within the Nigerian context, we identified policy inconsistency, unstable macroeconomic, poor or non-existent infrastructure, bureaucratic bottlenecks, lack of access to short and long term funds, inadequate business support services and reliable databank for planning as serious problems confronting SMEs. Government policies must therefore address these serious problems, particularly creating a legal environment that encourages private sector participation in the provision of infrastructure required for the SMEs to strive.