The contribution of the MSMEs to the economic growth of a nation is well recognised. In developed economies, they are used as an instrument for solving unemployment problems. Same is also thought of their contribution to employment generation in developing countries, including nurturing entrepreneurship.
Because MSMEs have a propensity to employ more labour-intensive production processes than large enterprises, they contribute significantly to the provision of productive employment opportunities, the generation of income and, eventually, the reduction of poverty.
According to the United Nations Industrial Development Organisation (UNIDO), for developing countries, integration into the global economy through economic liberalisation and deregulation, is seen as the paramount way to triumph over poverty and inequality. Important to this process is the development of an animated private sector, in which SMEs can play a central role.
Statistics show that in industrialised countries, MSMEs are major contributors to private sector employment. Empirical studies also found out that SMEs contribute to over 55 percent of gross domestic product (GDP) and over 65 percent of total employment in high income countries.
A recent data undertaken by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the National Bureau of Statistics (NBS) put micro, small and medium businesses across Nigeria in the region of 17.3 million with total employment in the sector put at about 32 million, contributing about 45 percent to the GDP.
“We have a market with 167 million people... if only half of the 17.3 million SMEs create a job each every year, that is about 8 million. If a quarter of them create a job each every year, that is about a 4 million jobs,’’ Olusegun Aganga, minister of industry, trade and investment, was quoted as saying in 2012, during the Lagos edition of Market Access Nigeria - an initiative by Enterprise Development Centre (EDC) and Etisalat Nigeria, in collaboration with the Ministry of Trade and Investment and the SMEDAN.
The only hope for our youths is to get them gainfully employed , which will definitely stem the tide of insecurity and kidnapping in our nation . Through the MSMES , a new generation of leaders can be developed which also will impact on the GDP of our economy .