the under 17 world cup just started. nigeria has just conceded 2 goals.
immediately after the second oal, nigerians started leaving the already half empty field. that makes me just pissed off. i mean we are suppossed to be patriotic citizens. i remember with fondness the way the koreans came out to watch all their matches and the way they painted the stadia red whenever the red devils were playing. nigeria actually lost the best supporter's club title to the koreans at that tournament and instead of we trying to reclaim it what do we get-a lackadastical attitude.
God help us.
Saturday, October 24, 2009
Focus of SMRs in Nigeria
FOCUS ON SMEs IN NIGERIA
Nigeria has always been a strategic country in Africa with diverse economic and socio-political powers. However, a history of prolonged military rule left the civil institutions in ruins, economy grossly mismanaged, and individual values completely misplaced. After a successful transition to civilian rule in 1999, the political terrain became stable allowing for foreign investments in Nigeia. As part of the strategy to revive the economy, some sectors were identified as potential vehicles for rapid growth. One of such is the development and encouragement of SMEs. The SMIEIS was set up to pool resources for the purpose of SME funding. The body requires all banks in the country to set aside 10% of their profit before tax for equity investment in the scheme.
The focus on SMEs date back to the second national development plan (1970 – 1975) during which the small scale industries scheme was initiated. This was a backdrop of government recognition and support for the sector in terms of funding.
In 1980, government came up with guidelines to investors in the area of SME by reaffirming its position thus,” In furtherance of the government’s determination to open up the vast rural areas of the country and create remunerative employment opportunities there, small scale industries shall receive special encouragement...financing small scale enterprises, particularly those with technical support through the extension services of the Industrial Development Centers (IDCs) are matters to which government will devote great attention”
The policy of government on SMEs has continued to receive periodical reviews based on demands and the prevailing economic situations. In 1988, the industrial policy was reviewed and updated to achieve accelerated pace of development.
The new refocus and strategy in favour of SME development led the Obasanjo government to review its framework in 2000. In concrete demonstration of the policy on SME development, the government has among others, set about taking the following steps:
I. The establishment of the Bank of Industry (BOI), merging together the NIDB, National Bank for Commerce and Industry and NERFUND.
II. Establishment of the SMEDAN
III. Establishment of the National Guarantee scheme for SMEs
IV. Establishment of SMIEIS in 2001 by the Bankers’ Committee which was in response to government overtures that the banks should device ways to fund the development of SMEs
2.4 THE SMALL AND MEDIUM ENTERPRISES DEVELOPEMENT AGENCY OF NIGERIA
The SMEDAN was created by the SMEDAN Act of2003 to promote the development of SME sector of the Nigerian economy and Mrs Modupe Adelaja was appointed the Head. The agency positions itself as a ‘one-stop’ center for Micro, Small and Medium enterprises development. Micro enterprises are included in the clientele of the agency since they form the bedrock of SMEs.
According to Modupe Adelaja, a well developed MSMEs sector has proven yo be the most veritable channel to combat poverty. The establishment of SMEDAN is therefore justified by the need to trigger the development of Nigeria’s SMEs in a structured and efficient manner.
Functions of SMEDAN
The functions of SMEDAN as contained in the act can be summarised as follows
· Stimulating, monitoring and coordinating the development of the SME sector.
· Initiating and articulating policy ideas for SMEs.
· Promoting and facilitating development programmes, instruments and support services to accelerate the development and modernisation of SME operations.
· Serving as a vanguard for rural industrialisation, poverty reduction, job creation and enhanced sustainable livelihoods.
· Linking SMEs to internal and external sources of finance, appropriate technology, technical skills as well as larger enterprises.
· Promoting information and providing access to industrial infrastructure such as layouts, incubators and industrial parks.
· Intermediating between SMEs and the government.
· Working in concert with other institutions, both in the private and public sectors, to create a good enabling environment of business in general and SME activities in particular.
2.5 CHARACTERISTICS OF SMEs
Ogunleye (2004) outlined the following characteristics of SMEs.
I. Ownership and management are held by an individual or group, hence decisions are often subjective
II. They require small capital for establishment, regardless of industry and country where they are based. However, they usually Have difficulties attracting funds for expansion.
III. Proprietors hardly separate private funds from company funds. This leads to inefficiency and performance.
IV. Mist SMEs operate with labour intensive technologies. They find it difficult to shift from one product line to something radically difficult.
V. The rate of business mortality is high due to the reasons of low capital outlay, inadequate market information, lack of appropriate technology, etc.
2.6 BENEFITS AND IMPORTANCE OF SMEs
Many economies, whether developed or developing, have come to realise the importance and values of small business. They are seen to be characterised by dynamism, witty innovations, efficiency and their small size allows for faster decision making process. Their benefits to any economy include the following:
I. Creation of jobs at relatively capital cost especially in the fast growing service sector.
II. Provide a vehicle for reducing income disparities.
III. Develop a pool of skilled and semi skilled workers as a basis for future industrial expansion.
IV. Improve forward and backward linkages between economically, socially and geographically diverse sectors of the economy.
V. Provide opportunities for developing and adapting appropriate technological approaches.
VI. Offer excellent breeding ground for entrepreneurial and managerial talent, the critical shortage of which is often a great handicap to economic development.
Nigeria has always been a strategic country in Africa with diverse economic and socio-political powers. However, a history of prolonged military rule left the civil institutions in ruins, economy grossly mismanaged, and individual values completely misplaced. After a successful transition to civilian rule in 1999, the political terrain became stable allowing for foreign investments in Nigeia. As part of the strategy to revive the economy, some sectors were identified as potential vehicles for rapid growth. One of such is the development and encouragement of SMEs. The SMIEIS was set up to pool resources for the purpose of SME funding. The body requires all banks in the country to set aside 10% of their profit before tax for equity investment in the scheme.
The focus on SMEs date back to the second national development plan (1970 – 1975) during which the small scale industries scheme was initiated. This was a backdrop of government recognition and support for the sector in terms of funding.
In 1980, government came up with guidelines to investors in the area of SME by reaffirming its position thus,” In furtherance of the government’s determination to open up the vast rural areas of the country and create remunerative employment opportunities there, small scale industries shall receive special encouragement...financing small scale enterprises, particularly those with technical support through the extension services of the Industrial Development Centers (IDCs) are matters to which government will devote great attention”
The policy of government on SMEs has continued to receive periodical reviews based on demands and the prevailing economic situations. In 1988, the industrial policy was reviewed and updated to achieve accelerated pace of development.
The new refocus and strategy in favour of SME development led the Obasanjo government to review its framework in 2000. In concrete demonstration of the policy on SME development, the government has among others, set about taking the following steps:
I. The establishment of the Bank of Industry (BOI), merging together the NIDB, National Bank for Commerce and Industry and NERFUND.
II. Establishment of the SMEDAN
III. Establishment of the National Guarantee scheme for SMEs
IV. Establishment of SMIEIS in 2001 by the Bankers’ Committee which was in response to government overtures that the banks should device ways to fund the development of SMEs
2.4 THE SMALL AND MEDIUM ENTERPRISES DEVELOPEMENT AGENCY OF NIGERIA
The SMEDAN was created by the SMEDAN Act of2003 to promote the development of SME sector of the Nigerian economy and Mrs Modupe Adelaja was appointed the Head. The agency positions itself as a ‘one-stop’ center for Micro, Small and Medium enterprises development. Micro enterprises are included in the clientele of the agency since they form the bedrock of SMEs.
According to Modupe Adelaja, a well developed MSMEs sector has proven yo be the most veritable channel to combat poverty. The establishment of SMEDAN is therefore justified by the need to trigger the development of Nigeria’s SMEs in a structured and efficient manner.
Functions of SMEDAN
The functions of SMEDAN as contained in the act can be summarised as follows
· Stimulating, monitoring and coordinating the development of the SME sector.
· Initiating and articulating policy ideas for SMEs.
· Promoting and facilitating development programmes, instruments and support services to accelerate the development and modernisation of SME operations.
· Serving as a vanguard for rural industrialisation, poverty reduction, job creation and enhanced sustainable livelihoods.
· Linking SMEs to internal and external sources of finance, appropriate technology, technical skills as well as larger enterprises.
· Promoting information and providing access to industrial infrastructure such as layouts, incubators and industrial parks.
· Intermediating between SMEs and the government.
· Working in concert with other institutions, both in the private and public sectors, to create a good enabling environment of business in general and SME activities in particular.
2.5 CHARACTERISTICS OF SMEs
Ogunleye (2004) outlined the following characteristics of SMEs.
I. Ownership and management are held by an individual or group, hence decisions are often subjective
II. They require small capital for establishment, regardless of industry and country where they are based. However, they usually Have difficulties attracting funds for expansion.
III. Proprietors hardly separate private funds from company funds. This leads to inefficiency and performance.
IV. Mist SMEs operate with labour intensive technologies. They find it difficult to shift from one product line to something radically difficult.
V. The rate of business mortality is high due to the reasons of low capital outlay, inadequate market information, lack of appropriate technology, etc.
2.6 BENEFITS AND IMPORTANCE OF SMEs
Many economies, whether developed or developing, have come to realise the importance and values of small business. They are seen to be characterised by dynamism, witty innovations, efficiency and their small size allows for faster decision making process. Their benefits to any economy include the following:
I. Creation of jobs at relatively capital cost especially in the fast growing service sector.
II. Provide a vehicle for reducing income disparities.
III. Develop a pool of skilled and semi skilled workers as a basis for future industrial expansion.
IV. Improve forward and backward linkages between economically, socially and geographically diverse sectors of the economy.
V. Provide opportunities for developing and adapting appropriate technological approaches.
VI. Offer excellent breeding ground for entrepreneurial and managerial talent, the critical shortage of which is often a great handicap to economic development.
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