The Role of Entrepreneurship in Economic Development: Thenigerian Perspective

Topics: Industry, Economic growth, Economics Pages: 6 (1969 words) Published: February 12, 2013
European Journal of Business and ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 4, No.8, 2012 100
and support services to accelerate the development and modernisation of MSMEs, SMEDAN badly needed to have acomprehensive understanding and knowledge of the population of MSMEs in the country, their distribution bysectors such as agriculture, manufacturing, services, trade, construction, mining, technology, etc, and their distribution by rural and urban areas as well as the level of vertical and horizontal linkages within and betweenvarious sectors of industry so as to access the level of industrial integration and the incidence of sub-contracting andits potential in giving a flip to industrial development.The census/survey will also enable SMEDAN to determine and assess the major operating difficulties of MSMEsrelating to both market functions (such as demand-pricing factors, supply factors, raw materials, technologyinfrastructure, etc) and policy environment as it relates to regulatory, incentive and support regimes. The overall benefits of the census/survey would hinge on the expected robust data and information, which SMEDAN wouldemploy as a basis for policy formulation, implementation and intervention, effective developmental planning, vitaladvice on new investments, grow and profitable areas, raw materials availability as well as available technology,available markets, available sources of funds and assistance.The survey exercise is also expected to adequately equip and empower SMEDAN to effectively do the following,inter alia:i. Map out effective strategies for revamping and reforming the MSMEs sub-sector through appropriatelyadvising the government on policy formulation and execution.ii. Recommend the right operators for various incentives and support by government including funding, be itloan, equity and grants.iii. Offer relevant advisory services to state governments on how best to support and invigorate MSMEs in their domains bearing their peculiarities and circumstances in mind.iv. Identify viable projects for both local and foreign investors in order to attract foreign investment.v. Identify viable projects with export potentials and also identify and advise on the appropriate foreignmarkets in order to boost foreign exchange Identify and assess MSMEs critical requirements in the areas of capacity building, skills gap, knowledge,skills and process and liaise with the relevant institutions and agencies of government like the National PovertyEradication Programme (NAPEP), the Centre for Management Development (CMD), the National Directorate of Employment (NDE), etc.vii. Establish a befitting business support centre for each state in the federation.viii. Facilitate the promotion and government patronage of quality local products of MSMEs for either localconsumption or export or both. 4.1 A COMPARATIVE ANALYSIS BETWEEN INDIA’S SMALL SCALE INDUSTRIES (SSIs) ANDNIGERIA’S SMEs The magnitude of contributions as well as the impact of SSIs on the economic growth and development of India ishighly significant as evidenced by the following figures. The SSIs represent ninety-five percent (95%) of the totalindustrial units in India, contribute forty-five percent (45%) of the total industrial output, account for eighty percent(80%) of all employment in the industrial sector, and contribute thirty-five percent (35%) each of total exports andvalue-added by the entire manufacturing sector respectively in India. Between 1990 and 1991, SSI real growth inIndia recorded between a low of 7.1% in 1993/94 and a high of 11.3% in 1996/97.As a result of commitment and focus on SSIs and driven by their all important role in the economic development, thegovernment of India had as far back as in 1948 put in place, an effective and efficient industrial policy for developing SSIs such that by the year 2000, India had three (3) million SSIs with a production value of US$110billion, export volume of US$...
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