By Bowofoluwa Fajembola
The performance and survival of SMEs depend on the favourable policy that can drive and develop small scale industries in the country. The evolution of SMEs leads to poverty alleviation, employment creation and multiplication of potential entrepreneurs, which offers linkage development of large industries and it provides gainful employment for about 70% population.
SMEs are the driving forces established importantly as the mainstay of the economy system, which plays a key role in the informal sector. The sector economically holds a key to sustainable development of the country.
For SMEs to perform better, government should support and encourage small scale industries with infrastructural support, technology up grading and preferential policy support. Similarly, government should also employ economic diversification for SMEs in all areas of the economy.
Lack of access to financial resources is a significant barrier to the performance of SMEs, which government, small and medium enterprise agencies should improve on in the access of small enterprises to financial services.
Thus, government should restructure small scale enterprises by providing business start up trainings, entrepreneurial skills and make financial system more accessible to small scale industries in the country.
Favorable Tax policies, financial assistance with low interest rate will also make small scale industries perform and grow better.
Government should also create the best conducive environment for the striving industries, provide economic uplifting factor and make SMEs sub sectors very vibrant and productive.
Apart from government, entrepreneurs should be able to pursue growth strategies, expose their business to critical self analysis and employ a multi pronged approach that emphasizes stand out, as being the best requires a commitment to excellence in all areas.
The role of SMEs should be appreciated as the future of SMEs is bright and vibrant.