Building Small and Medium Scale Enterprise

JOS JOURNAL OF ECONOMICS, VOL.4, NO.1

130

BUILDING SMALL AND MEDIUM SCALE ENTERPRISE: A

STRATEGY FOR ECONOMIC DEVELOPMENT IN NIGERIA

GUSHIBET SOLOMON

DEPARTMENT OF ECONOMICS UNIVERSITY OF JOS

JOS - NIGERIA

ABSTRACT

The globalisation of business has increasingly drawn SMEs into global value chains

through different types of cross-border activities. Many entrepreneurs are recognising

the opportunities that this process offers, and gaining access to global markets has

become a strategic instrument for their further development. Access to global markets

for small businesses can offer a host of business opportunities, such as larger and new

niche markets, possibilities to exploit scale and technological advantages, upgrading of

technological capability, ways of spreading risk, lowering and sharing costs, including

R&D costs, and in many cases, improving access to finance. This paper focuses on

how small and medium enterprise activities can be integrated properly into the

mainstream of the economy and thus, to determine how policies can be utilised

effectively to foster the development of small and medium scale enterprises and as

such, enhance economic growth and development. Socio-economic development of

Nigeria can only be achieved by aggregating all the relevant and important sectors and

sub-sectors of Nigeria. Nigeria as a nation exhibits some measures of sectoral

disaggregation and this has affected the ability of the country to properly account for

factors contributing to changes in national income and economic growth. This has led

to dearth of information and data necessary for good and effective policy formulation.

The paper recommends that government should direct all its agencies to patronise

local manufacturers for their daily needs, and ensure adequate power supply. If SMEs

had been given its rightful place, the country would have since joined the league of

developed nations.

INTRODUCTION

Small and Medium Enterprises (SMEs) occupy a place of

pride in virtually every country or state. Because of the significant

roles SMEs play in the growth and development of various

economies, SMEs have aptly been referred to as “the engine of

growth” and “catalysts for socio-economic transformation of any

country”. SMEs represent a veritable vehicle for the achievement

of national economic objectives of employment generation and

BUILDING SMALL AND MEDIUM SCALE ENTERPRISE: A STRATEGY FOR ECONOMIC DEVELOPMENT IN NIGERIA

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poverty reduction at low investment cost as well as the

development of entrepreneurial capabilities including indigenous

technology. Other intrinsic benefits of vibrant SMEs include

access to the infrastructural facilities occasioned by the existence

of such SMEs in their surroundings, the stimulation of economic

activities such as suppliers of various items and distributive trades

for items produced and or needed by the SMEs, stemming from

rural urban migration, enhancement of standard of living of the

employees of SMEs and their dependants as well as those who

are directly or indirectly associated with them. Supporting these

facts, Ajose (2010) states that, SMEs are the pivot of economic

growth and first point of contact for the business world.

Small and medium-sized enterprises (SMEs) are a very

heterogeneous group of businesses usually operating in the

service, trade, agri-business, and manufacturing sectors. They

include a wide variety of firms such as village handicraft makers,

small machine shops, and computer software firms that possess a

wide range of sophistication and skills. Some are dynamic,

innovative, and growth-oriented while others are satisfied to

remain small and perhaps family owned. SMEs usually operate in

the formal sector of the economy and employ mainly wage-

earning workers. SMEs are often classified by the number of

employees and/or by the value of their assets. The size

classification varies within regions and across countries relative to

the size of the economy and its endowments. It is important to

note that there is a minimum as well as a maximum size for SMEs

(Inegbenebor, 2006).

SMEs have played and continue to play significant roles in

the growth, development and industrialization of many economies

the world over. In the case of Nigeria, SMEs have performed

below expectation due to a combination of problems which ranges

from attitude and habits of SMEs themselves through


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environmental related factors, instability of governments and

frequent government policy changes. The supportive business

environment for SMEs is still weak in Nigeria. The SME support

programmes are poorly coordinated and lack the necessary

coverage to reach all sectors of the small business community.

Almost all micro-finance institutions (MFIs) are supposed to cater

for those enterprises with credit lending. However, project lending

and risk capital for SMEs is virtually unavailable. The private

equity and venture capital funds established in Nigeria are few

and cater primarily to the needs of expansion of established

business and privatized companies.

However, as Hallberg (2000) observes, government

assistance strategies in both developed and developing countries

often try to achieve a combination of equity objectives (alleviating

poverty and addressing social, ethnic and gender inequalities) and

efficiency objectives (raising the productivity and profitability of

firms). Likewise, Ojo (2003) argues that all these SME assistance

programmes have failed to promote the development of SMEs.

This was echoed by Tumkella (2003) who observes that all these

programmes could not achieve their expected desires due largely

to abuses, poor project evaluation and monitoring as well as moral

hazards involved in using public funds for the purpose of

promoting private sector enterprises.

However, the purpose of this study is to determine how

policies can be utilized effectively to foster the development of

small and medium scale enterprises and as such, enhance

economic growth and development. Socio-economic development

of Nigeria can only be achieved by aggregating all the relevant

and important sectors and sub-sectors of Nigeria. Nigeria as a

nation exhibits some measures of sectoral disaggregation and this

has affected the ability of the country to properly account for

factors contributing to changes in national income and economic


133

growth. This has led to dearth of information and data necessary

for good and effective policy formulation.

OBJECTIVES OF THE STUDY

The overall objective of this study is to determine how

small and medium scale enterprises can be used as a catalyst for

economic growth and development.

Specific objectives include the following:

1. To examine the constraint affecting small and medium scale

development in Nigeria

2. To evaluate the financial services and incentives available to

SMEs

CONCEPTUAL AND THEORETICAL FRAMEWORK

The performance of small and medium enterprises (SMEs)

is of interest to all countries. The enterprises have a big potential

to bring about social and economic development, by contributing

significantly in employment generation, income generation and

catalyzing development in urban and rural areas (Hallberg, 2000;

OECD, 2004; Williams, 2006). In many of the newly industrialised

nations, more than 98% of all industrial enterprises belong to the

SMEs sector and account for the bulk of the labour force (Sanusi,

2003). It is estimated that SMEs employ 22% of the adult

population in developing countries (Kayanula and Quartey, 2000),

and provide more employment per unit of capital investment than

large-scale enterprises (Inang and Ukpong, 1992). In Nigeria, the

SMEs account for about 70% of industrial employment

(Adebusuyi, 1997) and well over 50% of the Gross Domestic

Product (Odeyemi, 2003). The ability to find out the factors which

improve the profitability of SMEs so that they are successful and

grow into conglomerates is of considerable concern to the

entrepreneurs and the Nigerian government. Recognising the


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importance of SMEs in economic development, government in

Nigeria has set up various programmes and institutions aimed at

developing the SME sector (Olutunla and Obamuyi, 2008).

A new approach to Small and Medium-scale Enterprise

(SME) development began to emerge due to a number of factors.

First, there was growing concern over low employment elasticity

of modern, large-scale production. It was claimed that even with

more optimal policies, this form of industrial organisation was

unable to absorb a significant proportion of the rapidly expanding

labour force (Chenery et al, 1974). Second, there was widespread

recognition that the benefits of economic growth were not being

fairly distributed, and that the use of large-scale, capital-intensive

techniques was partly to blame (Chenery et al, 1974). Third,

empirical diagnosis showed that the causes of poverty were not

confined to unemployment, and that most of the poor were

employed in a large variety of small-scale, low-productivity

activities. Thus, it was thought that one way to alleviate poverty

could be to increase the productivity of those engaged in small-

scale production (Aftab and Rahim, 1989).

Definition of Small and Medium Scale Enterprises

There has not been universally accepted definition of a

small business. This is because the classification of businesses

into large-scale or small-scale is a subjective and qualitative

judgment. And again, in the bid to give a general definition of

SMEs will definitely leave out some components and

characteristics that are peculiar to each country.

Ekpenyong (1992) tries to identify different features in

classifying SMEs in various countries. In countries such as the

USA, Britain, and Canada, small-scale business is defined in

terms of annual turnover and the number of paid employees. In

Britain, for instance, small-scale business is defined as that


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industry with an annual turnover of 2 million pounds or less with

fewer than 200 paid employees. In Japan, small-scale industry is

defined according to the type of industry, paid-up capital and

number of paid employees. Consequently, small and medium-

scale enterprises are defined as: those in manufacturing with 100

million yen paid-up capital and 300 employees, those in wholesale

trade with 30 million yen paid-up capital and 100 employees, and

those in the retail and service trades with 10 million yen paid-up

capital and 50 employees.

In Nigeria, there is no clear-cut definition that distinguishes

a purely small scale enterprise from a medium-scale enterprise.

The Central Bank of Nigeria, in its Monetary Policy Circular No. 22

of 1988, defined small-scale enterprises as having an annual

turnover not exceeding 500,000 naira. In the 1990 budget, the

federal government of Nigeria defined small-scale enterprises for

purposes of commercial bank loans as those with an annual

turnover of not exceeding 500,000 naira, and for Merchant Bank

Loans, those enterprises with capital investments not exceeding 2

million naira (excluding cost of land) or a maximum of 5 million

naira. The National Economic Reconstruction Fund (NERFUND)

put the ceiling for small-scale industries at 10 million naira.

Section 37b (2) of the Companies and Allied Matters Decree of

1990 defines a small company as one with:

(a) An annual turnover of not more than 2 million naira;

(b) Net asset value of not more than 1 million naira.

Similarly, Ajose (2010) views that the Central Bank of

Nigeria (CBN) had defined an SME as an enterprise that has

asset base (excluding land) of between 5 million naira and 500

million naira, and labour force of between 11 and 300 in its

employment. Small and Medium Enterprises (SMEs) as defined

by the National Council of Industries refer to business enterprises

whose total costs excluding land is not more than two hundred


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million naira (N200, 000,000.00) only. Nevertheless, definitions of

SMEs vary significantly, usually in line with the scale of the

economy concerned, its degree of development and the economic

structures that are present.

Characteristics of SMEs in Nigeria

According to Onugu (2005), a major characteristic of

Nigeria‟s SMEs relates to ownership structure or base, which

largely revolves around a key man or family. Hence, a

preponderance of the SMEs is either sole proprietorships or

partnerships. Even where the registration status is thus that of a

limited liability company, the true ownership structure is that of a

one-man, family or partnership business.

Other common features of Nigeria‟s SMEs include the

following among others; labour-intensive production processes,

concentration of management on the key man, limited access to

long term funds, high cost of funds as a result of high interest

rates and bank charges, high mortality rate especially within their

first two years, over-dependence on imported raw materials and

spare parts, Poor inter and intra-sectoral linkages - hence they

hardly enjoy economies of scale benefits, Poor managerial skills

due to their inability to pay for skilled labour, poor product or low

quality output, absence of research and development, little or no

training and development for their staff, Poor documentations of

policy, strategy, financials, plans, information systems, low

entrepreneurial skills, inadequate educational or technical

background, Lack of adequate financial record keeping, poor

capital structure, i.e. low capitalisation, poor management of

financial resources and inability to distinguish between personal

and business finance. Others are, high production costs due to

inadequate infrastructure and wastages, use of rather outdated

and inefficient technology especially as it relates to processing,


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preservation and storage, lack of access to international market,

lack of succession plan and poor access to vital information

Current Policy Intervention

Various interventions have been made in different

countries to cater for the peculiar needs of SMEs. These

interventions include institutional support, training in the relevant

skills, tax concessions, technological acquisition and liberalised

access to credit and innovation schemes (Obadan and Agba,

2006).

Attempts made to address the problem of SMEs in Nigeria

include direct lending by various financial institutions, specification

of credit guidelines by the Central Bank of Nigeria to banks

lending to SMEs, the establishment of rural banking programmes

and indirect lending to SMEs at concessionary rates through

participating banks (Inang and Ukpong, 1992; Inegbenebor,

2006). Other schemes include the establishment of the Second-

tier Securities market, the merger of the Nigerian Bank for

Commerce and Industry, the Nigerian Industrial Development

Banks and the National Economic Reconstruction Fund into the

Bank of Industry to provide cheap financial and business support

services to SMEs. All these have not been as successful as

anticipated. Studies on lending experience of five major banks in

Nigeria from 1990-2006 showed that non-performing loans and

advances range from 40-50% among commercial banks. The poor

attitude of Nigerians to loan repayment led to unwillingness of the

banks to lend to the real sector in preference for the trade sector

(Feese, 1994; Inegbenebor, 2006).

The latest attempt by the Central Bank of Nigeria and the

Banker`s Committee to tackle the financial problems of SMEs is

the establishment of Small and Medium Enterprises Equity

Investment Scheme (SMEEIS). The Scheme requires all banks in


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Nigeria to set aside 10% of their profit before tax annually for

equity investment in small and medium enterprises operating in

the productive sector of the economy. The scheme commenced in

June 2001 and is aimed at: facilitating the flow of funds from

banks for the establishment of new viable small medium industry

projects, stimulating economic growth, developing local

technology, promoting indigenous entrepreneurship, generating

employment (UBA, 2001).

Methodology

This study makes use descriptive analysis in analyzing

how SMEs have been funded both by private sector and the

Government. Data on loan to SMEs and total bank credit were

sourced from Central Bank of Nigeria Bulletin, 2008 edition, as

contained in the table below.


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Table 1. Ratio of Loans to small and Medium scale Enterprises to Commercial bank Total Credit

Period loans to SME

(N ‘M’) total bank

credit bank loan to SMES as % of total credit

1992 20,400 41,810 48.8

1993 15,462.90 48,056 32.2

1994 20,552.50 92,624 22.2

1995 32,374.50 141,146 22.9

1996 42,302.10 169,242 25

1997 40,844.30 240,782 17

1998 42,600.70 272,895.50 15.5

1999 46,824 353,081.10 13.3

2000 44,542.30 508,302.20 8.7

2001 52,428.40 796,164.80 6.6

2002 82,368.40 954,628.80 8.6

2003 90,176.60 1,210,033.10 7.5

2004 54,981.20 1,519,242.70 3.6

2005 50,672.60 1,899,346.40 2.7

2006 25,713.70 2,524,297.90 1

2007 41,100.40 4,813,488.80 0.9

2008 13,383.90 7,725,818.90 0.2

Source: CBN, 2008

The graph below shows the availability and the movement

of total bank credit in the Nigerian economy from 1992 to 2008.

This shows a slow upward trend of bank credit.


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Fig. 1

Source: CBN, 2008

The graph in fig.1 shows that total bank credit to the entire

real sector was extremely low between 1992 and 1997. Loan

support to the real sector started growing at an insignificant pace

from 1998 to 2004. An upward trend of bank credit shows a

significant improvement from 2005 to 2008, and it is expected to

keep growing. This implies that both government and commercial

banks are gradually paying attention to the real sector of the

economy.

Distribution of Loan to Small and Medium Scale Enterprises

in Nigeria

The graph in fig. 2 below shows the distribution of credit

facilities especially bank loan to SMEs in Nigeria from 1992 to

2008. In 1992, a proper framework for financing SMEs in Nigeria

was established by monetary authorities in Nigeria. There was a

mandatory 20% of total bank credit to be allocated to SMEs

owned by Nigerians.


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Fig. 2

Source: CBN, 2008

This mandatory allocation of loan facility to SMEs was in

operation up till 1996. During this period, there was up-rising of

number of small scale industries in the country because the loan

provided a rescue channel for development of this sub-sector.

However, following the abolition of the mandatory bank credit

allocations of 20% of its total credit to SMEs wholly owned by

Nigerians in 1996, there was a drastic fall in total bank credit

available to SMEs. As it can be seen from the graph above, there

was 85% decline in bank loan to SMEs between 2003 and 2008.

This shows that banks are not ready to grant credit facilities to

SMEs nor were they committed to the growth of small scale

enterprises. While there was increase in total bank credits

available from 2005 as noticed in fig. 1, SMEs witnessed a fall in

credit that was available for loan as shown in fig. 2


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Fig. 3

Source: CBN, 2008

The percentage ratio of SMEs‟ loan to total credit shows

clearly and explicitly the downward trend in bank loan to SMEs in

Nigeria. Bank loan to SMEs in early 1990s shared about 50% of

the total bank credit availability. However, this was not the case in

the 2000s after the abolition of mandatory 20% bank credit

allocation to SMEs. As a matter of fact, the percentage has fallen

to inimical 0.2% of the total bank credit. This is absurd, 0.2% is

nothing but non-availability of loan to SMEs.

Many challenges have been identified to be confronting

SMEs in Nigeria but the main problem of SMEs is finance

because all smaller firms live under tight liquidity constraints (Da

Silva et al 2007). Finance, whether owned or borrowed, is needed

to expand investment so as to maximize profit. Many reasons

have been adduced for the inability of SMEs to access funds from

financial institutions in Nigeria. These include poor attitude

towards external financing by Nigerian entrepreneurs, poor quality


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of project proposal presented by the SMEs to financial institutions,

unreliable and outdated database and inability to access the

database of the SMEs by financial institutions.

Components of the Proposed Policy That Can Be Adopted In

Nigeria

There are a number of areas where, directly or indirectly,

the Government has to adopt concrete measures to achieve its

objectives in SME development, although many steps are to be

taken by the private sector, NGOs and local authorities. Effective

support will often require different programmes, tailor-made for

specific SME target groups. Research and more detailed planning

about such support packages will be the responsibility of SMEs, in

close co-operation with donors and other relevant stakeholders. A

number of policy proposals have been pointed out by Calcopietro

and Salaam (1999) in „Small and Medium Scale Enterprise Policy

Proposals‟. These include:

Creating an Enabling Legal Framework

The Government should commit to pass a new enabling

legislation in order to formalise the importance of SMEs in the

overall economy. This legislation should include special provisions

to facilitate empowerment of indigenous entrepreneurs, women

businesses and the youth, and the preservation of the

environment. Empowerment policies reinforce the chances for

market forces to succeed by extending opportunities to compete

to previously disadvantaged categories of entrepreneurs.

Streamlining Regulatory Conditions

It is recommended to simplify and standardise procedures,

including business registration and licensing, loan applications,

purchasing, sub-contracting and tender documents, export


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documentation and other commercial papers, registration of

contracts, simplified tax return forms for SMEs, etc. There is need

for regulations to strengthen SME access to raw materials and

other inputs controlled by monopolistic suppliers. Facilitation of

feasible avenues of legal assistance that could help leveling the

playing fields for SMEs, with particular attention to women and

young entrepreneurs must be also supported.

Establishing Differential Taxation and other Incentives

The number of taxes must be reduced and adjusted to

avoid tax evasion. The central and local governments must work

together to device a tax collection system that reduces the level

and overall burden of taxation on the business community. Higher

write-offs could be granted for expenses incurred, including

training, research, technology transfer and export marketing

expenses. Tax incentives should be granted to large firms and the

banking sector to stimulate subcontracting and greater volumes of

loans to small enterprises. Tax incentives have been included in

some countries such as Tanzania, to help overcome the gender

bias of larger firms and service establishments towards SMEs

owned by women. This implies that a more in-depth research

needs to be done to determine what would be the best course of

action to support SMEs through tax incentives in Nigeria.

Easing Access to Credit, Equity and Guarantees

The rural and micro finance policy is addressing the need

of creating a sound and sustainable financial sub-sector

specialised on savings and credit facilities for very small

entrepreneurs. However, two important areas deserve the

attention of SME Policy, namely credit guarantees and long term

equity finance. Guarantees help in building linkages between

small non-bankable borrowers and formal financial institutions. In


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some countries (e.g. Argentina) innovative credit guarantee

schemes have emerged as a potential financial product when it is

combined with tax breaks and risk capital.

Improving the Physical Infrastructure and Business Facilities

The limited resources and the consequent weakness of

SMEs could, to a significant extent, be overcome by grouping of

SMEs within the same sectors. The spontaneous development of

clustering of SMEs from specific sub-sectors creates opportunities

to support efforts focused on promoting flexible specialisation.

Supporting SME Exports

Exporting is a market opportunity that has been explored

by local SMEs in very rare cases. Nigeria requires the expansion

and modernisation of the exporting sector, in order for it to take on

a significant role in the national economic development. Unless

effective export-promotion policies are implemented, Nigeria

SMEs will not be able to compete internationally. SME Policy

should encourage the establishment of export promotion

mechanisms with national coverage.

Promoting Rural Industrialisation

Improving the physical infrastructure is fundamental to

attract SME investment in earmarked rural areas. Supporting

training, credit delivery, marketing and the provision of extension

services to rural primary producers willing to engage in value-

adding activities is also necessary. The creation of private trading

companies in regional centres to help rural SMEs to

commercialise their produce and basic manufactures in national

urban centres and foreign markets should also be supported.


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Training in Entrepreneurship, Skills and Management

The acquisition of relevant vocational, technical and

business skills is one of the critical factors for success in small

enterprises. The Government has a central responsibility for

education, training and experience transfers, which is shared with

a wide range of institutions, including churches, NGOs, and the

private sector. SME Policy should make specific provisions to

complement existing training initiatives with new strategies aimed

at facilitating access to training by SMEs. Training must become

more sector-specific, focusing on the particular needs and

practical problems of SMEs.

Fostering Linkages with Large Enterprises

Linkages between large and small enterprises should be

encouraged in Nigeria as part of future arrangements with foreign

investors that either benefit from existing incentive packages, or

establish themselves in the future in Export Processing Zones

(EPZs). SME Policy should recommend that the EPZ legislation

include provisions requesting that foreign investors that benefit

from tax exemptions reserve a percentage of their procurement to

Nigeria SME suppliers.

CONCLUSION

The globalisation of business has increasingly drawn

SMEs into global value chains through different types of cross-

border activities. Many entrepreneurs are recognising the

opportunities that this process offers and gaining access to global

markets has become a strategic instrument for their further

development. Access to global markets for small businesses can

offer a host of business opportunities, such as larger and new

niche markets; possibilities to exploit scale and technological

advantages; upgrading of technological capability; ways of


147

spreading risk; lowering and sharing costs, including R&D costs;

and in many cases, improving access to finance. Gaining access

to global markets can help prospective high-growth enterprises

realize their potential and; is often an essential strategic move for

SMEs with large investments in intellectual property.

To prosper, SMEs need a conductive business

environment and regulations, adequate basic infrastructure

services, access to short and long-term funding at reasonable

rates, equity and venture capital, advisory assistance, and

knowledge about market opportunities. However, the situation in

Nigeria is worrisome. Small business operators are perennially

complaining of poor business environment, leading to closure of

businesses daily. Business activities are now at a standstill, those

who are benefiting from overdraft before have nothing to fall back

on because there is hardly overdraft facility again from the banks,

and those with loans that are not yet to mature are often asked to

pay up (Kuteyi, 2010).

Many problems are inhibiting the growth of SMEs in

Nigeria. The major problem is lack of finance whether for the

establishment of new industries or to carry out expansion plans.

The inability to attract financial credit or resources has stifled the

growth of SMEs in the country. The problem of power supply

(energy of electricity) is a critical factor. Funds are spent on

running generators thereby increasing the cost of doing business

(cost of production). This can easily push SMEs out of business.

Also, they typically suffer from weak entrepreneurial skills as well

as deficiencies in accounting, production management, and

business planning.

Other constraints include poor infrastructure, inability to

communicate, multiple taxation, under-capitalisation with difficulty

in gaining access to bank credits and other financial markets,

corruption and a lack of transparency in the running of affairs of


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the business, high bureaucratic costs, and a seeming lack of

government interest in and support for the roles SMEs play in

national economic development and competitiveness.

RECOMMENDATIONS

As SMEs grow, they increasingly need connectivity to

export markets and the world economy. So far, the lessons of

international experience show that very few government and

donor initiatives have succeeded in implementing sustainable

strategies for SMEs development. To succeed, sustainable SME

development will require concerted efforts among the various

parties concerned including commercial, micro and rural banks,

leasing companies and equity providers, consulting and training

firms, internet providers, as well as local business associations.

Government‟s role in the process should be limited to

providing the enabling environment for private sector

development, correcting potential market failures and creating a

level-playing field that will allow SMEs to compete with their larger

counterparts on an equal basis. Government does not have the

finances or the ability to get involved directly in economic activities

such as SME financing and service provision. Emerging

international experience is demonstrating that government is not

the appropriate vehicle to implement and coordinate such efforts,

and that public-private partnerships for SMEs development are a

critical element for the success of these efforts.

In view of the above submissions, the paper proffers the

following recommendations:

i. Government should direct all its agencies to patronise local

manufacturers for their daily needs. This will enhance the

growth of SMEs in the country.

ii. The Central Bank of Nigeria should urgently come up with

credit policy of sectoral allocation on what percentage of


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loan should go to agriculture, manufacturing, and Small

and Medium Scale Enterprises. This should be supported

by monitoring and enforcement to ensure compliance.

iii. Government should improve physical infrastructure in order

to promote rural industrialisation.

iv. Government should ensure adequate power supply

(constant electricity) nationwide. This will encourage the

expansion of small and medium scale businesses.

v. Small and medium scale business entrepreneurs should

constantly engage in capacity building, training, research

and development. This is to develop their competencies in

managing and sustaining their investments.

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Building Small and Medium Scale Enterprise

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