line-height:150%;font-family:" times="" new="" roman","serif""="">Inadequate Basic
Infrastructure:
150%;font-family:" times="" new="" roman","serif""=""> Government has not done enough to
create the best conducive environment for the striving of SMEs, the problem of
infrastructures ranges from shortage of water supply, inadequate transport
systems, lack of electricity to improper solid waste management. Nigeria’s
underdeveloped physical and social infrastructures create a binding constraint
to SMEs growth, since; they heavily rely on the inefficiently provided state
infrastructures and cannot afford the cost of developing alternatives].
line-height:150%;font-family:" times="" new="" roman","serif""="">Socio-Cultural Problems:
Most Nigerian Entrepreneurs do not have the investment culture of ploughing
back profits. It was observed that the attitude of a typical Nigerian
entrepreneur is to invest today and reap tomorrow. Also, the socio-political
ambitions of some entrepreneurs may lead to the diversion of valuable funds and
energy from business to social waste. The problem of bias against made in
Nigeria goods is significant. Most Nigerians have developed a high propensity
for the consumption of foreign goods as against their locally made substitutes.
line-height:150%;font-family:" times="" new="" roman","serif""="">Strategic Planning
Problems:
font-family:" times="" new="" roman","serif""=""> SMEs often do not carry out proper
strategic planning in their operations. One problem of SMEs is lack of
strategic planning. Sound planning is a necessary input to a sound
decision-making.
line-height:150%;font-family:" times="" new="" roman","serif""="">Location/Economic
Problems:
font-family:" times="" new="" roman","serif""=""> Market stores are dominated by absentee
landlords who charge exorbitant rates. The ownership of market stores by
politicians is crowding real small-scale operators out of the market. The high
rents charged by store owners on good locations have forced real small-scale
operators into the streets or at best into accessible places. Also, domestic
economic problems of deregulation and removal of protection as well as the
global financial crisis have been detrimental to SMEs.
line-height:150%;font-family:" times="" new="" roman","serif""="">Poor Accounting System:
The accounting system of most SMEs lack standards hence, no proper assessment
of their performances. This creates opportunity for mismanagement and
eventually leads to the downfall of the establishment.
line-height:150%;font-family:" times="" new="" roman","serif""="">Multiple Taxation:
This has become a major problem especially given the role of tax consultants
and agents hired by local governments. They are often crude in their operation,
excessive in their assessment and destructive in their relationship with the
production process. They tax everything in their bid to generate revenue
without considering the net effect to household incomes and employment..............
AZhmdK85c0006e6818216.82926110, 8. (2018). CHALLENGES, PROBLEMS AND PROSPECTS OF SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN NIGERIA. Afribary. Retrieved from https://beta.afribary.com/works/challenges-problems-and-prospects-of-small-and-medium-scale-enterprises-smes-in-nigeria-1648
AZhmdK85c0006e6818216.82926110, 8Xoa6K95c0006e67e00e4.16014477 "CHALLENGES, PROBLEMS AND PROSPECTS OF SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN NIGERIA" Afribary. Afribary, 29 Jan. 2018, https://beta.afribary.com/works/challenges-problems-and-prospects-of-small-and-medium-scale-enterprises-smes-in-nigeria-1648. Accessed 24 Apr. 2025.
AZhmdK85c0006e6818216.82926110, 8Xoa6K95c0006e67e00e4.16014477 . "CHALLENGES, PROBLEMS AND PROSPECTS OF SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN NIGERIA". Afribary, Afribary, 29 Jan. 2018. Web. 24 Apr. 2025. < https://beta.afribary.com/works/challenges-problems-and-prospects-of-small-and-medium-scale-enterprises-smes-in-nigeria-1648 >.
AZhmdK85c0006e6818216.82926110, 8Xoa6K95c0006e67e00e4.16014477 . "CHALLENGES, PROBLEMS AND PROSPECTS OF SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN NIGERIA" Afribary (2018). Accessed April 24, 2025. https://beta.afribary.com/works/challenges-problems-and-prospects-of-small-and-medium-scale-enterprises-smes-in-nigeria-1648