Disadvantages Of SME

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SME the acronym which stands for “Small and Medium Scale Enterprises” can be said to describe independent organizations or firms which employ fewer that a certain number of employees usually 250 as defined in the European Union , 300 in Nigeria , 500 in the Unites States of America and 200 in some other countries . The number of employees however is not the only criteria for qualifying SMEs: They are equally defined by their annual turnover which has been set to not exceed 50 million euro (applicable in the European Union) or 100 million naira (applicable in Nigeria) per annum, and/or an annual balance sheet that does not exceed 43 million euro (applicable in the European Union). According to Beck et al. (2005), the pro-SME view which is…show more content…
Although the Nigerian Government has proven that it is very committed to supporting the growth and development of SME’s as evidenced by a plethora of SME supporting agencies and policies. It is however advised that the various SME bodies and policies be harmonized to ensure that new entrepreneurs have a one stop shop and to ensure better management of the Government’s objective. Government policy makers should equally begin to consider the possibility developing a version of the Grameen Bank type lending model which takes into consideration peculiarities of the Nigerian business environment- this has the potential of solving the challenge of access to finance. It is highly recommended that the government on all levels take steps to ensure the continued expansion and maintenance of the infrastructure in the country; Decisive and aggressive steps need to be taken on the issues of power generation, road construction and maintenance etc. This same decisive and aggressive measure must be taken to curb the atrocious level of corruption in the country. Small and Medium Scale Enterprises cannot succeed as a whole in Nigeria without a steady enabling business environment, freedom from the restraints of corruption, enabling economic reforms and policies and a supportive
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