Mrs. Lola Akande, Lagos State Commissioner for Commerce, Industry and Cooperatives, has stated that it is imperative for the government to support SMEs, as failure to do so would lead to a massive job loss and increase in poverty and insecurity.
According to a news report by NAN, Mrs. Lola Akande, represented by Mrs Helen Adesina, Director of Commerce in the ministry, made this statement at the Annual Seminar of the Small and Medium Enterprises Group (SMEG) of the Lagos Chamber of Commerce and Industry (LCCI) on Thursday, tagged “Positioning SMEs for Growth in the New Normal’’.
Mrs. Helen Adesina disclosed that the importance of MSMEs in any economy can not be overemphasized as they account for two-thirds of global employment and half of GDP, she said SMEs create jobs and put food on peoples’ table.
As MSMEs are already faced with challenges of cash flow, competition from larger companies, non-existent economies of scale in raw materials sourcing, it is imperative for the government to support SMEs, as failure to do so would lead to loss of employment, and an exponential increase in poverty and insecurity.
Mrs. Toki Mabogunje, the President of LCCI, also explained that one of the most strategic moves towards reflating the nation’s economy is supporting SMEs. She said that ideas on strategies that would help position small and medium business operators for sustainable growth in the new normal should be put forward.
She commended the interventions by the fiscal and monetary sides of authorities in cushioning the impact of the pandemic on the business community.
What they are saying
Mrs. Lola Akande, represented by Mrs. Helen Adesina, said:
“The importance of MSMEs in any economy is impossible to be overemphasized, as they account for two-thirds of global employment and half of GDP. SMEs create jobs and put food on peoples’ tables. Sadly, SMEs are particularly susceptible to folding up as a result of the COVID and post-COVID economic situation.
“These businesses were already faced with challenges of cash flow, competition from larger companies, non-existent economies of scale in raw materials sourcing, marketing, sales and distribution, as well as, a lack of relevant managerial skills and skilled employees.
“Failure to bolster these vulnerable SMEs with necessary tools to overcome this new normal will lead to loss of employment, a reduction in the spending power of the average citizen and ultimately, an exponential increase in poverty and insecurity.’’
