Key Statistics on Small Businesses in Nigeria
Small and Medium Enterprises (SMEs) are pivotal to Nigeria’s economic landscape, contributing significantly to employment, GDP, and industrial growth. Below are five essential statistics that shed light on the current state of small businesses in Nigeria:
1.Contribution to Employment and GDP
SMEs account for approximately 96% of businesses in Nigeria and employ about 84% of the workforce. They also contribute around 48% to the national Gross Domestic Product (GDP).
2. Perception of Inflation Among SMEs
A recent survey indicates that 83.9% of small businesses perceive the current inflation rate as high. This perception underscores the significant impact of rising prices on SMEs, which form the backbone of Nigeria’s economy.
nairametrics.com
- High Failure Rate of SMEs
Research shows that nearly 50% of small businesses fail within their first year of operation. More specifically, over 95% of SMEs do not survive beyond their first five years. This high failure rate highlights the challenges faced by small businesses in Nigeria.
- Female Ownership in Nigerian SMEs
Out of every 100 businesses in Nigeria, 39 are female-owned. This 39% female business ownership rate is higher than the 29% average in sub-Saharan Africa and the 34% global average, according to data from the World Bank.
- Upcoming MSME Census to Boost Industrial Growth
In 2025, the Federal Ministry of Industry, Trade, and Investment (FMITI) plans to conduct a nationwide census of Micro, Small, and Medium Enterprises (MSMEs). This initiative aims to provide a data-driven roadmap for empowering MSMEs and supporting Nigeria’s economic diversification.
businessday.ng
These statistics underscore the critical role of SMEs in Nigeria’s economy and highlight areas where targeted interventions can support their growth and sustainability.
