How SME clusters can boost sustained growth

Accelerating industrialisation requires creating small and medium-sized enterprise (SME) clusters  and  focusing on job creation and entrepreneurship, the President, Association of Small Business Owners of Nigeria (ASBON), Dr Femi Egbesola,  has said.

Egbesola said focusing on job creation, entrepreneurship and the promotion of small and medium enterprises (SMEs) could boost inclusive and sustainable industrial development across the country.

According to him,  SME networking  through  cluster development  would  assist them to overcome the challenges of the economy by fostering their collective efficiency  apart from helping the government  and the banks to monitor  loan repayment and regulatory compliance.

Given the substantial opportunities for SMEs in areas such as manufacturing, services and agriculture and their potential for reducing poverty, he said  it was  critical for governments to come up with effective strategies and practical investment programmes to facilitate further SME cluster development. Egbesola stressed the  need to create an enabling environment for business, which activates industrial growth, triggers local economic development and increases income and job opportunities.

He  said ASBON was working with Ogun State government  to take over  management of Yewa market.

The partnership, according to him, is expected  to provide some tax reliefs for  SMEs  and encourage more Nigerians to embrace entrepreneurship by taking spaces at the market. Egbesola said the association is in the forefront of promoting made-in–Nigeria products. According to him, Made in Nigeria’ projects enhance manufacturing.

Other than opening avenues for job creation and skill enhancement, he  believes it aims at enhancing the quality standards of Nigerian made products, minimising the impact on the environment, and making Nigeria  a desirable destination for capital and technological investment – factors that will go a long way in boosting exports.

He reiterated the plan of the association to establish a micro finance bank to help entrepreneurs grow their ventures.

The overall entrepreneurial ecosystem, the ASBON boss, maintained, needs to be nurtured to encourage greater growth ambition among SMEs. This could be supported through the establishment of public-private partnerships delivering high-quality SME business support.

He said there was need  to support SMEs to innovate and transform as a means of building a sustainable business, and  these should include a healthy dose of incentives and financial-assistance programmes to help them along.

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