• Friday, March 29, 2024
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SMEs active participation in decision making will drive competitiveness, study finds

SMEs active participation in decision making will drive competitiveness, study finds

Active participation and representation of operators of small businesses in government policies formulation on the country’s entrepreneurship ecosystem will help drive competitiveness, a new study shows.

The inaugural study conducted by the Association of Small Business Owners of Nigeria (ASBON) discovered that government policy has a major impact on the competitiveness of SMEs, indicating that their performance varies with the choice of the policy they adopted.

The study shows that business growth of SMEs correlates significantly with government policy done in collaboration with the relevant SME stakeholders.

“This implies that any increase in development and growth of the SME sector will be triggered if there are right government policies in place,” according to the study.

“The coefficient of determination reveals that government policy had a moderate effect on business growth and is also responsible for 53 percent variance in the growth of SMEs.”

The study also revealed that public-private partnership (PPPs) and public-private dialogue (PPD) are crucial for effective development and implementation of initiatives that advance stakeholders inclusion and inclusive growth.

It called for the government and private sector to play a joint role in enabling a safe and secure operating business environment.

According to the study, 61 percent of SMEs surveyed recognised the great potential of PPP and PPD, and 63 percent think private sector initiatives and partnerships will benefit businesses and markets in which they operate.

One in three SMEs believed that collaborating with the government and businesses outside their markets could impact their growth.

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Speaking on the findings of the report, Femi Egbesola, national president of ASBON, said the research shows that there is every need now more than ever before for SMEs to be more actively involved in the policies and decisions that relates to them.

“We are stakeholders and we can no longer keep quiet and continue to do business as usual,” he said.

“It is therefore important for the various levels of government in the country to embark on the massive collaborative partnership with the sector’s stakeholders for the development and growth of SMEs operating in the country. Through this way, Nigeria’s economic growth can be facilitated,” he added.

He urged the government to work closely with SMEs and the wider business community to advance SME inclusion into the digital economy through tailor made digitalisation strategies, cutting edge technologies, insights and policy advice.

He stressed that collaboration is key in developing a commercial landscape that is fit for future growth.

The study recommends that the government enact and implement laws, regulations and policies that link institutional development to entrepreneurial growth and survival.

It also called on the government to create a business environment that is highly conducive for SMEs, noting that it will help increase their survival rate while enhancing economic growth.