MICRO, SMALL, AND MEDIUM ENTERPRISES (MSME) NATIONAL SURVEY 2017 REPORT Dr.Yemi Kale Statistician-General of the Federation/CEO National Bureau of Statistics LAGOS | JULY 11, 2019
“MSMEs are the bedrock of Nigeria’s industrialization and inclusive economic development; and the most important component of industrialization as set out in the Economic Recovery and Growth Plan” -H.E. Prof. Yemi Osinbajo
O U TL IN E MSMEs and Economic Growth 1 Survey Background and Methodology 2 Key Findings -Overview 3 Labour Market 4 Finances 5 Challenges 6 Policy Recommendations 7
M S M E S – C R ITIC A L F O R E C O N O M IC G R O W TH Micro, Small, and Medium Enterprises (MSMEs) play a significant role as the engine for economic transformation and industrialization for both developed and developing countries. Key benef efit its s include ude: Improved income re-distribution (low level capital required) • Increased job creation & skills development (particularly for • youth, women, elderly) Increased adoption of technology & innovation (competitiveness) • Industrial diversification • Stimulates local economy (demand down the value chain) • Challeng nges: es: Vulnerable to economic shocks • Stable and supportive policy environment • Excessive regulation, complex & cumbersome tax process, • Skills acquisition for youth population •
B A C K G R O U N D O F S U R V E Y 2010 2003 Highlighted need for accurate and reliable data Strategic partnership with Established in 2003 to • • facilitate promotion & NBS – apex agency for development of MSMEs socio-economic statistics 2010 – First Edition 2013 – 2 nd Edition 2017 – Third Edition Main in Object ectives ives of the Survey ey To establish a credible and reliable database for the MSMEs sub-sector in Nigeria and their • contribution to jobs and wealth creation. Memorandum of Understanding mandates review every three years, ensuring continuity & trackability •
D E F IN IN G M S M E s Source ce of Definit ition ions: s: Based on the SMEDAN National Policy on MSMEs definitions • Adopts dual-criteria class limits: employment and assets (excl. land and buildings) • It is possible under this criteria that a conflict of classification might arise. In such cases, the • employment based classifications takes precedence. e.g. if an enterprise has assets worth seven million naira (N7 million) but only employs 6 • persons, that enterprise shall be classified as micro.
S A M P L IN G M E TH O D O L O G Y The survey was conducted in all 36 states of the federation, including the Federal Capital Territory (FCT), Abuja. Both urban and rural enumeration areas (EAs) were covered. M icro E nterpris es S m all & M ediu m E nterpris es S u bject A reas Canvassed through the Canvassed through the National • • National Integrated Survey Integrated Survey of of Households (NISH) Establishment (NISE) module Owners rshi hip p Status us module Frame for Small & Medium Employme yment nt Informa rmation ion • Frame of EAs determined by Enterprises used for Educatio tiona nal Qualifica ificatio ion • National Population establishment component. Opera rating ing Cost Commission. Housing & Probability Proportional to Size Capa pacity ity Utiliza izatio ion • Population Census used for (PPS) used to allocate number of Market rket Channel nel & Export rt household component establishments to be covered in Reven enue ue Household Listing Exercise state, and within each sub- Establ blish ishme ment nt Growth • used to update frame & sector (within state) Technica nical Support rt Servi rvice ces determine households for survey. 4,000 S M E s vis ited acro s s all s tates , including F C T. S am ple: 22,200 ho us eho lds 600 ho us eho lds w ith enterpris es interview ed per s tate 15 ho us eho lds s elected per E A
O U TL IN E MSMEs and Economic Growth 1 Survey Background and Methodology 2 Key Findings -Overview 3 Labour Market 4 Finances 5 Challenges 6 Policy Recommendations 7
O V E R V IE W O F F IN D IN G S es: 41, , 543, 028 Total Number er of Enterp rpris rises: Micro: 41,469,947 (99.8%) • Small: 71,288 (0.17%) • Medium: 1,793 (0.004%) • Top SME States: tes: Lagos: 8,395 (11.5%) • Oyo: 6,131 (8.4%) • Osun: 3,007 (4.1%) • Fewest west SME States tes: Yobe: 102 (0.1%) • Bayelsa: 300 (0.4%) • Borno: 538 (0.7%) • 10000 5000 0 ABIA ADAMAWA AKWA-IBOM ANAMBRA BAUCHI BAYELSA BENUE BORNO CROSS RIVER DELTA EDO EKITI ENUGU GOMBE IMO JIGAWA KADUNA KANO KATSINA KEBBI KOGI KWARA LAGOS NASARAWA NIGER OGUN ONDO OSUN OYO PLATEAU RIVERS SOKOTO TARABA YOBE ZAMFARA FCT EBONYI STATE
O V E R V IE W O F F IN D IN G S -TR E N D S Key growth th trend nds: s: Growth: 2013 to 2017 20.0% Micro enterprises, being 99% of MSMEs drives 10.0% • 0.0% the trend for the entire category -10.0% Compared with 2013, both Total MSMEs and • -20.0% Micro enterprises grew by 12.1% -30.0% -40.0% Small enterprises, grew 4.6% from 2013 • -50.0% The number of medium-sized enterprises • -60.0% decreased significantly from 4,670 in 2013 to -70.0% Total MSMEs Micro Small Medium 1,793 in 2017 (61% drop) Highest est Gaining ng -States tes (SME MEs): Bigg ggest t Decline ne -States tes (SME MEs): s): Kano (-70.5 .5%) %) • Kwara ra(526.5 .5%) %) • Rivers rs (-45.1 5.1%) %) • Nasarawa sarawa (132.5%) .5%) • Plateau teau (-27. 7.8%) 8%) • Jiga gawa (116%) %) •
C O M P O S ITIO N O F M S M E s – B Y B U S IN E S S TY P E S m all E nterpris es M edium E nterpris es EDUCATION 27% MANUFACTURING 43% MANUFACTURING 23% WHOLESALE/RETAIL TRADE 13% WHOLESALE/RETAIL TRADE 18% HUMAN HEALTH & SOCIAL WORKS 12% HUMAN HEALTH & SOCIAL WORKS 10% ACCOMODATION & FOOD SERVICES 9% ACCOMODATION & FOOD SERVICES 8% EDUCATION 7% PROFESSIONAL, SCIENTIFIC AND… 4% CONSTRUCTION 5% OTHERS SERVICES ACTIVITIES 3% TRANSPORT & STORAGE 3% REAL ESTATE ACTIVITIES 2% INFORMATION AND COMMUNICATION 3% ADMINISTRATIVE AND SUPPORT… 1% OTHERS SERVICES ACTIVITIES 2% TRANSPORT & STORAGE 1% MINING & QUARRYING 2% INFORMATION AND COMMUNICATION 1% ADMINISTRATIVE AND SUPPORT SERVICE… 1% CONSTRUCTION 1% PROFESSIONAL, SCIENTIFIC AND… 0% AGRICULTURE 1% ARTS, ENTERTAINMENT AND RECREATION 0% ARTS, ENTERTAINMENT AND… 0% REAL ESTATE ACTIVITIES 0% MINING & QUARRYING 0% WATER SUPPLY, SEWERAGE, WASTE… 0% WATER SUPPLY, SEWERAGE, WASTE… 0% AGRICULTURE 0% Key Observ rvat ations: ions: Composition of sectors is different for each business type classification, primarily due to staff requirements of • more formal establishments. E.g. Education & Construction are low for small business but top 5 for medium-scale enterprises. Education, Manufacturing, and Wholesale/Retail Trade make up 68% of small enterprises. • Manufacturing, Wholesale/Retail Trade, and Human Health & Social Works make up 68% of medium enterprises. •
C O M P O S ITIO N O F M S M E s – B Y B U S IN E S S TY P E M icro E nterpris es Wholesale/retail trade 42.3% Key Observ rvat ations: ions: Agriculture 20.9% Others services activities 13.1% Wholesale/Retail Trade, Agriculture, and other • Manufacturing 9.0% services activities make up 76.3% of Micro enterprises. Accommodation & food services 5.7% Sectors requiring high numbers of employers or • Transport & storage 3.1% skilled labour – education, human health & social Construction 2.2% works, info. & communications have very low Professional, scientific and technical… 1.8% numbers of micro enterprises Human health & social works 0.6% Accommodation & Food services is a preferred • Arts, entertainment and recreation 0.5% sector (top 5) across all business classification types. Information and communication 0.3% Water supply, sewerage, waste… 0.2% Mining & quarrying 0.2% Education 0.1% Administrative and support service… 0.1% Real estate activities 0.1%
O W N E R S H IP S TR U C TU R E S m all & M ediu m E nterpris es M icro E nterpris es FAITH BASED OTHERS ORGANISATION 2% Faith Based Others 6% Partnership COOPERATIVE Organization 1% 2% 0% 1% PRIVATE LIMITED LIABILITY COMPANY 21% SOLE PROPRIETORSHIP PARTNERSHIP 65% 5% Sole Proprietorship 97% 48.1% 40.1% 40% 30% 10.9% 13% 10% 7% 0.3% 0.6% BELOW 20 20 - 25 26 - 35 36 - 50 51 ABOVE Below 20 20-25 26-35 36-50 51-60 Unsurprisingly, a large majority of micro businesses are sole proprietorships, SMEs however are more distributed • with 65% sole proprietorship, 21% private limited liability, 6% faith based, and 5% partnerships. Micro businesses are mostly younger people 26-50y.o., while SMEs skew older – 88% are over 36 y.o. •
O U TL IN E MSMEs and Economic Growth 1 Survey Background and Methodology 2 Key Findings -Overview 3 Labour Market 4 Finances 5 Challenges 6 Policy Recommendations 7
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