Group members

Mehreen Sultan Ali 64393

Ummul Banin 64356

Problem Statement

In Nigeria, the most important factors that affect SMEs directly or indirectly, include access
to finance, entrepreneurial skills, marketing management, taxation and regulation, lack of
product patents obsolete technology and lack of short, medium and long term capital,
inadequate access to financial resources and credit facilities affect the performance of the
SMEs. Financial institutions tend to unenthusiastic in pro viding SMEs with credit facilities
at affordable financing cost. Several reasons are responsible for this, from lack of cash
flow, inadequately prepared project proposals, incomplete financial documentation,
inadequate collateral, and failure to raise the required equity contributions by SMEs.
Moreover, the problem of quality of products and low purchasing ability of the target
markets due to the economic conditions, have an effect on the SMEs development in
Nigeria. The inconsistency and poor implementatio n of government policies are some of
the other issues that affect the SMEs in Nigeria.