Small and medium scale enterprise in Nigeria have not performed estimably well and hence, it has not played the expected vital role in the economic growth and development in the country. This situation however has been of great concern to the government, operators, citizens, practitioners and the organised private sector. Hence, they have made policies for energizing the same.
The National Federation of Independent Businesses may have at least a partial answer. Here are the biggest challenges presented in a recent report. Health Care Bar-none, one of the most challenging aspects of running a small business comes from managing health care for your employees.
One of those regulations deals with the environment. Another set of regulations that may damper your business is advertising regulations. In this instance, the challenge occurs when the copywriter enjoys artistic license too Sme problems and puts fraudulent claims in the copy.
The Federal Trade Commission applies these regulations to both online and print advertising. In advertising, honesty truly is the best policy. Federal Income Taxes Does it feel like each year federal income tax rates skyrocket?
Fortunately, a SBA loan can help you if you plan on purchasing commercial property or major equipment. Tax Compliance When your small business is home-based, home office deductions are vital for keeping profits high. This is in stark contrast to the more traditional and complicated accrual method.
The National Federation of Independent Business states that when you invest in your business, Section allows you to instantly deduct the cost of that investment.
Therefore, that investment-cost can be re-invested further into your company. Cash Flow From online invoice software to better budgeting systems and effective cash flow managementthis challenge can be overcome.
However, virtually every small business owner has cash flow problems. His solution was to keep astute track of his income and expenses. This highly professional bookkeeping impressed the bank, and he finally received his loan.
Without obsession, work becomes another mindless grindstone to put your nose to. Not Diversifying Client Bases I want you to take a good, long look at your client list.
Quality In time, a business may boom beyond growth expectations. This is why it is crucial for you to scale up your business — without sacrificing the qualities that made you such a hit in the first place. Hiring New Employees Around the nation, many small businesses face employee-hiring troubles.
The cost equipment, benefits, taxes, bonuses, etc. Without employees, a small business cannot run successfully with the rare exception of home-run businesses. In the event that you can, life would be a lot easier if you had a few employees under the belt.
Conclusion As a small business owner, realizing this one insight is essential for maintaining a calm head: Barista Photo via Shutterstock.ADBI Working Paper Series.
Major Challenges Facing Small and Medium-sized Enterprises SMEs are the backbone of the economies of Asia, accounting for 98% of all enterprises asymmetric information problem between suppliers and demanders of funds in general.
Aside from the SMEs problems in accessing loan facilities, poor infrastructure and high cost of power are also keeping the poor Filipino entrepreneurs from achieving global competitiveness. Marcos points out that Filipino SMEs are powerless in the Asean integration free-for-all without full government support.
This statistic displays the expectations of small and medium enterprises (SME) for the extent to which staffing problems will be an obstacle to running the business in the next 12 months in the. The Asian Development Bank's Asia SME Finance Monitor was launched early this month.
We take a look at how governments and development partners can assist SMEs in the region. There are four main problems faced by the SMEs in the study area such as marketing problems, followed by financial problems, management problems and skilled workforce.
Besides, there is also the problem of competition and support and other unapparent problems such as the problem of capital and production problems. Problems of SME’s in Nigeria High cost of doing business: One of the major challenges faced by small and medium scale enterprise in Nigeria is the high cost of running their business operations.
Some of these problems can be attributed to poor state of infrastructure.