SMEs are globally acclaimed as viable drivers of economic prosperity of nations. However, despite successive Nigerian government regimes’ supposed efforts to yield similar benefits, much result has not been recorded to justify huge resources expended so far. This paper takes an exploratory approach using empirical evidences to investigate the peculiarity of Nigerian SMEs’ backseat status in driving the nation’s economy. Related literature was reviewed to iterate the researcher’s stance and broaden the views expressed. Findings revealed a plethora of policy summersault characterized by noble policies that have suffered poor implementation. Also, most SME owners set out to make a livelihood than to play significant economic role thus remaining peasant with little or no growth ambitions. Capitalization is another huge stumbling block which is compounded by reluctance of financial institutions to extend credit facilities to SMEs. The paper suggests wholesome government policy recap that offers short, medium and long term development strategies for SME performance and development. Financial institutions should be encouraged to design credit facilities that suit SMEs to offer revolving capitalization for them. Capacity building on basic business management and strategy should also be inculcated in SME owners to enhance performance of their ventures; if they knew better, they’d do better.
SMEs are globally acclaimed as viable drivers of economic prosperity of nations. However, despite successive Nigerian government regimes’ supposed efforts to yield similar benefits, much result has not been recorded to justify huge resources expended so far. This paper takes an exploratory approach using empirical evidences to investigate the peculiarity of Nigerian SMEs’ backseat status in driving the nation’s economy. Related literature was reviewed to iterate the researcher’s stance and broaden the views expressed. Findings revealed a plethora of policy summersault characterized by noble policies that have suffered poor implementation. Also, most SME owners set out to make a livelihood than to play significant economic role thus remaining peasant with little or no growth ambitions. Capitalization is another huge stumbling block which is compounded by reluctance of financial institutions to extend credit facilities to SMEs. The paper suggests wholesome government policy recap that offers short, medium and long term development strategies for SME performance and development. Financial institutions should be encouraged to design credit facilities that suit SMEs to offer revolving capitalization for them. Capacity building on basic business management and strategy should also be inculcated in SME owners to enhance performance of their ventures; if they knew better, they’d do better.