PwC MSME Survey 2020
S
Foreword
PwC MSME Survey 2020
PwC
Uyi Akpata
Country and
Regional Senior
Partner
PwC Nigeria
Taiwo
Oyedele
Fiscal Policy
Partner and West
Africa Tax Leader
PwC Nigeria
The MSME sector is the growth engine of any economy contributing
to its development, job creation and export amongst others. According
to the World Bank, MSMEs represent about 90% of businesses and
more than 50% of employment worldwide. Formal SMEs contribute up
to 40% of national income (GDP) in emerging economies.
The latest SMEDAN/NBS MSME Survey indicates Nigeria's SMEs
contribute nearly 50% of the country's GDP and account for over 80%
of employment in the country. No doubt, the sector is pivotal to
Nigeria's growth including reducing poverty levels. However, the
sector continues to be weighed down with challenges which ultimately
impact the nation's growth.
PwC's MSME Survey 2020 is aimed at gauging experiences of
sector players, assessing the underlying issues which MSMEs face
and providing insights on this strategically important sector. The
theme of this publication is "Building to Last: Navigating MSME
growth and sustainability in a New Decade." You will find the
survey headlines ascertain some persistent problems, shed light on
those you never really considered to be issues such as payment
policies and the one on one interviews with business CEOs inspiring.
One of the findings we found provoking was how payment policies
imposed by big corporates severely affect 33% of MSMEs whose
payments were delayed for more than a month. The impact on cash
flows is worse when you consider the double digit interest rates or
inflation. It does not come as a surprise then when about 50% of the
SMEs surveyed did not record growths above 20% over the last 3
years.
It is important to note that the survey was conducted prior to the
COVID-19 pandemic. In the aftermath of the pandemic and as we
enter an age of disruptions to traditional business models,
traditional approaches to doing business in Nigeria surely must
change. Does the Nigerian environment offer a platform that
ensures Nigerian SMEs remain competitive? Will there be a
ready workforce that can support the much needed advancement
for SMEs? Or will we witness a slow down for decades following
the pandemic? It is of uttermost importance that an inclusive
approach is embraced to advance MSME growth and Nigeria's
competitiveness.
As part of our efforts in this national discourse, PwC Nigeria has
established the SME Desk to support the growth, sustainability
and development of the SME sector in Nigeria.
The SME Desk is our social impact initiative to support small
businesses by providing insights, advice and support on a range
of areas including Finance and Accounting, Tax and Audit. It is
one of the ways we are helping to build a stronger economy by
giving small businesses a greater chance to succeed in an often
difficult environment.
We hope you find this report invaluable and that the insights
within will help SMEs, ministries, agencies and the Government
authorities take our SMEs to the next growth phase in the new
world.
June 2020
3View entire presentation