PwC MSME Survey 2020

Over the last three years, how much did your firm grow on average per year? 31% 24% 22% 15% 9% 31% of the businesses revealed that their firm had grown by over 20% per year over the last three years. The findings are interesting given that Nigeria was coming out of the 2016 recession. 15% posited that they had experienced no growth during the three years with 9% claiming their businesses had gotten smaller. The Nigerian economy exited an economic recession in the second quarter of 2017. Since then, the country's quarterly growth has hovered between 1 to 3%. The low growth of the economy could be responsible for the low percentage of businesses that experienced average business growth of over 20% in the last three years. The challenging business environment could also be attributed for this growth trend. According to an SME report by the NBS and SMEDAN, high electricity tariff, high taxes, and high interest rates are top unfavourable policies for SMEs. These challenges combined coupled with the double-digit inflation rate impacting prices of inputs and products, has impacted the growth of businesses in the economy. Nigeria now ranks 131 on the World Bank's Doing Business 2020 index, released Wednesday. The country moved up 15 places from its 2019 spot and has been adjudged as one of the most improved economies in the world. Despite this improvement, there is more work to be done to improve the business environment and remove structural barriers to growth for the MSME sector. Over 20% per year Less than 20% per year Not applicable, the firm is less than 3 years old No growth Got smaller Source: PwC analysis PwC MSME Survey 2020 PwC June 2020 44

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