PwC MSME Survey 2020

INTERVIEW: ADEYEMI FOLORUNSHO, ASSISTANT DIRECTOR, SECTORAL MATTERS DEPARTMENT, THE MANUFACTURERS ASSOCIATION OF NIGERIA 500 Adeyemi Folorunsho "SMEs would be able to enjoy economies of scale when they conduct business within clusters. There would be an interlinkage of business activities and moving goods from one stage of production to the next would be more connected." connected What are the top three challenges you face dealing with SME's in the Manufacturing sector? ☐ Funding (especially for procurement of technology) ◉ Structure governance / succession Interwoven problem of expansion (Internal & External Challenges) What current policy do you envisage could have a negative impact on SMEs in the Manufacturing sector? Multiplicity of regulation: Currently, there are too many regulations for SMEs to handle The government is expanding tax burden instead of the tax net. It is difficult for SMEs to survive without support from the state. What current policy do you envisage could have a positive impact on SMEs in the Manufacturing sector? Liberalisation of the financial market like DBN, BOI to accommodate easy access to funds by providing lower interest rates. Also, venture capitalists are coming in to provide loans with single digit interest rates. This would have a positive impact on SMEs Establishment of Industrial clusters or zones. SMEs would be able to enjoy economies of scale when they conduct business within clusters. There would be an interlinkage of business activities and moving goods from one stage of production to the next would be more connected. What area of research is needed to support the SMEs in the manufacturing sector? " Product Quality Packaging raw materials for innovation especially in the Food and Agricultural processing sector Process manufacturing: It would add value, create employment and increase turnover Quality Assurance What benefits and partnerships should SMEs in the manufacturing sector look forward to in the near future? " Area of marketing research Partnership of Technology: SMEs would benefit from improved product quality and there would be technology transfer and acquisition Partnerships with organizations that will expose them to international markets PwC MSME Survey 2020 PwC June 2020 47

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