SME simply means small & medium enterprises. SME is very crucial to the development of a country's economy.
Importance of S.M.E:
It creates employment and provide several job opportunities.
It diversify output.
Business district from the owners.
It increases productivity.
Growth in economy.
CHALLENGES OF SME :
Insufficient Capital- sometimes starting up a small business it requires capital. most of our youths out there got alot of different ideas on starting up a small business but no means of getting capital to start up. this is one of the main challenges. Tips on how or to raise capital is from Family, friends and Banks.
Poor Infrastructure - In every part of the world, No matter what business you about to start up, it mostly require electricity. either being a barber, fashion designer, hair dresser, production of bottle or sercet water, or even running a company for things to go as we want, it requires electricity. and if the electricity supply is poor, i'm very sure it will affect the business especially for the starters.
Difficulty in securing bank loans - Well for one who just or about to start a business, it will be a bit difficult to get loans from banks. cos to get loans there must be some criteria that you must meet up such as characters, collateral willingness to pay. for a start up nothing to present as a collateral i'm sure it will be difficult to secure bank loans.
Poor Managerial capability - to come out successful in a business, one has to have a mentor to look up to that is in same line of business you are about to start up.
PROBLEMS OF SME BUSINESS:
Money management.
Fatigue.
Client dependence.
