MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) REGULATORY COST OF COMPLIANCE: A PILOT STUDY COVERING LAGOS STATE AND THE FCT.

Abstract

Globally, a large percentage of business organisations are categorised as small business, with a corresponding indisputable importance to both developed and developing economies. According to the World Trade Organization, micro, small and medium size enterprises (MSMEs) make up over 95% of all firms, accounting for approximately 50% of value-added and 60% of total employment. Micro enterprises, the smallest component of the MSME sector, are increasingly the largest sources of employment in many developing countries, especially for women and youth.1 In Nigeria, MSMEs contribute approximately 48% of the national Gross Domestic Product (GDP), accounting for nearly 96% of businesses and just over 84% of employment. According to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Nigeria had approximately 41.5 million MSMEs in 2017, split into 99.8% for micro-enterprises and 0.2% for small and medium enterprises. The National Bureau of Statistics (NBS) reported that MSMEs in Nigeria contributed about 48% of the country’s GDP between 2014 to 2019 and accounted for about 7.3% of goods and services exported from the country.2