A recent study by Small Firm Diaries that was released by the National Bureau of Statistics has revealed that women hold 40% of Micro, Small, and Medium-Sized Enterprises in Nigeria.
Only 12% of MSMEs are co-owned by men and women, according to the “Country Data Overview” study, while 48% are owned only by men.
According to a World Bank analysis, Nigeria had a female ownership representation rate of just 16.8%, compared to a global average of 32.9% for businesses. For major businesses, the percentage fell to just 12.2%.
Since MSMEs account for 96% of businesses and 86% of all employment in Nigeria, the study was done to better understand their function and operations in the country.
According to SMEDAN, MSMEs are defined as microbusinesses as those with less than five million Naira in assets, employing one to ten people, and small businesses as those with more than five million Naira in assets but fewer than ten employees.
The report compiled information from 161 businesses in the light manufacturing, agri-processing, and services sectors in the states of Enugu, Kaduna, and Lagos.
According to the report, MSMEs in Nigeria generate an average of N2.3 million annually, with an operating margin of N768,000.
Additionally, 47% of MSMEs had monthly revenue below N200,000, and 62% had monthly revenue below N300,000.
According to the study, 97% of MSMEs had bank accounts, but fewer than 50% of them were routinely used.
A little over 45% of MSMEs owned by women utilized credit facilities, compared to about 47% of MSMEs owned by men.
In terms of MSME use of digital financial services, more than 80% report owning a debit card, 65% report using mobile banking, and 56% report using POS devices.
However, the study found that only 5% of MSME owners in Nigeria had ever used a credit card.
The number of loans taken, however, varied significantly between the sexes. The average salary for men was N93,000, while the average salary for women was N57,000.
When asked about issues they had using digital financial services, 60% responded that the main issue was money coming late.
A little over 63% of research participants said they used DFS because they were getting paid via the platform.
More than 50% of MSME business owners say that the biggest obstacle to using technology in their organizations is the expense. About 27% said the obstacle was the level of competence needed.
As they employ more people than the formal sector, MSMEs are regarded as the backbone of the Nigerian economy.
