SME growth depends on more than just capital

By  George  Ogbonnaya

For years, conversations about Nigeria’s small and medium‑sized enterprises have centered on securing capital. While financing remains essential, it alone will not fuel the next phase of SME expansion; other elements must be addressed.

Entrepreneurs across the country grapple with high operating costs, shifting customer preferences, rapid technological change, and intensifying competition. At the same time, digital tools, regional trade, and emerging technologies offer new avenues for growth. These challenges and opportunities make the construction of a stronger business ecosystem more urgent than ever.

The pressing issue is no longer mere survival; many SMEs have proven resilience in difficult times. The current focus is whether they can achieve sustainable growth and compete in an increasingly interconnected marketplace.

Achieving this requires building stronger ecosystems that underpin SME success.

Globally, the most effective support for SMEs goes beyond credit. It involves creating systems that link enterprises to physical infrastructure, technology, markets, skills, networks, and capital. Success stems from operating within such enabling environments rather than merely receiving funds. Nigeria can adopt this approach.

Four primary priorities underpin the development of such an ecosystem for Nigerian SMEs.

Infrastructure as a productivity enabler

Infrastructure remains one of the biggest obstacles to business growth in Nigeria. Reliable electricity, efficient transport networks, and robust internet connectivity are not optional luxuries—they are essential for competitiveness.

For many SMEs, energy costs consume a large share of expenses, eroding profits and limiting expansion. Affordable and