From surviving to thriving in the post-COVID world, small and medium enterprises (SMEs) in Nigeria are projecting similar or increased revenues in 2023. These are the findings of the second edition of the Mastercard Eastern Europe, Middle East and Africa (EEMEA) SME Confidence Index.
The 2021 inaugural SME Confidence Index delved into the impact of the pandemic on SMEs across sectors, products and services, and how they are embracing a digital future. As a continuation, the second edition of the survey reveals that while 63% of SMEs across Nigeria are confident about business growth, an overwhelming number of businesses (97%) believe that omnichannel payments present the biggest opportunity for them.
As companies recover from the pandemic and return to growth phase, the research shows that 55% of SMEs in Nigeria are concerned about rising cost of doing business in 2023 and access to capital funding (42%).
Six out of 10 SMEs in Nigeria are optimistic about the future
78% of SMEs project increase or similar revenues in 2023. The survey reveals that 63% of micro and small businesses are optimistic about the next 12 months while their medium-sized counterparts run behind at 33%.
The survey highlights top three areas of growth opportunities for SMEs in Nigeria – access to training and development (95%), digitizing business (93%) and access to better data, analytics and insights (89%).
Insufficient access to credit and inflation remain key factors inflation business growth in Nigeria
SMEs in Nigeria have identified rising cost of goods and services (74%), inflation (67%) and insufficient access to credit (42%) as factors impacting business growth.
Other factors include lingering effects of the pandemic (27%), unemployment (24%), red tape and regulations (15%).
“We are encouraged by the findings of the Mastercard SME Confidence Index, which demonstrates the resilience and optimism of SMEs in Nigeria. It is inspiring to see that 78% of SMEs project similar or increased revenues in 2023.
“At Mastercard, we are committed to supporting small businesses and merchants by leveraging our network, technology, and partnerships. In an evolving commercial landscape with changing spending patterns, we recognize the importance of connections and inclusivity.
“We will assist businesses in accessing credit and maintaining stable cash flow. We will provide them with valuable insights through analysis and digital training.
“Moreover, we will empower them to embrace digital solutions, enabling fast electronic payments, fostering business growth, and safeguarding against cyber threats,” said Ebehijie Momoh, Country Manager & Area Business Head for West Africa at Mastercard.
Mastercard leverages its extensive network, state-of-the-art technology, and global partnerships to help SMEs to adapt to changing commercial environments and new spending patterns. The company works with governments and the private sector to build synergies that advance financial inclusion and motivates consumers and merchants to support small businesses.