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Abstract

Small scale businesses have been accepted world wide as instrument of economic growth and development. No wonder that government, particularly in the developing countries has made tremendous effort and establish policies to enhance the capacity of micro and small scales enterprises (MSEs). However, despite government institutional and policies support to enhancing the capacity of small and medium scale enterprises, small and medium enterprises has fallen short concern and skepticism on whether SMEs developments in Nigeria. SMES are faxed with significant challenges that compromise their ability to function and to contribute optimally to the economy. This study examine the challenges and prospects of micro and small scale enterprises development in Nigeria by classification are grouped under micro and small scale enterprises, hence, the scope of study. This study was conducted in Imo State, Sourth Eastern Nigeria with the use of questionnaire and interview to gather relevant data that was statistically analyzed. The phenomenal growth of small and medium enterprise in Nigeria is mainly due to the people’s quest to be self employed and not because it is easy to establish or manage. Financial constraints and lack of management skill hamper the efficient performance of micro and small scale enterprises in Nigeria. In view of this, we recommend that government and other non-governmental organization should regularly organize seminars for potential and actual small and medium enterprise.

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