SMEDAN is a body that was established by the government of Nigeria in 2003. The sole aim at the time was to help with the development of MSMEs within the country. SMEDAN stands for Small and Medium Enterprises Development Agency of Nigeria.
Upon establishment, SMEDAN had several objectives that hold to date. They include:
a. Monitor, stimulate, and coordinate MSME development in Nigeria.
b. Initiate policy ideas and articulate them to ensure the proper development of MSMEs within the country.
c. Facilitate and promote different development programs, instruments, and support services. All of these are aimed at accelerating the development and modernization of MSMEs in Nigeria.
Based on the above objectives, SMEDAN is saddled with performing a series of functions. Some of these functions include:
a. Serves as a leading organization to deal with issues of poverty by creating a favourable environment. This is achieved by the industrialization of rural areas and creating jobs to enhance the livelihood of Nigerians.
b. Acts as the link between MSMEs and financial sources (internal and external), required technology, and technical skills. They also link MSMEs to larger private enterprises that can provide funding and technical support.
c. Promotes the establishment of different industrial infrastructures and provides access as well. Examples of such infrastructures include industrial layouts, parks, and incubators.
d. Acts as the link between MSMEs and the Nigerian Government. This is why the body is seen as the “voice of SMEs” in Nigeria.
e. Creates a thriving environment for the different classes of MSMEs in Nigeria. It achieves this by working in tandem with several institutions within both the public and private sectors.
After viewing the above objectives and functions, it is easy to see why SMEDAN setup the MSME registration process. In the next section, we will take a brief look at what the registration program is about.
Are you getting excited at the idea of getting a SMEDAN certificate? We bet you are after reading through the different benefits that accrue to registered businesses. So which businesses are eligible for the registration process?
If your business falls under the definition of Micro, Small, and Medium Enterprises, then it is eligible. Of course, the business must exist and operate within the shores of Nigeria. The sector in which the business operates doesn’t matter. Once it satisfies these conditions, then it is eligible.
But what defines an MSME in Nigeria? The business should have in employment 250 employees or less. Below is a proper break down so that you can tell which section your business belongs to.
a. Micro-Enterprise – Minimum of 1 and a maximum of 9 employees.
b. Small Enterprise – Minimum of 10 and a maximum of 49 employees.
c. Medium Enterprise – Minimum of 50 and a maximum of 2450 employees.
Which of these sections does your business belong to?
Without the SMEDAN number, many MSMEs could miss out on funding opportunities like the ongoing Survival Fund NG.