Smes Failures

Smes Failures

ECONOMIC IMPLICATIONS OF CONSTANT POWER OUTAGES ON SMES IN NIGERIA
International Centre for Basic Research, 20 Limpopo Street, FHA, Abuja College of Engineering and Engineering Technology, Department of Electrical and Electronic Engineering, Michael Okpara University of Agriculture, Umudike, Abia State been identified [2]. A particular finding revealed the high cost of providing back-up energy (partly infrastructural) for SMEs which sometimes is as critical as three times the cost of publicly supplied electricity [3], [4]. In Nigeria and perhaps generally, SMEs classification is done on the basis of capital investment and employed labour force while other criteria could be the annual turnover or gross output [5]. Until very recently, energy was rarely cited as one of the problems militating against the development of SMEs in Nigeria and elsewhere. This study is built on the argument that, unlike larger businesses, the establishment and operation of SMEs promotes economic development which by extension, boosts a country’s GDP number [6] (see Fig. 1). A separate study identifies this link (between SMEs and GDP) but could not establish if it is actually responsible for economic growth [7] while another study presents a decreasing link of 51%, 39% and 16% of GDP being produced by SMEs in high-income, medium income and low-income countries respectively [8]. Elsewhere, it has been confirmed that SMEs were responsible for pulling the US out of economic slump and can therefore, serve as any other economy’s talisman to economic growth [9], [10]. This study is also important because Nigerian SMEs account for some 95 per cent of formal manufacturing activity and 70 per cent of industrial jobs [11].
#

UB Akuru# and OI Okoro+

+

ABSTRACT This paper is concerned with the unabated epileptic power (electric) delivery which is seen to be periodic with a struggling generation capacity and losses-prone inefficient transmission network in Nigeria. Ordinarily, it should mean...

View Full Essay