The Role of Government towards small scale business development in Nigeria

 

The Role of Government towards small scale business development in Nigeria

The government performs the following roles towards small scale development in Nigeria.

1.     Economic Development Programs: Some government programs help businesses start, grow and relocate to specific areas. In some ways, local, county and state governments compete with each other for jobs. They do this by offering start-up incentives and taking steps to create a “business-friendly” environment. These steps include tax credits, worker training, free land, zoning changes, low-interest loans, infrastructure improvements and help with fast-tracking licensing and permitting.

2.     Loan Guarantee Programs: Government agencies such as the U.S. Small Business Administration provide loan guarantees to small businesses and encourage local banks to work with start-ups or established companies that want to expand. Talk to your banker about state or federal loan programs that offer low interest rates. If you are a woman, minority or operate a business in select industries, additional loan opportunities also may be available. Contact your state's economic development office to learn if it has loan programs.

3.     Research and Development: The federal government provides grants to academic institutions working to develop new technologies that will benefit industry with the caveat that the institutions share the technologies with industry. In some instances, the government provides grants to private companies making a new product or service that will improve a vital area of an economy, such as transportation, energy, agriculture or communications. Some states also fund research and development projects and work with private investors and the federal government to raise funds.

4.     Infrastructure Improvement Funding: Business does better when it can move raw materials to factories efficiently and get finished goods to plants and markets quickly. Governments help improve the infrastructure needed for businesses to succeed. This includes building and maintaining roads, bridges, rail lines, airports, seaports, energy transmission lines and telecommunications systems.

5.     Education and Training Programs: To ensure businesses have access to trained workers, governments provide free schooling for primary and secondary students, grants and loans for higher education and worker training programs. Governments often work with trade schools, community colleges and universities to provide free worker training.