Prof. Moriam Aremu of the Faculty of Management Sciences, Al-Hikmah University, Ilorin has called for the urgent needs to rescue Small Medium Enterprises (SMEs), through market segmentation in Nigeria.
Aremu stated this yesterday at the 6th Inaugural Lecture of the University titled “Taking SMEs to the Next Level: Strategic Human Resources Management to the Rescue.’’
She said that the choice of the topic was informed by the failure of SMEs to improve the economy and sustain economic growth in Nigeria.
Aremu added that SMEs is one of the main issues that occupy the top agenda of the decision makers, being the plan to improve the economy and reduce unemployment through its support.
She urged SMEs owners to be ingenious as it plays a vital role in innovation and economic growth.
The University Don also disclosed that statistics has shown that SMEs contribute more than 55 per cent of Gross Domestic Products (GDP) and more than 65 per cent of total employment in developed economies.
She emphasised that this is reflected in swift adaptation to market changes and development of new products or services.
According to her, this would enable the SMEs owners to enter new market and strengthen competitiveness internationally.
She, however, called on major policy makers in different countries to identify appropriate strategies to support and develop SMEs.
“The importance of SMEs in a developing economy like Nigeria cannot be over emphasised.
“All this can be achieved through market segmentation. Market segmentation is recognised as a vital ingredient that can rescue SMEs.
“It is obvious that the nation’s economy is dominated by SMEs in agriculture, construction, manufacturing, commerce and industry, service, trading etc.
“SMEs play a significant role in national development by contributing 60 per cent of GDP and more than 70 per cent of total employment in developing economies”, Aremu said.
The lecturer who is the first female professor of Al-Hikmah University recommended that SMEs should focus more on internal strategic management variables such as training, recruitment process, capital base, profit, employment in order to enhance business performance and sustainability development. (NAN)