Thursday, February 04, 2016 11:00PM / Dexter Analytics
In 2015, global growth suffered major setbacks as markets witnessed increased volatility and sustained decline in crude oil prices, amongst other major headwinds. Global growth across various geographical demarcations varied in the course of the year. For the developed economies, which were spearheaded by the United States, there was relative improvement as strong investment activities supported growth.
For emerging markets which comprise of; Asia, Africa, Middle East and Latin America, the continued slowdown in growth amongst others things laid emphasis to the fact that factors such as lower commodity prices and tighter external financial conditions, China’s new normal, and economic distress are capable of distorting growth.
The Nigeria Economy too was in no way detached from this reality as it recorded the lowest quarterly GDP growth rate since the post rebasing exercise. As the year 2016 unfolds with equities markets across global economy recording the worst possible start to a year in the last decade, the question is, will the status quo remain in 2016?
With a bias for MSMEs in this report, an extensive coverage of the global and domestic arena is of relevance because of the increasing integration of the global economy - small businesses are not immune to this. Many start-ups are on the lookout for funding (venture capital) which mostly comes from other parts of the world and the current restrictive currency regime of the CBN might be a major impediment. Businesses that rely on importation of goods and raw materials in their operations are not left out either.
Thus, we explored the rise of new age entrepreneurs and their innovative start-ups in Nigeria. Many of these businesses, mostly online, have become household names and they are helping to develop and implement solutions that have impacted both commercial and social/developmental activities. In addition, these ventures are helping to solve some of the biggest challenges in the Nigerian economy – poverty and unemployment, and they also contribute to the growth of the economy.
In this report, we beamed our searchlight on MSMEs in Nigeria and explored methods of alternative financing available to them.