SMEs Need More Encouragement

SMEs Need More Encouragement

Small and Medium Enterprises operating in the country believe that the capital market regulators comprising of the Securities and Exchange Commission (SEC) and the management of the Nigerian Stock Exchange (NSE) can do more to encourage SMEs.

The call was made by the managing director of OmatekVentures Plc, Mrs. Florence Seriki, during a press briefing on the performance of the company held Monday.

She said efforts of the regulators to get more SMEs to list on the exchange may not yield desired fruits if the firms were not encouraged vis a vis the provision of a viable enabling environment.

Her words, “If the SEC and NSE want more SMEs to come into the market for funding or to list their shares on the Exchange, they have to help to create an environment for these companies to thrive; they have to help in developing local policies and local markets, and ensure that the right policies and legal frameworks for their survival are put in place.

“And so, I will say that the regulators have a major role to play in encouraging these small companies and in assisting to drive the share prices of such companies. It is critical for those at the capital market to patronise local companies such as ours by making use of local brands, and promoting our products to their friends and colleagues.”

 

Her comments came at a time, the Director General of the Securities and Exchange Commission (SEC), Ms. Arunma Oteh, said the regulator was trying to encourage more SMEs to list in order to boost local and foreign participation in the bourse.

Oteh said, “We aspire to attract to the market, companies operating in sectors that have little presence in our capital market and among these are the SMEs, which account for 0.06 per cent of our stock market capitalisation.

“Following the example of China and other BRIC countries, we aim to attract SMEs (only 12 of which are currently listed) to list as this will create more jobs and encourage entrepreneurship in the country.”

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