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How MSMEs can register with SMEDAN

by Samuel Moore

August 31, 2020 27

Recently, SMEDAN launched a mass registration program for MSMEs nationwide. The aim is to provide support to small and medium scale enterprises within the country. It is expected to provide SMEDAN with a comprehensive list of MSMEs to ensure that it carries out its functions effectively.

Asides helping the body achieve its aims, MSMEs also stand to enjoy several benefits from the process. In this post, we will tell you how to register with SMEDAN, who is eligible, and what you stand to enjoy. Before that, let’s find out a little more about SMEDAN.

Objectives and Functions of SMEDAN

SMEDAN is an acronym for Small and Medium Enterprises Development Agency of Nigeria. This body was established in 2003 by the Federal Government to promote and develop MSMEs in the country.

SMEDAN has several objectives including:

a.      Stimulate, monitor, and coordinate the development of MSMEs in Nigeria.

b.      Articulate and initiate policy ideas to facilitate the growth and development of MSMEs.

c.       Promote and facilitate development programs, support services, and instruments that will accelerate the modernization and development of MSMEs.

In line with these objectives, SMEDAN performs several functions. These include:

a.      Serves as a vanguard to tackle poverty, for rural industrialization, create jobs, and enhance livelihood.

b.      Link up MSMEs with both internal and external finance sources, technical skills, and appropriate technology. They also ensure that MSMEs have access to help from larger enterprises.

c.       Promote and provide access to different industrial infrastructures like incubators, layouts, and industrial parks.

d.      Serve as an intermediary between the Government and MSMEs. This is one of the reasons why SMEDAN is also referred to as the voice of MSMEs.

e.      Helps to create an enabling environment for MSMEs to thrive by working several institutions in the private and public sector.

It is in line with these objectives and functions that SMEDAN initiated the MSME registration program. What exactly is this the SMEDAN MSME registration program? Let’s look at this in the next section.

About the SMEDAN MSME Registration Program

Since the Director-General of SMEDAN, Dr. Umar Dikko Radda made the announcement, the airwaves have been buzzing. Several business owners have been asking what the program is about. Why they need to register and several other questions. Well, that’s why we wrote this article, to tear open the veil and provide clarity about the program and its benefits.

The MSME mass registration program is targeted at creating a database of all the Micro, Small, and Medium Enterprises in Nigeria. This includes traders, artisans, fashion designers, tailors, spare part sellers, restaurant owners, etc.

Upon registration, each of these outfits will receive a Unique Identification Number. Possessing this number comes with several benefits, especially to the business owner. One such benefit is the access to the Conditional Grant Scheme from SMEDAN providing up to N50,000.

Asides this, registered MSMEs will also be eligible for priority funding from different financial institutions. Sourcing of priority funding extends to other larger enterprises and institutions in the private and public sectors.

Who can register with SMEDAN?

By now, you must be wondering who qualifies to register with SMEDAN. This mass registration exercise is open to every Micro, Small, and Medium Enterprise that operates in Nigeria. There is no sectorial discrimination. As long as you fall under the umbrella of MSMEs, then you are eligible.

This is a safe place to define MSMEs so you can know if you qualify as one or not. It is important that we define this from the Nigerian perspective to get a clearer picture.

In Nigeria, any business that has less than or equal to 250 employees is referred to as an MSME. To break it down further, let’s look at the number of employees each of these businesses should have:

a.      Micro Enterprises – Between 1 and 9 employees.

b.      Small Enterprises – Between 10 and 49 employees.

c.       Medium Enterprises – Between 50 and 249 employees.

With this definition, you should have a clear picture of which category your business falls under. Overall, if you own and run a business in Nigeria, then you can register with SMEDAN.

Why should you register with SMEDAN?

Now that you know your eligibility status, you are probably wondering why you should register. If you are in these shoes, then you are not alone. What exactly will you gain from registering with SMEDAN?

In case you didn’t know, SMEDAN organizes several programs to support MSMEs every year. These programs are not just targeted at raising funds, they help MSMEs to become more efficient. When you register, you gain priority status making you a direct beneficiary of these programs.

Also, you get access to various measures of support for your business. SMEDAN will make use of this database in the nearest future to provide funding, training, empowerment, and other facilities to MSMEs. It will also use this as a reference to link businesses to lending institutions at different levels. Do you now see why you should register?

Benefits of registering with SMEDAN

Are you pumped up about registering with SMEDAN already? If you aren’t, reading through the benefits that you stand to enjoy should get you there. The first thing you should know about the process is that it is very easy. Another thing you should know is that it costs you nothing, it is completely free of charge.

Now, let’s look at the benefits that you will enjoy:

a.      Access to SMEDAN’s conditional grant scheme which gives you up to N50,000.

b.      SMEDAN Unique Identification Number (SUIN).

c.       Business insurance.

d.      Access to entrepreneurship training and empowerment programs from SMEDAN and its partners.

e.      Priority funding from different institutions as well as International Donor Agencies.

These are just some of the benefits that you stand to enjoy, there are many more.

How to register

The process is very simple. You can do it by yourself from your computer or smartphone. Simply click here to begin the registration process.

Conclusion

Now you have all the details about the MSME mass registration program by SMEDAN. Remember, the process is very easy and free of charge. You stand to gain a lot from registering with SMEDAN. If you have any questions, drop them in the comments section.