The Economic Benefits of a Public Sector Nano, Micro, Small and Medium Enterprise (nMSME) Grading Agency: Evidence from Nigeria

By: Saveshen Pillay, Zaakirah Ismail, Anywhere Sikochi and Charles Odii

Format:Print
| Language:English
| Pages:2

Abstract

This is a summary of our working paper exploring the possibility of creating a public sector small and medium enterprise (SME) grading system in Emerging Markets. Using research and insights from ongoing work with the Nigerian government, the first country in Africa to attempt to establish a public sector SME grading system, we showcase the potential economic benefits of the public sector model. These projected benefits can then be used as a proxy for the potential impact that can be derived by other emerging market economies wanting to implement a similar model. Given the challenges faced by most private sector rating agencies focusing on small and medium enterprises, we propose a public sector model as an alternative solution. The public sector model has been successful in Europe, and the work completed within the Nigerian project highlights how the model can be calibrated to be effective within an emerging market setting.