More than 28 million Micro-Enterprises to earn less than 50, 000 in 2021

… Representing more than 50% of the projected 54 million MEs for 2021

Data available to MSMEsToday.com from the National Bureau of Statistics (NBS) reveals that more than 28 million Micro-Enterprises (MEs) will report a monthly average turnover of less than N50, 000 in 2021. This represents an increase of 59.07% when compared with 26 million MEs that reported monthly average turnover of less than N50, 000 and 50.94% of the total micro enterprises projected for the period.

The analysis further show that the expected increase in monthly average turnover of more than N50, 000 by MEs in 2021, is attributable to the projected decline in the number of MEs that will report monthly average turnover of less than N900,000 and above N1,000,000 respectively is due to the present Covid-19 pandemic which resulted in economic downturn. The number of MEs to earn a monthly average turnover of less than N900, 000 is projected to drop from 46,575 to 34,012 while the number to earn monthly average turnover of above N1, 000,000, will also drop from 311,499 in 2017 to 273,203 in 2021.

On the other hand, the number of MEs to earn monthly average turnover between N400, 000 and N500, 000 is projected to triple during the period under review. This has been the trend since 2013. In 2013, 162,059 Micro-enterprises reported monthly turnover between N400, 000 and N500, 000 and this increased to 589,607 in 2017 and projected to reach 2.1 million.

Our analysis also show that micro enterprises that will earn monthly average turnover below N50, 000 and N500, 000 will accounts for the 98.1% of the total of about N54.9 million projected for the period under review while the remaining 1.9% account for the number of MEs projected to earn monthly average above N500, 000 to more than N1, 000,000.

Considering the levels, 28 million MEs is projected to earn monthly average turnover less than N50, 000, represents 50.94% of the total number of MEs considered during the period under review. Next in magnitude to less than N50, 000 turnover is MEs expected to earn monthly average turnover between N50, 000 and N100, 000. The number of MEs to earn monthly average turnover between N50, 000 and N100, 000 is projected to increase from 8.5 million in 2017 to 16.1 million in 2021. This accounts for 29.22% of the 54.9 million of MEs projected for 2021.

Micro enterprise projected to earn between N100, 000 and N200, 000 occupied the third place with increase in the number of MEs from 3.3 million in 2017 to about 5.0 million in 2021, this represents 9.1% of the 54 million MEs considered for 2021. MEs that are projected to earn between N800, 000 and N900, 000 occupied second to the last position, followed by MEs expected to earn monthly average turnover between N700, 000 and N800, 000.

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