This post will discuss the eligibility criteria for the SMEDAN MSME registration. For small and medium business owners, funding poses a real challenge to effectively running their operations. SMEs are the core of the economic sector and are also responsible for driving innovation and competition for any economy.
While capital plays a huge role in fast-tracking the early departure of these businesses or failure, there has been a list of programs set up either by the government or financial institutions such as SMEDAN whose aim is to provide financial assistance to SMEs.
What is 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. The Agency positions itself as a One-Stop-Shop for MSME Development.
Micro Enterprises are included in the clientele of the Agency since they form the bedrock for SMEs. The goal is to have a structured and efficient micro, small and medium enterprises sector that will enhance the sustainable economic development of Nigeria. What many SMEs are unsure of are the eligibility criteria for registering with SMEDAN.
The vision and mission of the SMEDAN are to facilitate a programme that opens its doors to micro, small and medium entrepreneurs and investors to all resources required for their development. The establishment of SMEDAN is triggered by the need for the development of Nigeria’s MSMEs in a structured and efficient manner.
The SMEDAN program was created to curate all the formal databases of all the MSMEs in Nigeria. When each of these business owners completes a registration process, they will be allocated a Unique Identification Number (UIN) for their registered business.
Apart from the unique number, the registered businesses are also eligible to receive a SMEDAN certificate. Your business also gets an opportunity to access SMEDAN’s Conditional Grant Scheme. This scheme provides up to N50,000 for SMEDAN-registered enterprises.
Another benefit of this registration is the eligibility for priority funding; the SEMEDAN serves as a link between MSMEs and different finance bodies; it gives priority to registered businesses. That means if your business is registered, you can access financial support from established financial institutions.
Objectives and Functions of SMEDAN
· One of the objectives of the SMEDAN is to initiate policy ideas to facilitate the development of SMEs.
· To promote different development programs, instruments, and support services. All of these are aimed at accelerating the development of MSMEs in Nigeria.
· They also give MSMEs access to financial sources, both internal and external wit,h the required technology and technical skills to develop the running of the business. They also link MSMEs to larger private enterprises that can provide funding and technical support to these businesses.
· SMEDAN was created to make a thriving environment possible for the different classes of MSMEs in Nigeria. It achieves this by working in tandem with several institutions within both the public and private sectors.
· Serves as a leading organisation to deal with issues of poverty by creating a favourable environment. This is achieved by the industrialisation of rural areas and creating jobs to enhance the livelihood of Nigerians.
· Monitor, stimulate, and coordinate MSME development in Nigeria.
Eligibility Criteria for SMEDAN Business Registration?
One question that begs an answer is “what are the eligibility criteria for the registration?” The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) registration is open to Micro, Small and Medium Enterprises, also known as MSMEs.
The Micro, Small, and Medium Enterprises operating in Nigeria include Artisans, traders, Tailors, Fashion Designers, Spare Parts Dealers, hoteliers, restaurant owners, shoemakers, barbers, and so much more! You are qualified to register if you run a business or any form of business by law is legal.
And if your business falls under the definition of Micro, Small, and Medium Enterprises, then it is eligible. However, the business must exist and operate within Nigeria. And, the industry or sector which your business operates doesn’t matter. Once your business fulfils these conditions, then you are eligible to register for SMEDAN.
However, your business should have in employment about 250 employees or less. Here is a proper break down so that you can tell which section your business belongs to:
a. Micro-Enterprise – Minimum of 1 and a maximum of 9 employees.
b. Small Enterprise – Minimum of 10 and a maximum of 49 employees.
c. Medium Enterprise – Minimum of 50 and a maximum of 2450 employees.
How to Register for SMEDAN
Without the SMEDAN number, you are more likely to miss out on funding opportunities like the Survival Fund NG.
• To register, you have to visit the website: https://smedanregister.ng
• Next you would have to fill the form the comes up
• Provide all details – name, email, business details, BVN – in the form that comes up next
• Exit from that page and go back to the SMEDAN homepage
• Enter your login details (the email used in creating the account and the password) to view your certificate
• You will receive an email shortly confirming your SMEDAN registration.
What Are the Benefits of Registration?
Registering as an MSME on this database will let critical stakeholders in the private and public sectors provide you with the necessary support, policies, and programs tailored for you. Only registered MSMEs will be the direct beneficiaries of various SMEDAN programs, as well as other public and private sector organizations. The registration exercise is simple and easy to complete within minutes.
Creation of a SMEDAN Unique Identification Number (SUIN);
Access to the SMEDAN Conditional Grant Scheme (Grants of up to N50,000 per MSME);
Priority funding from public and private sector financial institutions, including International Donor Agencies;
Empowerment Programs and Entrepreneurship Training
Business Insurance and Many More