Promoting strong Collaboration among Enterprise Support Organisations (ESO) in Nigeria  is critical to building MSME Investment readiness that can unlock more impact capital, according to a new report, The Mapping and Analysis of Enterprise Support Organizations (ESOs) in Nigeria, by the Impact Investors Foundation. This pivotal study, officially launched in Lagos at the inaugural Nigeria ESO Forum on Thursday, offers an in-depth assessment of the current landscape of ESOs across key sectors in Nigeria, highlighting their crucial role in supporting micro, small, and medium enterprises (MSMEs), challenges, opportunities  and identifies funding sources to enhance their long-term viability. 

The extensive study of the enterprise support ecosystem in Nigeria conducted with funding from  UK International Development from the UK Government in the second phase of the RISA Fund’s Sustainable Systems for Research and Innovation Financing Project (SSRIF II), involved key informant interviews with representatives from government institutions such as the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Bank of Industry (BOI), among others, and online surveys with ESOs in the private sector.

Providing the micro, small, and medium enterprises (MSMEs), which comprise 96.7 percent of businesses in Nigeria, with funding, knowledge, and opportunities to thrive should be the top priority of the Nigerian government as these businesses provide 87.9 percent of employment, and contribute about 49.7 percent to the national GDP.  This study shows that many ESOs struggle to provide effective business development assistance due to challenges in financial stability, governance, and operational systems.

“Creating an enabling environment for Enterprise Support Organisations (ESOs) is vital to building a robust ecosystem for Nigerian MSMEs to contribute towards economic development. The insights from this report will be critical for both policymakers and stakeholders working to strengthen Nigeria’s MSME ecosystem,” said Etemore Glover, CEO of Impact Investors Foundation. “Our findings provide a clear roadmap for addressing the existing gaps and building a more supportive environment for entrepreneurs across the country.”

Commenting on the findings, Alice Dada, Technical Country Lead, Nigeria,  RISA Fund, said, “This report provides a comprehensive view of Nigeria’s ESO ecosystem, mapping key players, their innovative offerings, and strategic priorities. By strengthening ESOs, we can unlock greater opportunities for MSMEs, foster economic growth, create jobs, and advance innovation across the country.”

Key findings from the report include:

• Focus Areas of ESOs: ESOs in Nigeria predominantly offer services in Training and Capacity Building, Access to Funding, and Technology & Product Development.
• Market Development and Management Consulting: The survey revealed that 68% of respondents prioritise Market Development, while 64% focus on Management Consulting, pointing to a strategic emphasis on expanding markets and improving organizational efficiency.
• Business Development and Incubation: Business Development Services and Business Incubation/Acceleration were each cited by 52% of respondents, underscoring the importance of nurturing innovation and supporting start-ups in Nigeria.
• Gaps in Financial and Regulatory Support: The report highlights potential gaps in the provision of Financial Management (4%) and Legal Services (8%), areas critical for sustainable growth in the MSME sector.
• Critical Challenges: A staggering 80% of enterprises have limited access to capital, while 84% cite the high cost of infrastructure as a major barrier to success. Additionally, 72% of enterprises are not adequately prepared for the market, emphasising the need for improved readiness programs.
• Recommendations: The report also highlights the challenges MSMEs face in adopting new business models, which limits their competitiveness in an increasingly digital and global market. 

The full report is now available for download on https://bit.ly/ESOMAPPING. For more information, please contact uunimkeulayi@impactinvestorsfoundation.org.