Small-scale enterprises have and will continue to
play a vital role in economic development of both developed and
developing countries, small business is considered the driver of
economic growth. This role includes infrastructure development,
employment, reduction in poverty, wealth creation and
development of human capital. Government of African Nations
have developed and implemented various policies aimed to
stimulate and grow entrepreneurial development; however these
businesses still face various challenges during the introduction
stage as well as the growth stage of the businesses. This paper
examined the challenges that small-scale enterprises face in
Nigeria during the early stages and also explore opportunities
that these businesses could derive from their immediate
environment. The study employed cross sectional survey method
and analysis of variance (ANOVA) to analyze seventy one (71)
copies of questionnaire returned from the field. The findings
revealed that lack of access to finance and unfavorable
macroeconomic environment still remain the major challenge
faced by small businesses in Nigeria and that age and size of the
businesses play significant role in all of this. The study therefore
recommends that the SMEs funding agencies should not adopt a
blanket financing option for all categories of business in terms of
age and sizes within the economy. Rather, policies aimed at
promoting the performance and growth of micro and small
enterprises should adopt a sectional approach. Thus, resources
for each category would address the most critical determinants of
performance and growth in focal sub-category such as micro,
small or medium enterprises