1. THE MICROENTERPRISE PACK SYSTEM
INTRODUCTION
All over the world, in both developing and advanced economies, small and medium enterprises play
significant roles in the process of industrialization and economic growth. Apart from increasing per capital-
income and output, SMEs create employment opportunities, enhances regional economic balance through
industrial dispersal and generally promote effective resource and utilization considered critical to
development and engineering of economic growth.
In Nigeria, the growth of SME has been constrained by inadequate funding and poor enabling
environment, poor management, poor Macro Economic performance etc, To ameliorate this challenges,
the government of Nigeria established the small and medium enterprises development agency of Nigerian
(SMEDAN) in order to stand as shock absorber for SMEs. It is important to note that the establishment of
SMEDAN in Nigeria is to help in solving the lingering problem of the dearth of long term funding and poor
business management skills which have inhibited the realization of the potentials of small and medium
scale enterprises as the engine and catalyst to the Nigerian economic growth and development.
ABOUT NYCC
The Nigerian Youth Chambers of Commerce (NYCC) was registered over 10 years
ago and have established presence in about 34 locations across 34 states of the
federation. NYCC is the umbrella body of youth entrepreneurs in Nigeria. It is a
youth focused organization with mandate to provide voice for the
underrepresented or marginalized youth entrepreneurs who are considered high
risk hence cannot access financial and non financial resources/services which
supports start-ups and business growth.
NYCC ENDORSEMENTS
The NYCC is endorsed by:
a. The federal ministry of trade
b. Ministry of youth
c. BOI (as a national BDS providers)

2. d. ITF
e. NACCIMA and
f. SMEDAN
WHAT WE DO
We are a business development service providers (BDSP). NYCC was established to
provide innovative solutions to problems challenging MSMEs through the provision
of:
a. Demand driven and market oriented business development services
b. Very importantly, we mobilize, organize, prepare, nature, engage and
manage youth entrepreneurs
c. We carry out policy advocacy for youth entrepreneurs
d. We engage stakeholders on behalf of youth entrepreneurs
e. We source for and distribute value added information (financial and non
financial) to youth entrepreneurs
f. Lastly, we organize periodic Start-up Enterprise Development Clinics (SEDCs),
TVET and Skills Acquisition Programme, Capacity Building, Entrepreneurship
campaign etc.
THE MICRO ENTERPRISE PACK
The micro enterprise pack is an informal financial option developed to reduce the
problem of access to finance and the high cost of finance experience in Nigeria. It
is an asset (equipment) based informal financial system which advances
equipments/machineries to potential entrepreneurs as against advancing cash.
Justification of the Micro Enterprise Pack
The government through the Central Bank of Nigeria, BOI, BOA etc has set aside
billions of Naira for MSMEs but unfortunately, MSMEs has been unable to access
these funds. The reason is simple. It is because the bulk of the 37 million MSMEs in
Nigeria are informal and the financial options which the government makes
available are all formal – Informal businesses for formal funds (Squire Peg in a
round hole)
Structure of the Micro Enterprise Pack
The pack is made up of three cardinal but integrated elements which are:
a. The Micro Leasing System

3. b. Micro Insurance System
c. Micro cluster for youth base enterprises.
The Micro enterprise Pack system is build around cluster where potential
entrepreneurs are provided with equipments which are leased via the micro leasing
arrangement and insured via the micro insurance system. This informal funding
arrangement requires no collaterals and has little or no bottle neck in accessing.
The beauty of it is that the default rate is very low because a continues M&E which
is a significant part of this pack will be vigorously implemented.
The micro leasing is a “pay small small” long term informal financing
options. This non collateral base finance adopts a repayment system similar to the
traditional “Adashi” system of fund collection. As a matter of fact, payment will be
through POS that will be taken to collection centers by our agents on weekly bases
as all the beneficiaries will be formalized as a precondition for the loan. Funds to
start-ups will be interest free but loans for business expansion will come with a
single digit interest rate.
Implication for SMEDAN
SMEDAN will achieve one of its mandate if
has the mandate of coordinating all the activities of the
If this pack is built into SMEDAN framework, it has the capacity to create one
million youth lead micro enterprises, 5 million jobs, 5000 BDSPs in addition to
positively contributing to our GDP.
One of our strategy of creating one million enterprise driven jobs is through our
Decade Campaign and our N100 Billion Naira Nigeria Youth Entrepreneurship
Development Funds. This funds is intended to help disrupt youth un-employment
through the business led solution for action.