Why small businesses do not participate in government contract in Nigeria

SMEs are said to be resposible for more than 70 percent employment in Nigeria and that the best way to encourage the growth of smes is to open up access to public contract. However studies have shown that SMEs are usually reluctant to sell to government. Reasons adduced for this cold attitude ranges from disproportional eligibility criteria to multiple tax deduction and from late payment to too many documentation. The only solution is adoption of e-procurement.