Nigeria’s business landscape is diverse, encompassing businesses of all sizes. To
effectively identify your business category, here’s a breakdown of nano, micro, small, and
medium businesses based on annual turnover, workforce size, and operations.
● Nano Businesses
Characteristics:
- Annual Turnover: Less than ₦3 million.
- Manpower: 1–2 individuals, often family-run.
- Operations: Informal, minimal infrastructure.
Examples:
Street vendors, roadside food stalls, mobile repairers, subsistence farmers.
● Micro Businesses
Characteristics:
- Annual Turnover: ₦3 million–₦25 million.
- Manpower: 3-9 individuals.
- Operations: Small-scale
Examples:
● Tailoring shops, barbershops, small retail kiosks, poultry farms.
● Small Businesses
Characteristics:
- Annual Turnover: ₦25 million–₦99 million.
- Manpower: 10-49 employees.
- Operations: Registered, structured operations.
Examples:
Supermarkets, small manufacturers, logistics firms, hospitality services.
● Medium Businesses
Characteristics:
- Annual Turnover: Over ₦100 million but under ₦1 billion.
- Manpower: 50-199 employees.
- Operations: Highly formalized, regional reach.
Examples:
Mid-sized manufacturers, large-scale farms, boutique hotels, tech startups.
Why It Matters
Knowing your business category helps access grants, comply with regulations, and plan for growth. Regardless of the type of business you run, it is essential to register with SMEDAN to access the support needed to scale your business from Nano to Micro, Small, and eventually Medium.