The Challenges and Opportunities of Establishing a Small and Medium-Sized Enterprise (SME) Post-COVID in Lagos, Nigeria

The COVID-19 pandemic significantly disrupted the global economy, creating profound challenges while simultaneously generating new opportunities for small and medium-sized enterprises (SMEs), particularly in developing economies such as Nigeria. This study critically examines the post-COVID business environment in Lagos State, focusing on the challenges and opportunities associated with the establishment and growth of SMEs. Key challenges identified include limited access to finance, supply chain disruptions, regulatory complexity, and heightened market uncertainty. Conversely, emerging opportunities such as accelerated digital adoption, expanding e-commerce platforms, shifting consumer demand, and targeted government interventions are explored as potential enablers of SME resilience and growth. The central research question addressed is: What are the major challenges and opportunities influencing the establishment and growth of SMEs in Lagos Nigeria in the post-COVID era? Adopting a mixed-methods research design, the study integrates quantitative and qualitative approaches to generate robust empirical evidence. Survey data were collected from 234 SMEs across multiple sectors in Lagos State, complemented by in-depth interviews with key SME owners and relevant stakeholders. Data were gathered using structured questionnaires and semi-structured interview guides, and analysed through statistical techniques and thematic analysis, with triangulation employed to enhance validity and reliability. The findings reveal that access to capital, supply chain vulnerability, and regulatory burdens remain significant constraints on SME development. However, increased adoption of digital technologies has enhanced market reach, operational flexibility, and resilience against future disruptions. The study further identifies public–private partnerships and well-targeted government support programmes as critical drivers of sustainable SME growth. This research contributes to theory by extending post-crisis entrepreneurship and SME resilience literature within the under-researched Nigerian context. It contributes to practice by offering evidence-based insights to SME owners on adaptive strategies, digital transformation, and innovation-led growth. From a policy perspective, the study provides actionable recommendations for improving SME-focused financing frameworks, regulatory reforms, and institutional support mechanisms to strengthen enterprise survival and economic recovery in post-pandemic Nigeria.