Abstract
This research work studied the effect of economic depression on the growth of small and medium scale enterprises (SMEs) in Awka South Local Government Area, Anambra State and their contribution to economic growth. This research focuses on the extent to which economic hardship affects the operations and activities of SMEs in Awka South. The study was conducted in Awka South Local Government Area, Anambra State. Data for the study were collected from a representative sample of one hundred (100) SMEs entrepreneurs in the area. A systematic sampling technique would be used to select the respondents. The result of the analyses showed that economic depression impairs the growth of SMEs in Awka South Local Government Area, Anambra State. There should be adequate provision of infrastructures, government should give special consideration to SMEs by patronizing SMEs output, government should attract international financial institutions towards the growth and development of small scale industries in Awka South and Nigeria at large etc. 
 
 JEL: L20; L23; L53
 
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Highlights
The financial crisis can be traced to a decade of low interest rates in the United States of America during the 1990s, which in turn spurred liberal lending practices by commercial banks to clients that had no ability to repay loans, thereby compromising the quality of loans held by financial institutions
1.3 Objectives of the Study The main purpose of this study is to examine the effect of economic depression on the growth of small and medium scale enterprises in Awka South, taking into consideration various conditions such as economic, political, social, psychological etc. under which Small and Medium Scale Enterprises (SMEs) operate
2) Economic depression does not hinder the growth of SMEs in Awka South Local Government Area, Anambra State
Summary
The financial crisis can be traced to a decade of low interest rates in the United States of America during the 1990s, which in turn spurred liberal lending practices by commercial banks to clients that had no ability to repay loans, thereby compromising the quality of loans held by financial institutions. As the US started experiencing an economic slowdown and rising interest rates around that time, sub-prime mortgage defaults began soaring, and the securities built around these debts, including property prices began losing value with contagion effect. The resultant strain from the financial crisis led to two critical consequences internationally: (1) Credit Crunch in the USA and, (2) a liquidity crisis arising from the uncertainty over which institutions held problem debt and its actual value, so that banks have been prompted to restrict lending to one another, creating a major liquidity crisis in the global financial market (Ajakaiye & Fakiyesi, 2009)
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