The Role of Small-Scale Businesses in the Economic Development of Nigeria

Abstract

This study is on the role of small and medium scale enterprises (SMEs) in the economic development of the country. The objective of the study is to determine the role of SMEs on the economic development of a country. The study has a sample size of 78. A total number of 110 questionnaires were distributed, out of which 78 were returned. Data was tabulated and analyzed before recommendations were made. Findings show that financial and government institutions have performed below expectations in terms of contributions to SMEs, thereby resulting in their poor contribution to the growth of the economy. The recommendations made are that: government should encourage infant industries by granting them tax holidays, government via the Central Bank of Nigeria, should prevail on commercial banks to review downwards interest rates and the Federal Government of Nigeria should as a matter of urgency strengthen and improve agencies such as National Poverty Eradication Program (NAPEP), National Directorate of Employment(NDE), etc. The study concludes that SMEs are the catalyst for any nation's economic growth. Government should therefore do more to uplift the standard of SMEs which will, in turn, contribute to the economic growth and development of the nation's overall development.