Impact of Small and Medium Scale Enterprises Development on Poverty Reduction in Nigeria

Abstract

Small and Medium scale business (SMEs) are considered to be the engine and tool of growth and development of modern economies and serve to provide more employment opportunities to a large portion of the population in a given economy and this leads to poverty reduction in most developing countries. This study examines Impact of small and medium enterprises development on poverty reduction in Nigeria. Two (2) research questions were posed for the study and two hypotheses formulated in line with the goals. 142 questionnaires were administered randomly to the entire employee population of the SMEs companies that registered with SMEDAN in Lagos states- Nigeria. The sample size was determined using Taro- Yamane (1967) formula. Data was analyzed using manual and electronic based methods with the aid of data preparation grid and statistical package for the social sciences, (SPSS) statistical package version 21.0. The study made used of statistical tools which include: analysis of variance (ANOVA), correlation efficient and simple regression analysis in testing hypotheses where applicable. the study revealed that provision of credit facilities affect small scale business creation. It was also revealed that government policies affect SMEs income- generation. The study Shows that small scale business (entrepreneurship) has a positive impact on poverty reduction. The study recommends that there is urgent and dire need for the government to revamp the small business sector of the economy in order to redress the growing unemployment rate in the country, reduce poverty level, enhance standard of living and stimulate economic growth and development among the populace.