THE CONTRIBUTIONS OF SMALL SCALE ENTERPRISES TO THE ECONOMIC GROWTH OF NIGERIA

Abstract

This study critically examined the contributions of small and medium scale enterprises to the economic growth of Nigeria and how SMEs can be promoted. Since SMEs are the backbone of the economy, it is essential to adequately promote and sustain their activities in order to enjoy a developed and stabilized economy. Concerning methodology, the researcher used both primary and secondary sources of data for the study. Primary source of data formed the basis for data analysis as questionnaires were issued to officials of Small and Medium Scale Development Agency of Nigeria (SMEDAN). Chi-square at a significance level of 0.05 was also used to test hypothesis developed for the study. Findings from the study revealed that in actual fact, SMEs contribute tremendously to the growth of the economy via increase in Gross Domestic Product (GDP). The production of goods and services, creation of jobs, innovation of newer products and revenue generation abilities of SMES have helped the economy of Nigeria since Nigeria gained her independence in 1960. The government should minimize tax burdens imposed on SMEs and provide adequate power supply to create enabling environment for SMEs to survive and be adequately promoted.