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Rivers State University, Port Harcourt.
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| Title: | Impact of Small and MediumScale Enterprises (SMEs) on Economic Growth in Nigeria (2001 2020) |
| Author(s): | OSAROEKIYE James Junior |
| Abstract: | This research paper set out to study the impact of Small and Medium–scale Enterprises (SMEs) on economic growth in Nigeria. The motive for carrying out this research is to address the lack of funds given to these businesses by the financial market, which is baffling because as the study and other literature reviewed showed, SMEs are the bedrock for economic growth in developing countries. This study goes further to analyze the impact of SMEs output and the Financial Market loans on the real Gross Domestic Product (used as a proxy to represent economic growth). Employing Error Correction Model (ECM) to analyze the data of the aforementioned economic phenomena collected from the Central Bank of Nigeria (CBN) statistical bulletin, from 2001–2020. The results of the analysis found a positive relationship between SMEs and its financial market loans, and output (Real GDP), but having no statistical significance. The result clearly indicates that SMEs in Nigeria contributes positively toward the overall economic performance of the economy. Based on that this positive relationship possesses no statistical significance, this paper recommends that the government cut down on fees, laws, rules and regulations that are harmful to the establishment and progress of SMEs. The study goes further to recommend adequate infrastructures, skillacquisition training, and sanctioning of financial institutions that discriminate against SMEs when giving loans to businesses in order for the economy to realize this potential. |
| Keywords: | Economic Growth, Small and Medium–scale Enterprises, Financial Market, Loan, Labour Force |
| Journal: | Economic and Social Science Review (ESR) |
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