Effect of small and medium scale enterprises on economic growth in Nigeria

Abstract

This paper recognised SMEs as source of economic growth in Nigeria. The paper identified SMEs’ contribution to Nigeria’s Gross Domestic Product (GDP) from 1982 to 2012, and carried out analysis on the effect of SMEs on economic growth in Nigeria, within the same period. Secondary data were collected from CBN Statistical Bulletin (2002, 2013, 2015), Central Bank of Nigeria, Annual Report and Statement of Accounts (2011; 2012), and National Bureau of Statistics –Job Creation and Employment Surveys (2012). Data were analyzed using Pearson Product-Moment Correlation Coefficient (PPMCC). The study disclosed that there is a significant and positive relationship between SME’s contribution to Nigeria’s Gross Domestic Product (GDP) and Nigeria’s GDP from 1982 to 2012. The paper recommended that Government should make good policies and carry out concerted effort towards the development of SMEs in order to make them serve as the source of economic growth in Nigeria.

Keywords: SMEs, economy, growth, effect