Small and Medium Enterprises (SMEs) and the Economic Growth of Nigeria

Joseph M. Udoikah & Emmanuel A. Ndaeyo

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Abstract

The study was undertaken to examine the contributions of Small and Medium Enterprises (SMEs) to the economic growth and development of Nigeria, to determine the impact of funding on the growth of Small and Medium Enterprises and to highlight the strategies adopted by the Government towards the promotion of SMEs. Endogenous Growth Theory propounded by Paul Romer and Robert Lucas Jnr in the 1990s was adopted to guide the Study. At the end of the Study, it was revealed, amongst others, that the Government has not adequately given financial support towards the promotion of Small and Medium Enterprises, that Small and Medium Enterprises have the capacity to boost economic growth and development but hampered by inadequate government support. Hence, it was recommended, amongst others, that government should ensure adequate funding of SMEs. Also, government should grant tax holidays to SMEs within their first two years of operation to enable them survive and withstand competition and ensure capacity building through vocational training of the SMEs operators.

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