Contributions of SMEs

Contribution Of Small and Medium Scale Enterprises (SMEs) To The Economic Development Of Nigeria. 

Small and Medium Scale Enterprises are independent firms that recruit fewer employees compared to the public sector. They help in promoting and strengthening reforms. 

 The contribution of SMEs has been noticed as the major sustenance of the economy because of their ability in enhancing the economy's output and enhancing human welfare. 

 Multiple analyses have been employed to measure the significant contribution of SMEs to the economic growth of Nigeria. The coefficient of determination, however, points out that 98.2% of the development and growth of Nigeria is enhanced by SMEs. 

 The labor force or market, capital, and investment in the SME have a glaring effect on the economic growth of Nigeria. Therefore, there is a long-run relationship between SME performance and economic growth in Nigeria. 

 In the examination carried out, it is suggested that the government should make capital accessible to young Nigerians who exhibit substantial business ideas to reduce the unemployment rate in Nigeria. 

 Another way the government can further support the contribution of the SMEs is to make readily available, constant power supply and the sensitization of business owners on the operations of banks and interests should be deliberated on. 

 SMEs, have proven to be a significant tool embraced by developing countries especially Nigeria, to gain some level of socio-economic advancement. Since the lead-in of SMEs in 1945, in Nigeria, it has become a necessity at the onset; which has gained popularity and is expected to increase its importance in the future. 

Small and Medium Scale Enterprises (SMEs), play basic roles in the economic development of any economy. They may seem insignificant and trivial but they are the basis of any economically stable country. 

 The benefits of SMEs in a country are; provision of jobs at a low capital cost, creation of jobs for reducing income imbalance, etcetera. 

 In various countries, there has been a renewal of interest in the growth of SMEs. The SMEs increase regional and sectional economic balance through the dispersal of industries across sections and in different locations to promote efficient utilization of resources. 

 This points out the degree to which SMEs facilitate the development of Nigeria and its economy.