EFFECT OF SMALL AND MEDIUM SCALE ENTERPRISES ON THE ECONOMIC DEVELOPMENT OF NIGERIA

This study seeks to look into the role of Small and Medium Scale Enterprises in Economic Development of Nasarawa State, Nigeria. A total of 60 questionnaires were administered among respondents from Lafia, Akwanga and Keffi. Targeted respondents comprised individuals at managerial level and direct tradesman. Also, purposive sampling method was used to select the class of small scale business companies for the questionnaires administered. Data collected were analysed using chi-square method of analysis. The findings revealed that SMEs have significant relationship with poverty reduction employment generation and improved standard of living of people in Nasarawa State. Based on these findings, it is recommended that; Government at all level be it federal, state or local government council should encourage and support agencies that promote small and medium scale enterprises in the country. Also, Small and medium entrepreneurs should endeavour to acquire appropriate skills that would enable them to manage the business profitably. It was also recommended that, entrepreneurship education/ programme should be made mandatory among the students as well as young graduates and also, banks as well as other financial institutions should make loan advancement towards entrepreneurs much accessible and less stiff. Nigerian government should also strive to put in place infrastructures and policies that will enable small and medium business operators to carry out their businesses without much difficult and high expenditure hence enable them maximize profit since it’s the reward of entrepreneurship.