THE IMPECT OF SMALL AND MEDIUM SCALE ENTERPRISES ON ECONOMIC GROWTH IN NIGERIA
Abstract
ABSTRACT
This work examined the impact of small and medium scale enterprises on economic growth of Nigeria over the period 1986 to 2022. The specific objectives were to investigate the impact of small and medium enterprises on economic growth in Nigeria, to determine the impact of bank credits and lending rates on economic growth in Nigeria, and to study the impact of gross capital formation on economic growth in Nigeria. The secondary data for the study were collected from Central Bank of Nigeria Statistical Bulletin, indexmundi.com and World Development Indicators. In evaluating the objectives, the study employed the Ordinary Least Squares method of estimation. The key findings of this study showed that bank credit to small and medium scale enterprises is an insignificant factor that affects economic growth of Nigeria negatively. The study further found that lending interest rate, inflation rate and exchange rate affect economic performance positively and they are also statistically significant factors that affect economic growth and development for the period under review. Hence the study recommends that proper policies be put in place to improve bank lending to small and medium scale enterprises since it has a positive effect on economic performance.
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