Small And Medium Enterprises (SMES) Development and Economic Growth in Nigeria

Ogunsanwo, Abayomi Olusegun & Fatogun, Olukunle Ibukun, Volume 3 Issue 2, December 2022 Pages 193-202, Published: 2022-12-23

Abstract

Daily efforts by governments to promote economic development include developing the SME sector. The purpose of this study was to examine how Nigeria's small and medium-sized business development affected national economic expansion. Asset base and SME aggregate capitalization served as proxies for measuring SME development, whereas Gross Domestic Product served as a proxy for measuring economic growth. Time series data for the years 2000 to 2018 were gathered from the National Bureau of Statistics 2018, the Central Bank of Nigeria Statistical Bulletin 2018, and the National Survey of Micro, Small, and Medium Enterprises (MSMEs) 2013 and 2017 carried out by the Small & Medium Enterprise Development Agency of Nigeria (SMEDAN). Using E-view version 9, the Autoregressive Distributed Lag Model (ADRL) and Error Correction Model (ECM) were used for data analysis. The findings revealed that the aggregate asset base and aggregate capitalization of SMEs have little or no significant influence on economic growth. It was recommended amongst others that more efforts should be put in place by Government to promote the development of SMEs and prove the necessary funding and conducive environment for SMEs to thrive