SMALL_AND_MEDIUM_SCALE_ENTERPRISES_CONTR.pdf - Islamic University ISSN 2617-6513(Online ISSN 2409-0263(Print IUMI Vol 6(4 47-55 2019 http\/www.iuiu.ac.ug

SMALL_AND_MEDIUM_SCALE_ENTERPRISES_CONTR.pdf - Islamic...

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Islamic University Multidisci pl inaryJournal IUMI V ol. 6(4), 47-55, 2019 ISSN: 2617-6513 (Online), ISSN: 2409-0263 (Print) 47 SMALL AND MEDIUM SCALE ENTERPRISES AND ECONOMIC GROWTH IN NIGERIAN Godwin Emmanuel Oyedokun 1 and 2 Ezekiel Elton Micheal Micah 2 1 Department of Accounting, Faculty of Administration, Nasarawa State University, Keffi, Nigeria 2 Department of Management Sciences, Faculty of Administration, City University, Benin Republic 1 [email protected], +234-80-3373-7184; 2 [email protected], +234-80-3200-7869 Abstract The study assesses the SMEs contribution to the growth of Nigerian economy. The population of 17.3million SMEs and the value represents the aggregates of all the SMEs in Nigeria. The study used time series data which was collected from CBN statistical bulletin, NBS, and SMEDAN. The study period covered 2006-2017 (. The study used different statistical tools ranging from descriptive statistics, correlation analysis, Unit Root Test and Multiple Regressions. The study found that SMEs contributes insignificantly to the Nigerian economy in terms of SMEs productive output, SMEs sales turnover and an increase in gross domestic product growth rate. The study recommended that SMEs in Nigeria should operate their business by trying to increase their productive output as well as ensuring the increase in sales turnover to see if in the future their efforts will add to an increase in the gross domestic product in Nigeria. Keywords: Business, Domestic product growth rate, Economic growth, Financing , SMEs Introduction Small and Medium Scale Enterprises (SMEs) has continued to be a popular phrase in the history of economic development around the world today. As a result, both the developed and the developing countries are actively engaged in and continue to seek pragmatic ways of improving the activities of SMEs. According to the World Bank (2010), small and medium-sized enterprises constitute 99% of an estimated 19.3 million enterprises in the European Union (EU) and provide about 65 million jobs representing two-thirds of all employment. In the context of the developing world, SMEs in Africa constitute the larger proportion of businesses and employ a significant portion of the population, while Ojo (2003) also attributes the economic success of the Asian countries to the activities of SMEs. In Ghana, official statistics indicate that about 70% of enterprises are micro and small-sized and that about 40% of Ghana’s Gross National Income is contributed by the private sector which is dominated by SMEs (Ghana Statistical Service, 2012). Over the years, Governments of Nigeria encouraged small and medium scale enterprises to ensure the growth of the economy in terms of increase in gross domestic product, by enacting Micro Finance Bank (MFB) Scheme on 16 th December 2005. There is a low SMEs contribution to GDP in Nigeria. The government of Nigeria frequently formulated policies to help grow the SMEs in Nigeria for the sector to increase gross domestic product, increase its production output, and also realized sales revenue. The output of SMEs is
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