Assessing the Contribution of Small and Medium Scale Enterprises to the Economic Growth of Kogi State, Nigeria

Abstract:

This paper sought to determine the contribution of small and medium scale enterprises to the economic growth of Kogi State, Nigeria. The specific objectives examined the impact of small and medium enterprises on employment generation in Kogi State as well as their impact on poverty reduction. The population of the study comprised 134 small and medium enterprises in Kogi State. A sample size of 100 was derived from the population using Taro Yamane’s formula. Chi-square was used to test the formulated hypotheses using Statistical Package for Social Sciences (SPSS). Findings revealed that small and medium enterprises have a positive impact on employment generation and also have a significant impact on poverty reduction in Kogi State, Nigeria. Based on the findings, it is concluded that small and medium enterprises have a significant impact on the economic growth of Kogi State, Nigeria. It is recommended, among others, that governments at all levels should encourage the establishment of more microfinance banks to enable SMEs to have increased access to funding at a reduced cost in order to boost their growth and also ensure the provision of a business friendly environment by adjusting harsh economic policies so as to help SMEs to grow.