IMPACT OF SMALL AND MEDIUM ENTERPRISES ON POVERTY ERADICATION IN NIGERIA

ABSTRACT

Small and Medium Enterprises (SMEs) are vital for the development of any economy, and possess great potentials for development of indigenous entrepreneurship, employment, poverty eradication, and so on. The purpose of the study was to explore the impact that SMEs has over the eradication of poverty, fostering growth sustainability of nation’s economy. Three research questions were poised for the study and three hypotheses formulated in line of the objectives. The research adopted an exploratory survey design using Edo State Environs as a pilot for the study. The target population composed of SMEs owner around the region but the accessible sample size of 100 SMEs was drawn using Taro Yamane Formula. Close-ended questionnaire were designed and administered to the sampled population. Data was collected, collated, and analyzed with the aid of Statistical Package for Social Science (SPSS) version 2021; The Pearson moment correlation (r) technique and Z-test technique were adopted to ascertain the relationship and significance of the variables in the research. The result statistically revealed a negative correlation of r = 0.860 and Z-test result for the two other hypothesis of 9.14, 6.3. Implying that employment SMEs innovation and performance are related and has an impact on poverty eradication. Furthermore, innovation in terms of ideas, new technology and training of employees provides opportunity for SMEs to thrive. Consequently, all findings above lead to an eradication of poverty within Edo State. The study recommends that businesses should always obtain feedback from customers, their staffs should be trained and re-trained, and government should create a peaceful and conducive environment for businesses to thrive. Furthermore, innovation in terms of ideas, new technology and training of employees provides opportunity for SMEs to thrive. Consequently, all findings above lead to a reduction in poverty within Plateau State. The study recommends that businesses should be aware of it roles in eradicating poverty and always seek business growth and mentorship, also government should make enabling and peaceful environment, equally creating system for SMEs to thrive and hit the highest peck of nation’s economic growth.