The role of SMEs development on poverty alleviation in Nigeria

Abstract

The role of SMEs development on poverty alleviation has been a core element of the current report. This study examined the role of small and medium enterprises on poverty eradication in Nigeria. Two research questions were posed for the study and two hypotheses formulated in line with the objectives. One hundred and forty two (142) questionnaires were administered randomly to the entire employee population of the SME companies that are registered with SMEDAN in Lagos Nigeria. The sample size was determined using Yamane formula. The data was analysed using manual and electronic based methods with the aid of data preparation grid and statistical package for the social sciences, (SPSS) statistical package version 21.0. The study made use of statistical tools which include: analysis of variance (ANOVA), correlation efficient and regression analysis in testing hypotheses where applicable. Therefore, the study found out that SME development affects poverty alleviation and also Training organized by SMEDAN affects SMEs employment creation. It was discovered that the small and medium enterprises provided employment opportunities, training ground, harnesses utilization of local resources and also acts as a pillar hold of a nation, Nigeria inclusive. The study concluded that a good development strategy if employed by these SMEs will grow to large-scale capital intensive. The study recommends that SMEs should source their loans from the financial institutions where interest rates are low.