This Study is on the impact of Small and Medium Scale Enterprises (SMEs) in poverty alleviation in Nigeria. What role do SMEs play in Poverty Alleviation?
Small and Medium Scale Enterprises (SMEs) plays a very vital role in the economic growth and development of any nation. In Nigeria, it is now realized that the large scale enterprises left alone would not be able to fast track the needed development and growth challenges that would project Nigeria as one of the first 20 most viable economies in the world by the year 2020.
Therefore, it becomes very imperative for the development of the SMEs in order to take care of specifically the rural developmental needs and the harnessing of the thought insignificant raw materials into the production of goods that can serve the very urgent needs of the entire middle and lower classes in Nigeria.
The laudable objectives of the SMEs among the highlighted objectives listed above are:
These roles include inter-alia substantial contribution of this sector to the gross domestic product, employment generation, increasing local value Added Tax, and technological development and above all poverty alleviation. It is thus becoming evidence that small scale enterprise which had hitherto generally been neglected could play the aforementioned roles, as well, if not better than the large scale establishments, the only viable and reliable option for development, growth and survival of any economy. The developments of small scale enterprises do not only contribute significantly to improve living standards, they also bring substantial local capital formation and achieve high level of productivity. The exploitation of the vast natural and human resources available to Nigeria for economic development would to a great extent depend on how the small businesses are organized. The performance of the small scale business sector in the economy should be a matter of great concern to all.
Nigeria today, currently estimated about twelve (12) million businesses of all sizes located in various parts of the country, out of which, small businesses clearly account for over seventy percent (70%) of industrial employment, (World Bank, 2008).