Small and Medium Scale Enterprises and Nigeria Economic Growth (Published)
Globally, small and medium-sized businesses (SMEs) are acknowledged as key contributors to economic expansion. SMEs are seen as vital components of the Nigerian economy since they contribute significantly to job creation, income generation, and poverty alleviation. However, despite all these achievements of SMEs their performance in Nigeria has been a subject of concern for several years. This study measured empirically how SMEs have affected Nigeria’s economic growth using key macroeconomic indicators as the Commercial Bank Loan, Patent Application, Trade, Value Added Tax, among others. The study employed Bound tests and Co-Integrating Regression on data collected from World Bank database, United Nations Conference on Trade and Development (UNCTAD) data statistics, CBN Statistical Bulletin and World Investment Reports (2023). The study discovered that while patent applications has a negative effect on Nigerian economic growth, loans from commercial banks, inflation, value-added tax, labour force participation, and SME trade have a favorable impact. In order to support SMEs and growth in the Nigerian economy, it was suggested that a combination of fiscal and monetary policies be used by the Nigerian government. Policymakers should streamline loan application processes, reducing bureaucratic hurdles, and improving credit scoring mechanisms. The government should also foster more public finance, private led initiatives to provide SMEs with all they need to thrive in the economy.
Keywords: Nigeria, Small and Medium Scale enterprises., economic growth
ANALYSIS OF IMPACT OF CREDIT ON THE PERFORMANCE OF Smes IN SOKOTO METROPOLIS OF SOKOTO STATE OF NIGERIA (Published)
This paper analyses the impact of credit on the performance of SMEs in Sokoto metropolis the capital city of Sokoto State of Nigeria. This research is important in the sense that it may provide feedback on government programs and policies on SMEs finance. The research uses primary data collected from 294 respondents out of a population of 1710 registered SMEs in Sokoto metropolis using the random sampling technique. Regression analyses were used to analyse the data. The result shows credit is a major determinant of employment generation of SMEs. It is therefore recommended that is that policy makers should continue to formulate policies that will compile banks to increase credit to SMEs and reduce interest rate on the loan.
Keywords: Credit, Performance, Return on Assets, Small and Medium Scale enterprises., employee total assets ratio.