Urgent imperative for SME's to contribute to the national growth and development agenda (original) (raw)

Contributions of SMEs to Employment, Gross Domestic Product, Economic Growth and Development

Jalingo Journal of Social and Management Sciences, 2022

Small and Medium Enterprises (SMEs) play an essential role in the provision of employment, contribute to the growth of GDP, economic growth and development of many countries. The SMEs are considered to be the main foundation and support for economic growth and development. However, with the rapid changes in the external business environment, and coupled with development brought about by ICT, there is always the need for continues studies to keep update possible changes that might occur in the environment and the field. Therefore, firstly, this study examined and analysed the role being played by SMEs toward employment, GDP, economic growth and development in the Nigerian economy. Secondly, the study reviewed the extant literature and empirical research and identified the problems and challenges facing SMEs in Nigeria. The research used data obtained from secondary sources. According to the literature, the problems and challenges facing SMEs are divided into two groups; the internal and external problems. This study attempted to identify the problems and challenges as a positive first step towards formulating a workable framework for the SMEs to overcome the problems and challenges. Hence, it is recommended that government programmes and incentives are either insufficient or not delivered effectively enough to overcome these problems. Consequently, recommendations were given to proffer solutions to the identified problems and challenges facing the SMEs in Nigeria.

SMALL AND MEDIUM SCALE ENTERPRISES SME AS A CATALYST FOR ECONOMIC AND NATIONAL GROWTH

The performance and effectiveness of small and medium scale enterprises, equity investment scheme (SMEEIS) as an instrument of economic growth and development in Nigeria has long been close examination. The study was carried out using primary and secondary methods in the collection of data, where in primary data, the researcher designed and advanced questionnaires. The data collected from the questionnaire was analyzed in tables with simple percentage and interpreted for the understanding of the study. The researcher used a sample random sampling method of selection. The procedure for analyzing the data for this research are as follows; Ordinary Least Square (OLS).Co-Integration: which is a statistical property of a collection (XI, X2,. XK) of time series variables, the study Findings it becomes apparent that the study reveals that deposit money bank lending, on SME's development and growth , indices presented in the model are capable of influencing SME's output. The study recommends amongst others that government should enforce and reinforce SME's scheme,(SMEEIS) and, small and medium enterprises credit guarantee scheme (SMECGS) to promote needed economic and National Development.

Small and Medium Scale Enterprises (SMEs): A Catalyst in Promoting Economic Development in Nigeria

This research paper has specifically x-rayed the concept of Small and Medium Scale Enterprises (SMEs) and it was defined as a business which is owned, led by one or a few persons, with direct owner(s) influence in decision making, and having a relatively small share of the market and relatively low capital requirement. The contributions of SMEs to the economy were examined in this paper. The problems confronting SMEs and the possible strategies of combating the problems were also examined. A conceptual framework was developed by the authors and it explains/illustrates the series of variables that are integral in the area of SMEs and the effects it can possibly have on the economy. The concept of Economic Development was briefly described. A section was devoted to examining the roles of SMEs for economic Development in Nigeria. One of the major recommendations advanced in this paper was that the Government should urgently invest massively in improving the current infrastructural base in the country. 1.0. Introduction The national economy has remained a focal point in recent debates owing to the rising level of unemployment, poverty, insecurity, low productivity, human capital flight/brain drain. The need to advancing the socioeconomic , political and technological growth of any nation relies heavily on the creativity and technical ingenuity of the players/actors in that economy in transforming the available resources into productive use. It has been stressed by scholars that Small and Medium Scale Enterprises (SMEs) is a driving force in developing and developed nations alike. The emphases on SMEs remain a recurring decimal in the lexicon of Nigeria and this is not unconnected with the realization of the roles of SMEs in job creation, poverty alleviation and foreign exchange conservation (Jimah, 2011; Ikherehon, 2002; Akingunola, 2011). Agu (2001) defined SMEs as a business which is owned, led by one or a few persons, with direct owner(s) influence in decision making, and having a relatively small share of the market and relatively low capital requirement. The earliest manifestations of SMEs in advanced countries were coltage industries that later transformed into industrial complexes and tech factories. SMEs today account for the bulk of output in most countries today. It is also a proven job creator: the share of SMEs in global productivity is over 30% higher in some countries, but generally growing. In China, SMEs employ over 50% of the workforce while in the United States (US), SMEs account for over 50% of Gross Domestic Product (Ehinomen & Adeleke, 2012). In Nigeria, SMEs employ over 60% of the labour force both in formal and informal sectors. The need to have a regulatory body to control the activities of SMEs in the country led to the formation of Small and Medium Enterprises Development Agency of Nigeria (SMEDEN) in 2004 by an act of parliament towards the realization of the goals and objectives of SMEs. There is no doubt that SMEs play significant roles in the advancement and development of the economy. Some of these roles which have been briefly identified above remain integral to the progress of the nation. For these roles to be fully realized there is need for our educational system to fully be repositioned with the aim of accelerating the growth and development of SMEs. The establishment and management of SMEs no doubt have numerous implications on the economic development of the nation as documented by scholars in the field. The term Economic development has been defined by various scholars in different ways. According to Misra and Puri (2003), economic development means growth plus progressive changes in certain critical variables that determine the well-being of the people. They assert that there are qualitative dimensions in the development process which may be missing in the growth of a given economy expressed in terms of an increase in the national product or the product per capita. From the foregoing, it becomes obvious that economic development is far beyond the numerical growth in a nation's income which politicians often express to draw the attention of unsuspecting electorates. This growth or changes must cut across all the sectors of the economy and must be felt in the living standard of the citizens and this is what SMEs seeks to bring to reality.

A critique of SME-led approaches to economic development

… apresentada na II Reunião do Task Force …, 2003

Small and Medium Enterprises (SMEs) have had a privileged treatment in the development literature, particularly over the last two decades. Hardly any arguments are put forward against SMEs, even if development policies do not necessarily favour them and economic ...

IMPORTANCE OF SME s IN CHANGING INDIAN ECONOMY

A nation’s growth is reflected in the quality of life of its people. Development of a nation depends on the quality of growth: its composition, distribution and sustainability. High rates of economic growth do contribute to a nation’s economic and social development. However mere high growth rates alone do not contribute in building a nation’s economy. A long run sustainable growth rate is equally essential to a nation to move from growth path to development. Employment generation, innovation, well distributed economic activity across population, sectors, geography along with good governance lead to inclusive growth, bridging various divides in a nation thus fostering quality life

The role of SMEs for development: A literature review

Paper submitted to ERSA 2004 CONGRESS:" …, 2004

The role played by SMEs in any society is undoubtedly important, for instance, in Portugal around 98% of the industrial fabric is composed by SMEs. Nowadays, entrepreneurship and firm creation is mostly related to small and micro firms, which lead us to look at them as an important development agent in any society.

Issues in SME Development in India

This paper discusses the characteristics, contributions of SMEs to economic development, and the constraints to SME development in developing countries with particular reference to India. SMEs sector is a only solution to the problems of poverty, insecurity, unemployment, over population in the modern world. The contribution of SMEs has been remarkable in the industrial and economic development of the country. It has contributed a share of 40% in the industrial production and 35% of the total manufactured exports of the country. This sector is second in the rank of employment generation next to the agriculture. This sector employing approximately 14 million people. Overall this sector has contributed a lot to the economic development of the country. This paper provides some relevant recommendations to policy makers, development agencies, entrepreneurs, and SME managers to ascertain the appropriate strategy to improve the SME sector in the developing countries like India.