Small and Medium Scale Enterprises Development and Poverty Alleviation: Implication for Policy Making In Nigeria

Abstract

The paper examines the role of viable small and medium enterprises, generally called SMEs in poverty alleviation related discourses in Nigeria. SMEs have been considered as the engine of economic growth for promoting equitable development. On the other hand, poverty, being an aspect of gross social inequality, is mostly associated with developing countries, most especially the Sub-Saharan African countries. These countries are characterized by low productive capacity, joblessness, low capital, inadequate education, etc. Experiences of developed economies in relation to the roles played by small and medium enterprises, buttress the fact that the relevance of SMEs cannot be ignored. It therefore means that, there is a high correlation between the degree of poverty, unemployment, economic well being of the citizens of a particular country and the degree of vibrancy of its SMEs. The paper looks at the theoretical postulations on the approaches to poverty alleviation. It also examines the roles of government in the development of SMEs. The paper then argues that if Nigeria were to alleviate poverty to the barest minimum, one of the sure ways would be to vigorously pursue the development of SMEs by attending to the identified challenges which militate against their growth and development. Data collected through secondary sources show that poor infrastructure facilities, shortages of skilled manpower, constrained access to funds, poor management practices and inadequate business plan among others are the constraints. Based on the above observations, appropriate recommendations were made for the growth and development of viable SMEs for poverty reduction in Nigeria.