The Impact of Small and Medium Enterprises (SMEs) on Poverty Reduction in North-Western Nigeria
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Abstract
This paper examines empirically the impact of small and medium enterprises (SMEs) on poverty reduction in North-Western Nigeria. The study adopts a cross-sectional research design. It employed a quantitative survey research method using questionnaires as an instrument for data collection. A multistage sampling method was applied in selecting the sample of 538 respondents for questionnaires distribution. SPSS and PLS-SEM tools were used to screen and analyze the data. The findings of the study revealed that the impact of SMEs is positively significant to poverty reduction (Consumption pattern, Expenditure pattern, Job Creation, and Income generation). Revealing that SMEs positively affect the reduction of poverty in Northern Nigeria. The results of this study have implications for policymakers in policy formulation for government intervention on SMEs development in Northern Nigeria, which is characterized by low development due to insecurity and acute poverty. Hence, the study recommends government design a policy for SMEs intervention on SMEs development in Northern Nigeria, which is characterized by low development due to insecurity and acute poverty. The study is limited to the influence of one independent variable, namely SMEs. Also, the study is limited to one region in Nigeria (North-western Nigeria). Future researches are recommended to include other regions for the generalization of findings. Based on this limitation, it is recommended that future research include additional variables such as Entrepreneurship orientation.
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