SMALL AND MEDIUM SCALE ENTERPRISES AND THE DEVELOPMENT OF EDO STATE

ABSTRACT

Small and Medium Scale Enterprises (SMEs) played and continue to play significant roles in the growth, development and industrialization of every economy. This research work was designed to determine the role of SMEs on the Development of Benin City. In this study, the independent variable, small and medium Scale Enterprises, was proxied using four sub-variables, viz; SMEs’ Employment Generation, SMEs’ Job Security, SMEs’ Rural-Urban Migration and SMEs’ Corporate Social Responsibility. The dependent variable, the development of Edo State was captured via the contribution of SMEs to the State’s Gross Domestic Product (GDP). Data were collected from both primary and secondary sources. The total population of 156 SMEs was obtained from both the register of SMEs at the Edo State Ministry of Commerce and Industry, and the 2015 Business Diary Annual Report on SMEs. The primary source of data was a structured questionnaire instrument administered on the entire 156 SMEs located in the four Local Government Area (LGAs) of Oredo, Ikpoba-Oha, Egor and Uhunmwode that make up Benin City metropolis in Edo State. The data collected were analyzed, using the Statistical Package for the Social Sciences (SPSS version 17 software), and were subjected to further analysis vide simple percentages, means and standard deviation as well as multiple regression analysis. Based on 5% level of significance, the result of the study showed that there was significant and positive relationship between SMEs’ Employment Generation, SMEs’ Job Security, SMEs’ Rural-Urban Migration and SMEs’ Corporate Social Responsibility on one hand, and the development of Benin on the other hand. There was however an inverse and significant relationship between the phenomenon of rural-urban migration and the development of Benin. Deriving from this study therefore, it is recommended that all efforts be made to ensure the establishment of SMEs and to enhance their viability in State.