SMALL AND MEDUIM SCALE ENTERPRISES AND ECONOMIC GROWTH IN NIGERIA

ABSTRACT

This study set out to answer the question, "How have SMEs contributed to Nigeria's economic development over the last decade?" by analyzing data collected using the OLS technique and a time series covering the years 2010 through 2020 (for a total of 11 observations). The GDP, SMES OUTPUT, and SMES TURNOVER have a positive connection with coefficients of 4.65E-0.6 and 4.46E-10, respectively, whereas the intercept coefficient (C) is negative at - 1.924932. If the likelihood is smaller than 0.05, then that independent variable provides a substantial explanation for the dependent variable in question. The values of SMES OUTPUT (0.1807) and SMES TURNOVER (0.1513) are hence insignificant. R2 = 0.329655 indicates that the independent variables account for 32.97% of the variation in the dependent variable. Furthermore, the independent factors account for 16.20% (0.162068) of the dependent variable after adjustment for covariates. Since a higher R2 or adjusted R2 indicates a more precise model. If your prob(f-statistics) result is larger than 5%, your model is also unfit. Using the Durbin-Watson test, we look for autocorrelation. Take into account that a Durbin Watson value below 2 indicates positive autocorrelation, over 2 indicates negative autocorrelation, and exactly 2 indicates the absence of autocorrelation. The fact that our regression yielded a value of 1.359710 indicates that the data suffer from excessive positive autocorrelation. However, this is of little consequence, given the model is sound; in light of these results, it is reasonable to conclude that SMEs have contributed significantly to economic expansion in Nigeria during the whole study period. Many suggestions, including that SMES should, are offered by the research. Small and medium-sized enterprises (SME) should increase their productivity by starting new businesses and spending more money in their current ones.