THE ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT THROUGH SMALL AND MEDIUM ENTREPRISE IN NIGERIA

Abstract

This study examines the role of entrepreneurship in economic development through SME in Nigeria. A total of 30 SMEs students in Oyo town were randomly selected from a cross section of a population of all SMEs spread around some states of Nigeria and covering virtually all forms of enterprise. Participants were selected through a simple random sampling. Data was collected through the use of questionnaires and also complemented with personal interviews of some SMEs operators. The responses of the participants were analyzed using the frequency tables, which provided answers to the research questions on identifying the greatest problem which SMEs face in Nigeria, the identification and ranking of the top ten problems or challenges of SMEs in Nigeria and the relationship between the form and nature of the business enterprise and its sources of funding for its operations. The major findings of this study include the following: SMEs have played and continue to play significant roles in the growth, development and industrialization of many economies the world over. In the case of Nigeria, SMEs have performed below expectation due to a combination of problems which ranges from attitude and habits of SMEs themselves through environmental related factors, instability of governments and frequent government policy changes etc. Promoters of SMEs should thus ensure the availability or possession of managerial capacity and acumen before pursuing financial resources for the development of the respective enterprise.