This study examines the Contributions of Small and Medium Scale Enterprises (SMEs) to employment generation in Nigeria. Past efforts at providing solution to this malaise facing developing nations of the world are often faced with stiff opposition sometime right from conception. The aim of this study therefore; was to provide a sectoral analysis of the efficacy of SMEs as a vibrant tool for employment generation in the country. The Binomial Logistic Regression Analysis was employed as tools for statistical analysis. The study observes that the sector was unable to achieve this goal due to its inability to obtain adequate business finance for the sector. It was observed that virtually all the SMEs that were sampled relied on the informal sources of finance to start their business. As a way out, the study suggests the need for the integration of the activities of the formal with that of the informal financial institutions. Also, government should as a matter of urgency, provide the needed infrastructure such as roads, water, electricity and the needed enabling environment. The paper is of the view that these efforts will reduce the cost of doing business, increase retained earnings of the SMEs, their average monthly income and poverty on the long run.
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