Pages: 81-89

Abstract

The study examined the impact of Micro, Small and Medium Scale Enterprises (MSMEs) ‎on Gross Domestic Product (GDP) and Human Development Index (HDI) in Nigeria. It ‎determined some of the challenges faced by MSMEs in terms of access to credit facilities ‎to make the desirable impact. Small and medium scale enterprises stimulate economic ‎growth through their contributions to poverty reduction and employment creation. ‎Secondary data was used for the study which were obtained from National Bureau of ‎statistics, Commercial Bank loan for MSMEs and unemployment rate,  for the period of ‎eight years. Data was also obtained from united nation development programme on ‎human development index in Nigeria. These data were analysed and presented using ‎ordinary least square method and Analysis of variance (ANOVA). Regression analysis ‎and ANOVA was used to test the hypotheses at 0.05 level of significant. The findings ‎revealed that MSMEs impact on gross domestic product through poverty and ‎unemployment reduction and stimulate economic growth thereby raising standard of ‎living to impact on country’s human development index. The study recommended ‎increase on MSMEs access to finance, removal of encumbrances that impair access to ‎finance and policies directive that could encourage MSMEs development. Also, the need ‎to sustain and improve entrepreneurship curriculum in our institutions and redirect our ‎education toward entrepreneurship development, training of citizens in value creation, ‎exposure of citizens to what is obtainable in other clime and infrastructural ‎development were emphasized.