Impact of Micro, Small and Medium Scale Enterprises on Gross Domestic Product and Human Development Index in Nigeria
Victor Amadin Idehen, Angela Obose Oriazowanlan
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.