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The Impact of Small and Medium Scale Enterprise on Poverty Reduction in Nigeria: A Case Study of Odeda Local Government Area of Ogun State

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Abstract

The study investigates the impact of Small and Medium Enterprises (SMEs) on poverty reduction Odeda Local Government Area of Ogun State. The research evaluates whether SMEs have a significant impact on eradicating poverty rate in Odeda Local Government Area of Ogun State by reviewing and enumerating the policies and programs government had undertaken, and the reasons for their failure. Questionnaires were used in getting relevant information from SMEs operators, and their responses were analyzed using Statistical package for Social Science (SPSS) with Chi-square tests for hypothesis testing with a specific sample size (n=109). The research study indicates that SMEs impact positively on reducing poverty, by creating jobs, bringing innovative enterprises, providing income opportunities, and support for local economy. A significant relationship was found between SME operation and job creation (p=0.039). Thus, the need to promote SMEs cannot be over-emphasized. In conclusion, the three arms of government should make available credit facilities, improve infrastructural deficiencies, and establish skill acquisition centers without which the achievement of the goal of eradication of extreme poverty and hunger will continue to be a mirage in Nigeria.

Keywords:

Employment Opportunities Job Creation Odeda Local Government Poverty Reduction Small and Medium Enterprises (SMEs)

Article information

Journal

Journal of Management, and Development Research

Volume (Issue)

2(2), (2025)

Pages

85-93

Published

07-10-2025

How to Cite

Adenekan, O. I. (2025). The Impact of Small and Medium Scale Enterprise on Poverty Reduction in Nigeria: A Case Study of Odeda Local Government Area of Ogun State. Journal of Management, and Development Research, 2(2), 85-93. https://doi.org/10.69739/jmdr.v2i2.950

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