Impact of Small and Medium Scale Enterprises (smes) on Economic Growth in Nigeria (1990–2023)

Student: Adedotun Esther Okunrotifa (Project, 2025)
Department of
Ekiti State University, Ado-Ekiti, Ekiti State

Abstract

This study investigates the impact of Small and Medium Enterprises (SMEs), inflation, trade openness, and economic growth in Nigeria from 1990 to 2023 using the ARDL (Autoregressive Distributed Lag) estimation model to examine long- and short-run relationships between these variables. Data were obtained from the Central Bank of Nigeria, National Bureau of Statistics, and the World Bank. Findings reveal that SMEs significantly contribute to GDP in both the short and long run, highlighting their role in job creation and economic diversification. Inflation negatively affects GDP, while trade openness promotes growth. The study concludes that SMEs are vital to Nigeria’s economic growth and recommends policies that enhance SME access to finance, control inflation, and strengthen trade liberalization.

Keywords
SMEs economic growth Nigeria ARDL inflation trade openness GDP employment entrepreneurship policy reform
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