Title: Assessment of Promotion of Small and Medium Enterprises and Their Contribution to the Economic Growth of Kogi State, Nigeria
Authors: Nwachukwu Ndidi Patience
Volume: 10
Issue: 4
Pages: 13-28
Publication Date: 2026/04/28
Abstract:
Small and Medium Enterprises (SMEs) are widely recognized as critical drivers of economic growth, employment generation, and poverty reduction in developing economies. In Nigeria, SMEs account for over 96 percent of registered businesses and contribute nearly half of the national Gross Domestic Product (GDP). However, their performance varies significantly across states due to differences in government promotion, financial access, and infrastructural support. This study assessed the promotion of SMEs and their contribution to the economic growth of Kogi State, Nigeria. A survey research design was adopted, with a sample of 385 SME operators selected from six local government areas across the three senatorial districts of Kogi State. Data were collected using a structured questionnaire and analyzed using descriptive statistics, Chi square tests, and one way Analysis of Variance (ANOVA). The results showed that the Kogi State government has played a significant role in promoting SMEs through media campaigns, grants, loan schemes, infrastructure provision, and supportive legislation. However, the extent of financial support was perceived as stronger by small scale enterprises than by medium scale enterprises. The study also found that SMEs contribute substantially to economic growth through capital formation, employment generation, skill development, and reduction of dependency on state welfare. Nevertheless, significant constraints persist, including insufficient funds, lack of basic infrastructure, weak business capacity, and uncertain business lifespan. Moreover, SMEs were found to perform poorly in corporate social responsibility. The study concludes that while government promotion has been effective, the impact is uneven and constrained by structural deficiencies. Recommendations include the liberalization of bank lending policies, establishment of entrepreneurship development institutes, and mandatory CSR frameworks for SMEs.