Impact of Entrepreneurship on Economic Development in Nigeria

Abstract

This study examines the impact of Small and Medium-scale enterprise growth (SMEG) on Nigeria’s economic development from 1999 to 2022, using Gross Domestic Product (GDP) as the dependent variable. Employing a longitudinal design and secondary data from national and international sources, the research applies multiple regression analysis to evaluate the effects of SMEG, inflation (INF), and interest rates (INTR) on GDP. The findings reveal a significant positive relationship between SMEG and GDP, with a 1% increase in SMEG contributing to approximately 35% GDP growth, underscoring SMEs as pivotal drivers of economic progress. In contrast, INF and INTR show minimal individual impact on GDP. The study highlights the interconnectedness of these variables in shaping Nigeria’s growth and emphasises the need for targeted policies to enhance SME productivity, competitiveness, and access to finance. It advocates for a multidimensional policymaking approach to maximise synergies among factors influencing economic development.