ABSTRACT

 The purpose of this study was to determine the influence of small and medium scale on the economic growth in Nigeria. Small and medium scale enterprises plays crucial role in providing social base for a country's development. Perhaps. no other development strategy has enjoyed as much as prominences in Nigeria development plans as the small and medium scale enterprises (SMES). The broad objective of this study were to examine the influence of small and medium scale enterprise_s on economic growth and development in Nigeria. Objective one was to analyzed the factors that affect· growth of small and medium scale enterprises in Nigeria, objective two was lo estimate the relationship between small and medium scale enterprises in Nigeria. while objective three was to examine the of trend growth in small and medium scale enterprises and gross domestics product. objective four was to compare the different between growth and GDP. Data was analyzed using multiple regression, simple regression. trend model and t- test analysis. The study shows that there is no significant relationship between small and medium scale enterprises and the gross domestic product and there is increase in the output as well as manufacturing capacity while profit reduces; four variables were significant such as bank credits significant atl %, lending rate significant at 5%. gross fixed capital formation significant at 10%, manufacturing capacity utilization significant at 5% which explained as the variable increases SMEs increases. The study brought into focus the great potentials of the small and medium scale enterprises on the economic growth in Nigeria. having the inherent advantage of low capacity out-lay and high potential for employment creation, diversification of economic base and disposal of enterprises in rural and urban areas and equitable distribution of National income and resources.