CRITICAL EXAMINATION OF THE COMPLEX INTERPLAY BETWEEN POVERTY ALLEVIATION AND SMALL AND MEDIUM ENTERPRISES IN NIGERIA (2000-2019)CRITICAL EXAMINATION OF THE COMPLEX INTERPLAY BETWEEN POVERTY ALLEVIATION AND SMALL AND MEDIUM ENTERPRISES IN NIGERIA (200

Abstract

This paper seeks to critically examine complex interplay between poverty alleviation and small and, medium enterprises (SMEs) in Nigeria. Annual time series data was used to examine the impact of SMEs on poverty in Nigeria for the period between 2000 and 2019. The estimated ECM result revealed that SMEs output was negatively related to poverty level and was statistically significant, while unemployment and inequality were positively related to poverty level but were statistically insignificant. It was therefore an established fact from the result that as SMEs increases, poverty level would reduce. As unemployment rate and inequality increases, poverty level correspondingly increase. Significantly, there is a closed links among these variables. The paper therefore recommended that staunch efforts should be made by government at all levels to encourage both the private and public sectors in the establishment of more sustainable SMEs as a major tool to fight against poverty in Nigeria. Policy measures by government towards the combat of poverty should not neglect the efficacy of employment generation as they are all interwoven economic problem facing the country. Government and all the relevant agencies should provide ways of making credit available to the citizenry and also pursue policies of financial inclusion to accommodate the poor and the vulnerable either through deposit money banks or special development banks to reduce inequality in the country.