The Relationship between Small and Medium Enterprises (SMES) and Poverty in Nigeria

Abstract

This study examines the moderating role of youth empowerment on the relationship between Small and Medium Enterprises (SMEs) and Multidimensional Poverty Index (MPI) in Niger State, Nigeria. The main objective of the study is to delve into whether SMEs has substantial impact on the reduction of poverty in Niger State, Nigeria. A survey technique was employed and questionnaire was used to collect data from 432 SMEs owners in 8 selected Local Government Areas of Niger State, Nigeria. The Statistical Package for Social Sciences was used for descriptive analysis and Partial Least Square-Structural Equation Modelling (PLS-SEM) is used for testing for hypotheses. The results showed that there are positive changes in the socio-economic status of the people due to their involvement in SMEs activities of employment, innovation, human capital development and income; the results showed that the moderating effect of youth empowerment has positive influence on the relationship between SMEs and MPI. The results imply that SMEs owners should be empowered to enable them have access to resources to finance their businesses; and greater effort should be accorded to the empowerment of youth so as to further reduce poverty in Nigeria