Small and Medium Enterprises Development and Poverty Reduction in Anambra State, Nigeria
Keywords:
Small and Medium Enterprises, Poverty Reduction, Income Levels, Access to Finance, NigeriaAbstract
This study investigates the relationship between Small and Medium Enterprises (SMEs) development and poverty reduction in Anambra State, Nigeria, with a specific focus on income levels as a proxy for poverty. Using a sample of 395 micro business owners selected via stratified sampling, we analyzed the independent variables, including access to finance, business training and capacity building, market access, government policies, employment generation, and innovation adoption, to assess their impact on poverty reduction. The theoretical framework for this study is anchored in the Resource-Based View (RBV) of firms, primarily articulated by Wernerfelt (1984) and further developed by Barney (1991). The RBV posits that a firm's resources and capabilities are central to achieving sustained competitive advantage and superior performance. Descriptive analysis, utilizing simple percentages to profile the demographics of respondents, revealed a predominantly young, educated entrepreneur base. Mean and standard deviation metrics were employed to assess the objectives relating to the independent variables. Preliminary findings indicate that access to finance (mean = 3.78, SD = 0.82), business training (mean = 3.65, SD = 0.91), and market access (mean = 4.01, SD = 0.78) had significant positive correlations with income levels. An Error Correction Regression Model confirmed that these variables play a crucial role in influencing income levels, with a significant coefficient observed for employment generation (p < 0.01). The study concludes that enhancing SMEs through improved finance access, training, and market opportunities can effectively reduce poverty in the region. Recommendations include the establishment of targeted financial literacy programs and governmental support initiatives for SMEs. The implications of this study underscore the potential of SMEs to drive economic growth and poverty alleviation, thus contributing significantly to Anambra's socioeconomic development.
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Copyright (c) 2024 Ezeanolue, Uju Scholastica, Fr. Andrew Izuchukwu Nnoje, Nwokoye, Ifeoma Emmanuella, Ugbodaga, Christopher Osigbemeh
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