Small and Medium Scale Enterprises (SMEs) on Poverty Reduction in Central Zone of Taraba State, Nigeria

Abstract

All over the world, emphasis has been placed on the growth of the Small and Medium Scale Enterprise (SMEs) sector due to its immense contribution on poverty reduction. To better understand the nexus, the study investigates small and medium scale enterprises (SMES) on poverty reduction in Taraba State central zone. Survey research design was used; the population of the study was 780. Using Yamane's (1967) technique, 264 respondents were selected and served with questionnaires which were all duly completed and retrieved, representing 100%. Data was presented in tables using frequency distributions, percentages, mean scores, and standard deviations to illustrate patterns in the opinions of respondents. It was concluded that SMEs plays a vital role in poverty reduction in Taraba State central zone via stimulating supply chains, inclusive employment, supplementing, household income and reducing urban migration. Thus, the study recommended that government should take steps in setting up enterprise development agencies in every state of the federation to serve as coordinating unit that will help business enterprises as well as reduce unemployment, poverty and its attendant effect on economic growth.