Small and Medium Enterprises and Sustainable Economic Development in Nigeria

This paper investigates the impact of Small and Medium Enterprises (SMEs) on sustainable economic development in Nigeria using time series data. Annual time series data collected from the statistical bulletin of Central Bank of Nigeria (CBN) and the Bureau of Statistics (BOS) from 1986 to 2016 are fitted into the regression equation using appropriate econometric techniques such as the VECM and VEC based causality test among others. Results from the empirical analysis shows that a positive and significant relationship exists between small and medium enterprises investment and Nigeria's economic growth. It is recommended that to achieve the desired socio-economic development, more investments should be directed towards Small and Medium Enterprises while not eroding the role of enabling environment through the provision of needed infrastructures and a stable political environment.