Synergistic Influence of Selected Human Capital Formation Indices on Small and Medium Scale Enterprises Growth in Nigeria (2001-2015)

Inadequate human capital is a prominent challenge facing small and medium scale enterprise (SMEs) growth in Nigeria and other developing economies. Despite diverse measures taken overtime to develop and improve human capital, Nigeria still falls short of the standard recommended by United Nations Educational, Scientific and Cultural Organization (UNESCO). This study analyzed the synergistic influence of selected human capital formation indices on small and medium scale enterprises (SMEs) growth in Nigeria between 2001 and 2015. Specifically, the study examined government expenditure on education (GEE), and level of school enrolment (SENR) within the specified period and their influence on SMEs growth was assessed. Data generated was analyzed using Multivariate Regression technique. The result revealed that GEE and SENR had combined significant positive influence on SMEs growth in the study period. The study recommended that government should commit more fund to education as a veritable tool for human capital formation. This is expected to drive SMEs growth to boost the nations economy in this period of economic downturn.