Small and medium enterprises have been considered as the engine of economic growth and for promoting
equitable development. The major advantage of the sector is its employment potential at low capital cost. The
labour intensity of the SME sector is much higher than that of the large enterprises. The role of small and
medium enterprises in the economic and social development of the country is well established. The sector is a
nursery of entrepreneurship, often driven by individual creativity and innovation.
The paper concludes that besides the growth potential of the sector and its critical role in the manufacturing and
value chains. There wide spread in Nigeria and the multiplier effects they have on the rest of the economy enable
them to be the engine of economic progress. It was also noted that the SME sector is the main driving force
behind job creation, poverty reduction, wealth creation, income distribution and reduction in income disparities.
Most of the government interventions failed to create a much needed transformation due to poor coordination
and monitoring and policy inconsistencies.
SME sector also formed the vanguard of the modern enterprise sector and presents the propelling force of
economic modernization and growth in Nigeria. They are important sector that need to be adequately factored
into policy making and programme implementation in Nigeria.