ASSESSMENT OF THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMES) AS A CATALYST FOR EMPLOYMENT GENERATION AND WEALTH CREATION IN NIGERIA.

Small and medium enterprises have been considered as the engine of economic growth, development and the promotion of employment generation and potential at low capital cost. Although various government instituted policies and effort to develop small medium enterprises in Nigeria, not much has been achieved because of their inability to access funds to finance their development to bring about the much needed economic growth, development and employment generation in Nigeria. The main objective of the study is to critically evaluate the performance of SMEs and implications for employment generation in Nigeria and also to examine the contribution of SMEs to socio-economic development of Nigeria. The study was conducted in Nasarawa State, North-central Nigeria with attention paid to the 13 local government areas in the state. Inadequate funding, poor location, poor government policies and programmes, insecurity and lack of management skill have been the major factors militating against the performance of small and medium enterprises towards employment generation in Nigeria. The study used questionnaire as an instrument of primary data collection from a stratified random sample of 150 SMEs from a population of 240 SMEs in Nasarawa state, Nigeria. Descriptive statistics and Regression Analysis Model were used to analyze the hypothesis through the use of SPSS. The study recommends that the government should provide secure, conducive, political environment that enhance greater performance of SMEs that guarantees employment reforms. The government should as a matter of urgency priorities the SMEs sector by giving it devoted practical and visible attention with a view to making it virile, vibrant, focused and productive. The study contributed to the literature by providing a contextual understanding of SMEs and its performance towards employment generation in Nigeria.