Driver of Economic Growth in Nigeria: Race between Small and Medium Scale Enterprises & Multinational Companies in Nigeria

Abstract

The study empirically examined the Drivers of Economic Growth in Nigeria: Race between Small and Medium Scale Enterprises and Multinational Companies in Nigeria. Longitudinal research design was employed and secondary data were sourced through the CBN Annual Bulletin (2007– 2018). Least square regression was used to establish the impact and relationship among the variables measured. The study found that both drivers of economic growth Small and Medium Scale Enterprises and Multinational Companies have a positive impact on the economic growth of Nigeria. It also revealed that Multinational Company has contributed more to economic growth than Small and Medium Scale Enterprises due to strong financial base and strong market base. The study recommends that; government should continue to provide enabling environment for business activities to strive to cushion the effect of poverty; Small and Medium Enterprises should be given adequate support to have more access to more funds and consistent training for the SMEs owners, and the government should also embark on the campaign for the use of the locally produced product by restricting the importation of goods and consumption of the foreign product which will naturally expand the market base for SMEs and allow more Foreign Direct Investments in Nigeria