SMALL AND MEDIUM SCALE ENTERPRISES AND EMPLOYMENT SUSTAINABILITY IN KOGI STATE, NIGERIA

Abstract

This study investigates the effect of Small and Medium Scale Enterprises (SMEs) on employment sustainability in Kogi State, Nigeria. Specifically, the study examines the extent to which SMEs influence employment sustainability, identifies the mechanisms through which SMEs generate employment opportunities, highlights available small-scale enterprise opportunities, and assesses the challenges facing SMEs in the state. A quantitative research design was adopted, relying primarily on primary data. The study population consisted of 120 SME owners selected from three enterprises, from which a sample size of 80 respondents was determined using the Taro Yamane formula. Data were analyzed using descriptive statistics, while hypotheses were tested using the t-test technique. The results reveal that SMEs have a statistically significant effect on employment sustainability and contribute substantially to employment generation in Kogi State. The findings further indicate that SMEs provide diverse employment opportunities across sectors such as hairdressing, handset repairs, poultry farming, bead making, carpentry, tailoring, bakery operations, and small-scale manufacturing. Based on these results, the study recommends that government interventions aimed at promoting SMEs should be transparent, adequately funded, and devoid of political interference, particularly with respect to financial support. The study concludes that SMEs remain a critical and viable instrument for achieving sustainable employment generation in Kogi State, Nigeria.