Dynamic relationship between small & medium enterprises and unemployment: special reference to Lagos State, Nigeria

Abstract

This paper delves into the intricate interplay between Small and Medium Enterprises (SMEs) and unemployment, with a particular focus on Lagos State, Nigeria. As one of the most populous and economically vibrant states in Nigeria, Lagos provides a unique context to examine the impact of SMEs on employment dynamics. Though the Small and Medium Enterprises in Nigeria are performing below expectation but still contributing to the gross domestic product and reduce the rate of unemployment. The inability to meet up with befitting business environment, economic dimension and technology turbulent are major issues that SMEs are facing. This study looks into dynamic relationship between small and medium scale enterprises and unemployment with special reference to Lagos State. The study employed a cross sectional research design, while a multi-stage sampling technique was used for the study, approximately 382 was sample size but 500 copies of the questionnaire were distributed, 432 were returned and 424 found usable. Multiple Regression was utilised for data analysis. The findings revealed that to achieve a full employment rate, the government should try to put more and likely pressure on the mass in the creation of more SMEs, which could increase the Gross Domestic Product of the economy. The study concludes that there are positive and significant relationship between the variables and their dimensions.

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