Effect of Social Capital on the Growth of SMALL AND MEDIUM ENTERPRISES IN NIGER STATE

Abstract

Small and Medium Enterprises (SMEs) contribute meaningfully to economic development. They are in the forefront of output expansion, employment generation, income redistribution, promotion of indigenous entrepreneurship and production of primary goods to strengthen industrial linkages. However, despite all kinds of interventions undertaken by successive governments to improve the growth of small firms, judging by the performance of the small firms, not much progress seems to have been achieved. Hence, this study aims to investigate the impact of financial support as a social capital indicator on the growth of small and medium enterprise. The work rests on the study conducted via a structured questionnaire of 285 on a sample of 167 small firms in Suleja Local Government. Findings of the multiple regression analysis reveal that the financial support as social capital has scientific relationship with the small firm but have a low significant effect on the growth of small and medium enterprises in Niger State.