Effect of Small and Medim Enterprises on Poverty Reduction in Anambra State

Abstract

The study examined the effect of small and medium enterprises on poverty reduction in Anambra State.. In line with the objectives, four research questions and corresponding hypotheses were formulated to guide the study. The study was grounded on the Poverty Reduction Theory. A descriptive survey research design was adopted. The population of the study consist of two hundred and twenty-four (224) respondents from ten selected SMEs operating in Anambra State. Data were collected from both primary and secondary sources, with a structured questionnaire serving as the primary instrument for data collection. The data were analyzed using descriptive statistics such as frequency counts, percentage distributions and mean scores, while inferential statistics such as the Pearson Product Moment Correlation (r) techniques, through Statistical Package for Social Science (SPSS) version 25 was used to test the hypotheses. The findings revealed that; supermarkets have significant positive effect on employment generation, provision stores have significantly improved household income levels, phone repairs and accessories has significantly affected livelihood enhancement, and that poultry farms have significantly enhanced feeding availability in Anambra State. Based on these findings, the study concluded that Small and Medium Enterprises play a significant role in poverty reduction in Anambra State by creating employment opportunities, improving household income, enhancing livelihoods, and supporting food availability. Following the conclusion, the study recommended, among other things that the government and relevant economic development agencies should provide supportive policies, financial assistance, and business development programmes for supermarket operators and other SMEs to encourage expansion and sustainability, thereby creating more employment opportunities for residents in Anambra State.