POVERTY ALLEVIATION IN NIGERIA: WHAT IS THE ROLE OF SMALL SCALE BUSINESS?

Nigeria is faced with challenges of poverty and studies have shown that more than three quarters of the population live below poverty line. Against this backdrop, the study investigated the role of Small Scale Enterprises (SSEs) in improving the economic status of traders engaged in the sector.

The study adopted Neoliberal theory and Lewis’ Culture of Poverty. Cross sectional survey design was used. A sample size of 200 respondents was used for quantitative analysis.

The mean age of the respondents was 34±8.7. Most respondents (64.0%) were male and married (52.0%). There were 13.5% of the traders who described their economic status as buoyant prior to engagement in SSEs. At least 14.0% of the traders said they had buoyant economic status consequent upon engagement in SSEs. There were 92.0% of the traders who said SSEs were profitable and as stable source of income for their survival. Qualitative data showed that access to loan, taxes, electricity, and security to lives and properties were major challenges that hindered the growth of SSEs in the study area.

SSEs empowered traders to provide for basic needs and lived above poverty line. The sector is a major employer of youths and has remained sustainable to family support and means to obtain positive life chances. Government should improve the supply of electricity, construction of viable roads and provision of loan facilities. This may help make the sector attractive, competitive and sustainable to combat youth unemployment and poverty.