Small and Medium scale enterprises are veritable tool for economic growth and development impact on the economy

BACKGROUND OF THE STUDY The small and medium scale enterprises (SMEs) have been generally acknowledged as the bedrock of the industrial development of any country. Apart from the numerous goods and services, they provide a veritable means of large scale employment as they are usually labour intensive. (Yerima et al 2007). In developing countries, Nigeria have since the 1970‟s shown increased interest in the financing and promoting small and medium scale enterprises from three main reasons. According to Owuallah, (19999:9), these reasons are: i. Transformation of traditional or indigenous industry ii. Increase in job creation. iii. Redistribution of wealth and income
They also provide training grounds, for entrepreneur even as they generally rely on more on the use of local materials. Osaba, (1987:105) says that, the distribution of goods has continued to be the only viable and reliable option for development, growth and survival of any economy. The work explore the role and contribution, constraints and prospects of the small as it contributes to the growth and development of the Nigeria economy, and the government efforts, internal and external support. (SMES) have been full recognized by government and development experts as the main engine of economic growth and major factor in promoting private sector development and partnership (Adeusiyi, 1997:95).
Ajakaiye (2003) state that the central bank of Nigeria (CBN) has initiated a project for baseline economic studies to develop in integrated information
system for SMEs to foster better implementation of small and medium industries equity investment scheme (SMES). Federal government has facilitate SMEs by established National Association of Small and Medium Industries (NASSI), Central for management development (CMD), Fund for Small Scales Industries (FUSSI). This is because of her concern for the survival of the SMEs.