THE STATE, THE CHURCH AND SME DEVELOPMENT IN THE SOUTH-EASTERN NIGERIA

Abstract

Interest in Small and Medium Enterprises (SMEs) development as well as its corresponding impact on economic development continues to be in forefront of policy debate in Nigeria, particularly South-East. As a result, various South East governments embarked on several policies and programmes ostensibly aimed at accelerating economic growth of the South-East through harnessing of the gains of Small and Medium Enterprises as was done by the newly industrialized countries. Regrettably, most of the policies/programmes were not protective of the SMEs, as adequate institutional backing was not given to them. South-Eastern Nigeria's obvious lack of commitment to SMEs is responsible for high cost of doing business in the region especially as it affects Small and Medium Enterprises operation. This paper examines the role of the state and the church in the development of SMEs in the South-East. Data for this study was generated through secondary sources. This paper adopted Keynesian theory as a framework of
analysis. The findings of the study indicate that SMEs contribute significantly to the growth of any economy if given the required institutional backing for boosting SMEs. The study further revealed that there is a strong relationship between South-East development and development of SMEs. The study concludes that if adequate measures are not put in place by the South East governments for comprehensive development of the SMEs, development will continue to elude the region. On the basis of this, the study recommends that government should formulate/implement protective policies, spend more in financing SMEs, create conducive environment and provide constant electricity so that SMEs operators will be able to compete favourably with their foreign counter-parts, thereby making South-East the economic hub of Nigeria.