The Impact of Small Business on Nigeria

Topics: Small business, Economics, Gross domestic product Pages: 2 (595 words) Published: December 9, 2010
The Impact of Small Scale Business on the Nigerian Economy
Small Scale Businesses contribute immensely to the growth and development of the Nigerian economy. Some of these impacts are felt in the following areas: Increase in the nation’s Gross domestic product and Gross national product 1. Increase in Gross Domestic Product and Gross National Product The Gross National Product (GNP) is the total dollar value of all final goods and services produced for consumption in society during a particular time period. Its rise or fall measures economic activity based on the labor and production output within a country. The Gross Domestic Product (GDP) measures output generated through production by labor and property which is physically located within the confines of a country The gross domestic product GDP) and the gross national product (GNP) of the country is increased as a result of the activities of small scale businesses. The Gross domestic product of any country is the total wealth created by the citizens living in that country, the gross national product is the total wealth created by the nationals of a given country. The activities of Small scale businesses lead to growth in the economy. 2. Largest employer of Labor

The existence of small scale businesses in the country had provided job and employment to many citizens. Small scale businesses play crucial roles in the economic development of countries (Ogundele; 2006).They employ more workers than their large scale counterparts. In Nigeria for instance, Small Scale Businesses (SSB) Constitutes 85% of all firms operating in the economy, and like in most other developing countries they employed the largest number of workers. Increasing number of graduates from increasing number of public and private higher institutions who roam the streets, seeking for placement in the few declared vacancies can avail themselves of the opportunity available to make a living...
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