Small and Medium Size Enterprises and Multidimensional Poverty Index in Niger State, Nigeria : The Moderating Role of Youth Empowerment

Mohammed, Musa (2019) Small and Medium Size Enterprises and Multidimensional Poverty Index in Niger State, Nigeria : The Moderating Role of Youth Empowerment. PhD thesis, Universiti Malaysia Sarawak (UNIMAS).

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Abstract

Theoretically, a positive economic growth hampers poverty in a country. However, despite the increasing trend of Nigeria economic growth, poverty rate is on the rise. There are many programmes targeted to improve the well-being of the poor which yielded unfruitful results due to their poor implementation. However, Small and Medium Enterprise (SMEs) development have been recognised as essential instrument for poverty reduction. Hence, the aim of this study is to investigate the relationship between SMEs development and multidimensional poverty index (MPI) in Niger State of Nigeria. The quantitative research methods were adopted. In addition, cluster sampling was used to divide the population into two clusters (poverty rate < 80% and ≥ 80%), and convenience sampling techniques was adopted for the selection of 432 SMEs owners. Self-administrated questionnaire was employed in data collection. The first objective of the study was to construct the multidimensional poverty index of households in Niger State using an approach advanced by Alkire and Foster (2011). The MPI results of the study show that Niger State is deprived in 37% of total deprivations and the State classified as multidimensional poor. Secondly, the study also investigates the relationship between SMEs development and poverty in Niger State using Partial Least Square Structural Equation Modelling (PLS-SEM). The results show that there are positive changes in the socio-economic status of the people due to their involvement in SMEs activities of employment, innovation, human capital development and income. Lastly, the study investigates the moderating effect of youth empowerment on multidimensional poverty using PLS path modelling and moderating effect. The results indicates the moderating effect of youth empowerment on SMEs and multidimensional poverty is significant with β = 0.314, t-value = 2.462 and p-value = 0.043 (< 0.05) and it has positive significance influence on multidimensional poverty. The results imply that SMEs owners should be empowered to enable them have access to resources to finance their businesses. Policy makers, government and their agencies should create an enabling environment through the provision of facilities such viable credit support, reduction in corporate taxes and the infrastructures needed for the opportunities in the SMEs to be harnessed optimally. Keywords: SMEs, multidimensional poverty, Niger State, youth empowerment, PLS-SEM

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