Impact of Small-Scale Business in the Economy of Nigeria (A Case Study of GEE Agro Venture in Lagos State)

Author

Ugowe Samson Omoruyi, Husseini Abalaka Faruna, Quadri Ige Adeshola, Oluwadamilola Wasilat Muili, Kudirat Jimoh Zubair, Abuh Okpanachi


Abstract

Small-scale businesses (SSBs) play a pivotal role in driving economic growth, employment generation, and poverty alleviation in developing economies, including Nigeria. This study investigates the impact of SSBs on the Nigerian economy, with a focused case analysis of Gee Agro Venture in Lagos State. The research adopts a survey-based case study design, combining descriptive and inferential statistics to evaluate the financial capacity, operational constraints, and engagement with financial institutions among small business operators.

Findings reveal that SSBs are predominantly concentrated in the trading and service sectors due to lower capital entry requirements. Despite a high level of awareness of government financial support schemes, access to these resources remains limited, primarily due to bureaucratic bottlenecks and stringent loan conditions. The Chi-square analysis confirms a significant reliance on commercial bank loans, highlighting the paradox of accessibility and constraint—businesses engage with banks despite unfavourable lending terms because informal financing sources are inadequate.

Furthermore, the study identifies key challenges, including limited fixed asset investment, poor infrastructure, and inadequate government support implementation. These constraints hinder business scalability, technological adoption, and long-term sustainability. The research concludes that while SSBs contribute substantially to Nigeria’s economic development, systemic financial and policy reforms are essential to unlock their full potential.

The study recommends financial product innovation tailored to SSB needs, policy simplification, enhanced financial literacy, and infrastructural development as pathways to empower SSBs for sustainable growth. Strengthening this sector is critical not only for economic diversification but also for fostering inclusive, resilient development in Nigeria.


Keywords

Small-Scale Business, Economic Development, Access to Finance, Government Policy, Employment Generation, Nigeria, Business Sustainability, MSMEs


DOI : https://doi.org/10.55248/gengpi.6.0725.2549


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References


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