Role Of SMES In Rural Poverty Reduction In Wase Local Government, Plateau State, Nigeria

Abstract

Poverty continues to challenge rural communities in developing countries, including Nigeria, where limited access to resources, infrastructure, and opportunities hinders economic development. This study examined the role of Small and Medium-Scale Enterprises (SMEs) in reducing rural poverty in Wase Local Government Area, Plateau State. Data were collected from 395 SME operators using structured questionnaires and analyzed through descriptive statistics and a Generalized Linear Model (GLM). The findings revealed that SMEs have a significant positive impact on rural poverty reduction, demonstrating that their activities improve access to resources and economic opportunities in households. The results also revealed that employment generation through SMEs significantly reduces poverty, indicating that job creation directly enhances the welfare of rural communities and income obtained from SME activities positively affects household living standards, showing that higher earnings help households meet their basic needs. Finally, the findings revealed that the education level of SME operators and availability of infrastructure strongly enhance business performance and amplify the poverty reduction effect. The study concluded that SMEs play a vital role in improving rural livelihoods. Based on the findings, the study recommended policies to expand employment opportunities, increase income-generating capacity, provide skill development programs, and invest in rural infrastructure to maximize the role of SMEs in alleviating poverty and fostering sustainable rural development.