Abstract
The research work was aimed at investigating the growth of small and medium scale enterprises in relation to economic development and to analyze the effect of small and medium scale enterprises in the Nigerian economy development. Starting with a general recourse to study the small and medium scale enterprises at its root; the essay attempted to study institutions responsible for the growth of small and medium scale enterprises in Nigeria. Regression analysis was done on the Gross Domestics Product (GDP) and small and medium scale enterprises and the findings shows that 5% level of significance, the constant term and the estimates of ISSP are both statistically significant
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