SMEs are believed to be the engine room for the development of any economy because they form the bulk of business activities in a growing economy like that of Nigeria.This is manifested in the following ways:

EMPLOYMENT GENERATION

• 30% contribution to global GDP
  Employment generation capacity of about 58% of the global working population.
  SMEs play a critical role of principal safety net for the bulk of the population in developing economies.
  Their labour intensity structure accounts for their recognition as a job creating avenue

• RURAL DEVELOPMENT

  SMEs constitute major avenues for income generation and participation in economic activities in the lower income and rural brackets of developing societies especially in agriculture, trading and services.

  The employment opportunities.
  provided reduces rural-urban migration and allows for even development.

• ECONOMIC GROWTH AND INDUSTRIALIZATION

  National economic development prospects hinge on entrepreneurial energy of vibrant SMEs as most big business concerns grew from small scale to become big icons.
  SMEs protect nations from geographical cost-benefit permutations of a few multinationals who are ever prepared to close up there businesses at the slightest provocation or appearance of economic downturn.

• BETTER UTILIZATION OF INDIGENOUS RESOURCES

  The considerable low capital outlay required for setting up SMEs enables them to convert minimal resources into productive areas or ventures.
  They offer veritable outlets for technological advancement especially in businesses with rudimental technological requirements

• CONCLUSION

  Many economies developed and developing have come to realise the value of small businesses. They are seem to be characterised by dynamism, witty innovations, efficiency, and their small size allows for faster decision making process.

  The benefits of SMEs cannot be overemphasized they include; contributions to the economy in terms of output of goods and services, creation of jobs at relatively low capital cost, especially in the fast growing service sector;
  Its a vehicle for the reduction of income disparities thus developing a pool of skilled or semi-skilled workers as a basis for the future industrial expansion; improve forward and backward linkages between economically,
  Socially and geographically diverse sectors of the economy provide opportunities for developing and adapting appropriate technological approaches; offer an excellent breeding ground for entrepreneurial and managerial talent, the critical shortage of which is often a great handicap to economic development among others