Role of Small and Medium Scale Enterprises in Boosting Foreign Direct Investment in Nigeria

Abstract

The study examined the potential for small and medium-sized enterprises in Delta state and by extension Nigeria, to attract more foreign direct investment. The study was motivated by the need to solve the problems associated with foreign direct investment in Delta State. The study was guided by three key objectives, and it was from these that appropriate research questions and hypotheses were derived. Survey design was used for this investigation. The 200 staff members of the chosen SMEs in Delta State were chosen using a simple random selection approach. Using the Cochran (1977) statistical technique, a sample size of 120 respondents was picked from a population of 200 recruited from the management, middle, and lower cadre of the chosen manufacturing enterprises. The study confirmed that SMEs in Delta State have the potential to draw foreign direct investment. Additionally, it was revealed that factors like the lowering of labour movement from rural to urban regions by fair income distribution promote foreign direct investment in Delta State. The study also discovered that SMEs in Delta State face considerable challenges in attracting foreign direct investment. The study, therefore recommended the promotion of policies that will support SMEs in Delta State.