Inflation and Small and Medium Enterprises Growth in Ogbomoso Area, Oyo State, Nigeria

Abstract

The main purpose of this study is to ascertain impact of inflation in the growth of small and medium enterprises in Ogbomoso area of Oyo State, Nigeria.  The data considered was secondary as obtained from Central Bank of Nigeria and Federal Office of Statistics.  The results showed that the parameters estimates associate with the independent variable inflation rate is positive (i.e. 0.164X₁).  Also, there is a positive relationship between parameter estimate associate with capacity utilization (i.e. 0.048X­₂) and parameter estimate associate shows positive relationship with environmental factors.  It is conclusive that there is a direct relation between growth rate in real GDP (i.e. productivity) and inflation rate in Nigeria.

Keywords: Inflation, growth of SMES, Ogbomoso area, Nigeria.