OWNERSHIP OF SMALL NON-FARM ENTERPRISES AND HOUSEHOLD POVERTY IN NIGERIA

Abstract

Economic diversification lies at the centre of household decision making in order to meet its consumption and other needs. Ownership of small enterprises is common among households in Nigeria and this is believed to be contributing to poverty reduction. This study explores the poverty reduction impact of household ownership of small enterprises in Nigeria using data from General Household Survey 2015. The study employs both descriptive and regression approaches in the analysis. The findings, among other things, show that households that own small enterprises have significantly lower poverty because of diversification of activities. One policy implication of this study is that households should be supported when they have the potential to manage small businesses in addition to agricultural activities. This would significantly help to reduce poverty in Nigeria.