ENTREPRENEURSHIP ECONOMIC THEORY AND SUSTAINABILITY OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN NIGERIA

This study explores the application of Entrepreneurship Economic Theory in advancing the sustainable growth of Small and Medium Enterprises (SMEs) in Nigeria. Building on Schumpeter’s concept of innovation and "creative destruction," the study demonstrates how entrepreneurial strategies can foster economic transformation by optimizing resources, creating markets, and enhancing resilience. SMEs, which contribute approximately 48% to Nigeria’s GDP and employ over 84% of the private workforce, play a vital role in driving innovation, economic diversification, and social inclusion. Despite these contributions, systemic challenges such as infrastructure deficits, limited financing, and inconsistent policies restrict their growth. Using a desk review approach, the study synthesizes secondary data to reveal that Nigerian SMEs, particularly in sectors like fintech and agritech, exhibit significant innovative potential but require supportive environments for sustainable expansion. Key recommendations include regulatory reforms, access to specialized financial tools, skill development initiatives, and investment in infrastructure. The study underscores the alignment of entrepreneurship with Sustainable Development Goals (SDGs) and advocates for public-private partnerships to unlock the untapped potential of SMEs. By addressing these systemic barriers, stakeholders can position Nigerian SMEs as engines of inclusive and sustainable economic development. This study provides actionable recommendations for policymakers, educators, financial institutions, and entrepreneurs while enriching academic discourse on sustainable SME development.