  SMEs remain a veritable tool that generates employment opportunities. This
study examined the impact of SMEs on employment creation in the Makurdi
metropolis of Benue state. A sample size of 340 entrepreneurs was chosen from
the population of entrepreneurs (SMEs) in the Makurdi metropolis. The study
used logistic regression to analyse the impact of SME activities on employment
creation or generation in the state and found that SMEs contribute
significantly to employment creation in the state but are often faced with the
challenges of lack of capital, absence of business planning, lack of confidence
in the face of competition, unfavorable environment for the development of
SMEs, high government taxes and inadequate technical knowledge. The study
therefore recommended that the government should implement capital or credit
enhancing programmes and an enabling environment for smooth running of the
SMEs. Tax incentives should also be granted to infant enterprises, and tax
administration should be monitored to avoid excessive tax rates imposed by tax
collectors.
