EFFECT OF EMPLOYMENT CREATION ON SMALL AND MEDIUM SCALE ENTERPRISES IN GASSOL LOCAL GOVERNMENT AREA, TARABA STATE

ABSTRACT This study investigated the effect of employment Creation on Small and Medium Scale Enterprises (SMEs) in Gassol Local Government Area, Taraba State, focusing on four major determinants—financial resources, management practices, market access, and government support programs. Using 198 valid responses from SME owners and employees, the study achieved a high response rate of 89.19%, ensuring reliability of findings. Results revealed that financial resources have the strongest positive influence on employment Creation (β = 0.564, p < 0.001, R² = 0.398), as adequate access to capital and credit enables SMEs to expand their workforce and sustain operations. Management practices also emerged as a key determinant (β = 0.498, p < 0.001, R² = 0.412), showing that strategic planning, leadership, and staff development significantly improve employment capacity. Market access had a notable positive effect (β = 0.423, p < 0.001, R² = 0.285), confirming that businesses with better access to local and digital markets are more likely to grow and hire more workers. Government support programs also contributed to job creation, though modestly (β = 0.365, p < 0.001, R² = 0.198), due to bureaucratic inefficiencies limiting their impact. The study concludes that financial strength and managerial competence are the most critical internal drivers of employment growth, while market access and government support serve as vital external enablers. It recommends that SMEs be provided with easier access to credit, improved managerial training, expanded market linkages, and reformed government programs that eliminate administrative barriers to foster sustainable job creation and local economic development.