IMPACT OF NON GOVERNMENTAL ORGANIZATIONS ON THEDEVELOPMENT OF SMALL AND MEDIUM SCALE ENTERPRISES IN THEFEDERAL CAPITAL TERRITORY ABUJA

Abstract

This study examined the impact of non-governmental organisations (NGOs) on the
development of small and medium-scale enterprises (SMEs) in the Federal Capital Territory
(FCT), Abuja, with a comparative perspective from Ghana. A descriptive survey research
design was adopted because it allowed for the collection of quantitative data without
manipulation of variables. The target population comprised owners and managers of
registered SMEs in the FCT who had benefited from NGO interventions, with a total
population of approximately 38,000 according to the Small and Medium Enterprises
Development Agency of Nigeria (SMEDAN, 2022). Using the Krejcie and Morgan (1970)
sample determination table, a sample size of 416 respondents was drawn through a multistage sampling technique involving purposive, stratified, and simple random sampling
procedures. Primary data were collected through a structured questionnaire based on a fivepoint Likert scale. Data analysis was conducted using Partial Least Squares Structural
Equation Modelling (PLS-SEM) with SmartPLS version 3. The findings revealed that both
entrepreneurial training and financial support programmes by NGOs had significant positive
effects on SME development in the FCT, Abuja. Entrepreneurial training improved
managerial competence and innovation, while financial support enhanced access to capital
and business expansion. However, limited post-training support and weak monitoring
mechanisms reduced long-term sustainability. The study recommended that NGOs intensify
practical training, strengthen follow-up systems, and collaborate with government agencies
and financial institutions to enhance the effectiveness of SME development programmes.