Abstract—This paper investigates the determinants of income of cottage, micro and small scale enterprises (CMSSE S ) in Jigawa State of Nigeria. The research used primary data collected from 300 enterprises drawn from three locations base on stratified random sampling technique. To analysed the data, we used multivariate regression model. The result shows positive relationship between income of the enterprises and education, experience, government support, gender and finance. The policy implication of the study is that policy makers should continue to formulate policies that will support CMSSE S financially in Jigawa State and the country at large. Index Terms—Cottage, enterprises, finance, income, Micro, small scale. I. INTRODUCTION The Small and Medium Scale Enterprises (SMEs) are believed to be the engine room for the development of any economy in the World. The World super powers and fast growing economies, such as; the Asian Tigers and BRICS (Brazil, Russia, India, China, and South Africa) rely heavily on the growth and development of their cottage, micro, small and medium sized enterprises which enable them to attain technological superiority through motivation, imitation and innovation. They were able to further advance these industries or enterprises for increased productivity, incomes, employment and exports thereby achieving sustainable economic growth and development. The success of SMEs in countries of South Asia is a very good example of the importance of SMEs to the incomes and employment potentialities of such economies. Some of these Asian countries like; Malaysia, Taiwan, Thailand, Indonesia and Singapore whose economies were in shambles in the past, are now among the fastest growing economies in the World because of their viable SMEs. In a study, [1] noted that SMEs occupy 60% to 80% of the global economy, accounted for 98% of all private companies in the global market, contribute not less than 30% of the global Gross Domestic Product (GDP) and are responsible for 50% of the global labour force. Generally, Nigeria is richly endowed with abundant human and natural resources which can transform cottage, micro and small scale enterprises or industries to modern industries especially in the northern part of the country. These resources are capable of boosting investment viability of Jigawa state Manuscript received March 2, 2015; revised June 7, 2015. The authors are with the Department of Economics & Development Studies, Federal University Dutse, Jigawa State, Nigeria (e-mail: bellomalamali@gmail.com, mmuazuyusuf@gmail.com, ibraheemabulele@yahoo.com). and putting the state on the World map as a major exporter of the products of these industries to Europe, USA, Middle East, Asia and the Caribbean’s. This could boost the GDP, help in correcting Balance of Payment disequilibrium and improve the well-being of the citizens of the state in particular and Nigeria in general. The objectives of this research are; to assess the income potentials of cottage, micro and small scale enterprises (CMSSEs) in the state; to identify and examine factors that determine income potentials of CMSSEs. II. LITERATURE REVIEW There is no universally accepted definition of Cottage, Micro and Small Scale Enterprises. The definition depends on the context of the usage and it varies from country to country. In the discussion of informal sector, [2] noted that there is no single, uniformly acceptable, definition or classification of small-scale industries. However, the three major parameters generally considered in part or whole by most countries and institutions are: capital investment, number of employees and turnover [3]. But essentially the whole concepts of cottage, micro and small scale industries are captured under the grouping ‘Micro, Small and Medium Enterprises’ (MSMEs) or simply SMEs. But most recently, the apex regulatory agency for SMEs in Nigeria which is known as Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), [4] defined MSME as those enterprises with number of employees as follows: micro enterprise, 1-9; small enterprise, 10-49; and medium enterprise, 50-199. Thus, we adopt the definition of SMEDAN because of its significance, relevance to the context of this research and usage in Nigeria. A. Practical Gap The economy of Jigawa state is largely characterized by informal sector activities with agriculture as the major economic activity. Over 80% of the population is engaged in subsistence farming and animal husbandry. Trade and commerce are undertaken on small and medium scale, especially in agricultural goods, livestock and other consumer goods. Other informal sector activities include; blacksmithing, leather-works, tailoring services, auto repairs, metal works, carpentry, tanning, dyeing, food processing, and masonry among others (see [5], [6]). Informal sector contribution for Nigeria is currently estimated at 57.9% of GDP according to the United Nation [7]. It is also estimated that 60% of female workers in developing countries are in the informal sector [7]. Therefore, to investigate these informal sector activities is practical gap that warrant research to identify it contribution to the economy. Also, it is paucity of The Determinants of Income of Cottage, Micro and Small Scale Enterprises in Jigawa State, Nigeria Bello Malam Sa’idu, Muhammad Muazu Yusuf, and Ibrahim Muhammad Adam International Journal of Trade, Economics and Finance, Vol. 6, No. 3, June 2015 170 DOI: 10.7763/IJTEF.2015.V6.464