FACTORS INFLUENCING BUSINESS PERFORMANCE OF MANUFACTURING SMALL AND MEDIUM ENTERPRISES (SMES) IN NIGERIA

Abstract

Small and Medium-sized Enterprises (SMEs) play a vital role in the economic development of all nations. Therefore, it is vital to evaluate the performance of manufacturing SMEs to support that role. The aim of this study was to investigate the factors influencing business performance of manufacturing Small and Medium Enterprises in Nigeria. This was achieved by establishing whether access to technology by employees, determining if level of education of operatives and examining the role of human resource management have effect on the business performance of manufacturing Small and Medium Enterprises in Nigeria. In this study, manufacturing industry include agro based, designed and manufacturing related services sectors. The questionnaire was designed based on Likert scale of 1-5 with 1 as strongly disagreed and 5 as strongly agreed. A total of 219 questionnaires were sent out to fully registered manufacturing companies with corporate affairs commission (CAC) in Ota, Lagos, Kano, Kaduna, Aba and Nnewi towns were manufacturing is visible. 153 questionnaires representing 70% of the sample were returned and deemed useable. The data were analyzed using percentage and linear regression for descriptive and inferential analysis respectively. The study established that majority (92%) of the respondents agreed that access to technology; level of educational attainment of operative and human resource management were significant in explaining business performance of manufacturing Small and Medium Enterprises in Nigeria. The study concluded that access to technology, educational level of operatives and human resource management contribute to business performance of manufacturing small and medium enterprises in Nigeria. The study recommended that employees in the manufacturing industry should be trained in new and current technology that will enhance the productive capacity of employees and as a result improve on business performance of manufacturing small and medium enterprises in Nigeria.