Effect of Infrastructural Facilities on SMEs Growth in Nigeria

Abstract

Small and medium scale enterprises are engine of economic growth. SMEs growth in Nigeria has been inhibited by the dearth of infrastructural facilities in the country. These facilities range from power supply, water supply, road and rail network, telecommunication, health facilities and so on. Provision of these facilities is the responsibility of government but almost all these facilities are in short supply or inadequate in Nigeria. This situation has negatively affected the performance of SMEs in the Nigerian economy. This study examines the effect of infrastructural facilities on performance of SMEs in Nigeria. The research methodology adopted is the quantitative research methodology. A survey research design was used and a judgmental and convenience sampling procedure was applied in collecting data from 200 respondents selected from four major SMEs clusters in Lagos. The data collected with the use of questionnaires were analyzed with percentages and chi-square for testing hypothesis formulated for the study. The results obtained shows that many small and medium scale operators in Nigeria provide for the basic infrastructure themselves. The huge cost involves in providing this basic amenity has put out many small and medium scale business operators out of business. Infrastructure like power and water are the life wire of any business enterprises. Therefore, small and medium scale business enterprises need infrastructural facilities to grow.