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Data Analysis of SMEs in Lagos State

This chapter presents the analysis and interpretation of data collected from 379 respondents through a questionnaire regarding small and medium enterprises in Lagos State. Key findings include demographic information, challenges faced by SMEs, and the impact of the business environment on their performance, with significant issues identified such as inadequate access to finance and regulatory constraints. The analysis also highlights the influence of technology and market conditions on the growth and profitability of these enterprises.

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0% found this document useful (0 votes)
3 views22 pages

Data Analysis of SMEs in Lagos State

This chapter presents the analysis and interpretation of data collected from 379 respondents through a questionnaire regarding small and medium enterprises in Lagos State. Key findings include demographic information, challenges faced by SMEs, and the impact of the business environment on their performance, with significant issues identified such as inadequate access to finance and regulatory constraints. The analysis also highlights the influence of technology and market conditions on the growth and profitability of these enterprises.

Uploaded by

nou211105105
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

CHAPTER FOUR

DATA ANALYSIS AND PRESENTATION

4.1 Introduction

This chapter is basically about the presentation of analysis and interpretation of collected

information in the course of this research. The analysis of data for this research work was in a

tabulated form based on the number of questions on the questionnaire. Out of the 400

questionnaires distributed, 379 questionnaires were dully filled and retrieved. The analysis of the

questionnaire distributed is stated below.

4.2 ANALYSIS AND DATA PRESENTATION

Table 1: Age of the Respondents

Response Option Frequency Percentage %

18yrs – 25 yrs 49 12.9

26 – 34 years 78 20.6

35 – 45 years 145 38.3

46 & Above 107 28.2

Total 379 100

Source: Field Survey 2024

The table above reveals that 12.9% of the respondents are between 18 - 25 years, 20.6%

of the respondents are from 26 – 34 years, 38.3% of the respondents ranges from 35 – 45

years, 28.2% of the respondents are from 46 years & above.

Table 2: Gender Distribution of the Respondents


Gender Frequency Percentage (%)

Female 231 60.9

Male 148 39.1

Total 379 100

Source: Field Survey 2024

The table above shows that 60.9% of the respondents were female while 39.1% of the

respondents were male.

Table 3: Marital Status of the Respondents

Response Option Frequency Percentage %

Single 83 21.9

Married 263 69.4

Divorced 26 6.9

Widow 7 1.8

Total 379 100

Source: Field Survey 2024

The table above shows that 21.9% of the respondents were single while 69.4%

respondents were married, 6.9% of the respondents were divorced while 1.8% of the

respondents were widow.

Table 4: Religion of the Respondents

Response Option Frequency Percentage %


Christian 211 55.7

Muslim 168 44.3

Others 0 0

Total 379 100

Source: Field Survey 2024

The table above shows that 55.7% respondents practice Christianity religion, 44.3%

respondents practice Islamic religion while none of them practice other religion different

from the two listed above.

Table 5: Occupational Status of the Respondents

Response Option Frequency Percentage %

Students 42 11.1

Self-employed 116 30.6

Civil servant 134 35.4

Unemployed 87 22.9

Total 379 100

Source: Field Survey 2024

The table above shows that 11.1% of the respondents were students, 30.6% of the

respondents were self-employed, 35.4% were civil servant while 22.9% of the

respondents were unemployed.

Table 6: Residence Area of the Respondents

Response Option Frequency Percentage %


Agege 38 10.03

Alimosho 37 9.76

Amuwo-Odofin 38 10.03

Ikeja 38 10.03

Ifako-Ijaiye 37 9.76

Apapa 39 10.29

Mushin 39 10.29

Shomolu 38 10.03

Surulere 38 10.03

Kosofe 37 9.76

TOTAL 379 100

Source: Field Survey 2024

The table above shows that 10.03% of the respondents were from Agege, 9.76% of the

respondents were from Alimosho, 10.03% of the respondents were from Amuwo-Odofin,

10.03% of the respondents were from Ikeja, 9.76% of the respondents were from Ifako-Ijaiye,

10.29% of the respondents were from Apapa, 10.29% of the respondents were from Mushin,

10.03% of the respondents were from Shomolu, 10.03% of the respondents were from Surulere

while 9.76% of the respondents were from Kosofe.

Research Question 1: What is the relationship between business environment and

performance of small and mid size enterprises in Lagos state?

Table 7: What are the primary challenges you face in your business environment that
impact your enterprise’s performance?

Response Option Frequency Percentage %

Inadequate access to finance 113 29.82

Government regulatory constraints 96 25.32

Infrastructure issues 89 23.48

High market competition 81 21.37

Total 379 100

Source: Field Survey 2024

The table above shows that 29.82% of the respondents state that the challenge they face in their

business environment that impact their enterprise’s performance is the inadequate access to

finance, 25.32% of the respondents state that the challenge they face in their business

environment that impact their enterprise’s performance is the government regulatory constraints,

23.48% of the respondents state that the challenge they face in their business environment that

impact their enterprise’s performance is the infrastructure issues while 21.37% of the

respondents state that the challenge they face in their business environment that impact their

enterprise’s performance is the high market competition.

Table 8: How would you rate the overall business environment in Lagos State for small and

mid-size enterprises?

Response Option Frequency Percentage %

Very Poor 42 11.08


Poor 87 22.96

Good 116 30.61

Very Good 134 35.35

Total 379 100

Source: Field Survey 2024

The table above shows that 11. 08% of the respondents state that the overall business

environment in Lagos State for small and mid-size enterprises is very poor, 22.96% of

the respondents state that the overall business environment in Lagos State for small and

mid-size enterprises is poor, 30.61% of the respondents state that the overall business

environment in Lagos State for small and mid-size enterprises is good, while 35.35% of

the respondents state that the overall business environment in Lagos State for small and

mid-size enterprises is very good.

Table 9: To what extent do government policies and regulations affect your business

operation?

Response Option Frequency Percentage %

A little 88 23.21
Moderately 96 25.33

Very much 104 27.44

Extremely 91 24.12

Total 379 100

Source: Field Survey 2024

The table above shows that 23.21% of the respondents state that government policies and

regulations affect their business operation a little, 25.33% of the respondent state that

government policies and regulations affect their business operation moderately, 27.44% of the

respondent state that government policies and regulations affect their business operation very

much while 24.02% of the respondent state that government policies and regulations affect their

business operation extremely.

Table 10: How has the availability of technology influenced your business performance in

the last 12 months?

Response Option Frequency Percentage %

No influence 55 14.51
Minor influence 56 14.77

Moderate influence 142 37.47

Significant influence 126 33.25

Total 379 100

Source: Field Survey 2024

The table above shows that 14.51% of the respondents state that the availability of technology

have no influence on their business performance in the last 12 months, 14.77% of the

respondents state that the availability of technology have a minor influence on their business

performance in the last 12 months, 37.47% of the respondents state that the availability of

technology have moderate influence on their business performance in the last 12 months, while

33.25% of the respondents state that the availability of technology have significant influence on

their business performance in the last 12 months.

Table 11: In terms of growth and profitability, how do you perceive the impact of the local

market conditions on your enterprise over the past year?

Response Option Frequency Percentage %

Negative Impact 102 26.9


No Impact 96 25.3

Positive Impact 93 24.5

Very Positive Impact 88 23.2

Total 379 100

Source: Field Survey 2024

The table above shows that 26.9% of the respondents strongly agree that the government has

good intentions to reduce unemployment but the will and commitment to effectively implement

the policies are grossly lacking, 25.3% of the respondents agree that the government has good

intentions to reduce unemployment but the will and commitment to effectively implement the

policies are grossly lacking, 24.5% of the respondents strongly disagree that the government has

good intentions to reduce unemployment but the will and commitment to effectively implement

the policies are grossly lacking, while 23.2% of the respondents disagree that the government has

good intentions to reduce unemployment but the will and commitment to effectively implement

the policies are grossly lacking.

Research Question 2: What are the factors limiting the development of small and medium

size enterprises in Lagos state?

Table 12: What are the most significant challenges faced by SMEs in accessing finance in

Lagos State?
Response Option Frequency Percentage %

High interest rates 109 28.7

Lack of collateral 116 30.5

Bureaucratic processes 134 35.5

Limited financial products 20 5.3

Total 379 100

Source: Field Survey 2024

The table above shows that 28.7% of the respondents state that high interest rates is the most

significant challenges faced by SMEs in accessing finance in Lagos State, 30.5% of the

respondents state that lack of collateral is the most significant challenges faced by SMEs in

accessing finance in Lagos State, 35.5% of the respondents state that bureaucratic processes is

the most significant challenges faced by SMEs in accessing finance in Lagos State while 5.3% of

the respondents state that limited financial products is the most significant challenges faced by

SMEs in accessing finance in Lagos State.

Table 13: To what extent do regulatory frameworks impact the operational costs of SMEs

in Lagos State?

Response Option Frequency Percentage %

A little extent 66 17.41

Moderately 79 20.84
Large extent 113 29.82

Extreme extent 121 31.93

Total 379 100

Source: Field Survey 2024

The table above shows that 17.41% of the respondents state that regulatory frameworks impact

the operational costs of SMEs in Lagos State to a little extent, 20.84% of the respondents state

that regulatory frameworks impact the operational costs of SMEs in Lagos State moderately,

29.82% of the respondents state that regulatory frameworks impact the operational costs of

SMEs in Lagos State to a large extent, while 31.93% of the respondents state that regulatory

frameworks impact the operational costs of SMEs in Lagos State to an extreme extent.

Table 14: Technological capability plays a significant role on the innovation and

competitiveness of SMEs in Lagos?

Response Option Frequency Percentage %

Strongly Agree 162 42.7

Agree 107 28.2


Strongly Disagree 41 10.8

Disagree 69 18.2

Total 379 100

Source: Field Survey 2024

The table above shows that 42.7% of the respondents strongly agree that technological capability

plays a significant role on the innovation and competitiveness of SMEs in Lagos, 28.2% of the

respondents agree that technological capability plays a significant role on the innovation and

competitiveness of SMEs in Lagos, 10.8% of the respondents strongly disagree that

technological capability plays a significant role on the innovation and competitiveness of SMEs

in Lagos, while 18.2% of the respondents disagree that technological capability plays a

significant role on the innovation and competitiveness of SMEs in Lagos.

Table 15: The level of competition in the market affects the pricing strategies of SMEs in

Lagos State?

Response Option Frequency Percentage %

Strongly Agree 172 45.4

Agree 127 33.5


Strongly Disagree 39 10.3

Disagree 41 10.8

Total 379 100

Source: Field Survey 2024

The table above shows that 45.4% of the respondents strongly agree that the level of competition

in the market affects the pricing strategies of SMEs in Lagos State, 33.5% of the respondents

agree that the level of competition in the market affects the pricing strategies of SMEs in Lagos

State, 10.3% of the respondents strongly disagree that the level of competition in the market

affects the pricing strategies of SMEs in Lagos State, while 10.8% of the respondents disagree

that the level of competition in the market affects the pricing strategies of SMEs in Lagos State.

Research Questions 3: What are the effects of business environment on small and medium

size enterprises in Lagos state?

Table 16: Current business environment in Lagos State affect the profitability of SMEs?

Response Option Frequency Percentage %

Strongly Agree 173 45.6


Agree 124 32.7

Strongly Disagree 39 10.3

Disagree 43 11.3

Total 379 100

Source: Field Survey 2024

The table above shows that 45.6% of the respondents strongly agree that current business

environment in Lagos State affect the profitability of SMEs, 32.7% of the respondents agree that

current business environment in Lagos State affect the profitability of SMEs, 10.3% of the

respondents strongly disagree that current business environment in Lagos State affect the

profitability of SMEs, while 11.3% of the respondents disagree that current business

environment in Lagos State affect the profitability of SMEs.

Table 17: Environmental factors (such as pollution regulations, waste management)

influence SME operations in Lagos State?

Response Option Frequency Percentage %

Strongly Agree 162 42.7

Agree 107 28.2


Strongly Disagree 41 10.8

Disagree 69 18.2

Total 379 100

Source: Field Survey 2024

The table above shows that 42.7% of the respondents strongly agree that environmental factors

(such as pollution regulations, waste management) influence SME operations in Lagos State,

28.2% of the respondents agree that environmental factors (such as pollution regulations, waste

management) influence SME operations in Lagos State, 10.8% of the respondents strongly

disagree that environmental factors (such as pollution regulations, waste management) influence

SME operations in Lagos State, while 18.2% of the respondents disagree that environmental

factors (such as pollution regulations, waste management) influence SME operations in Lagos

State.

Table 18: Socio-cultural context of Lagos State impact the growth of SMEs?

Response Option Frequency Percentage %

Strongly Agree 172 45.4

Agree 127 33.5

Strongly Disagree 39 10.3


Disagree 41 10.8

Total 379 100

Source: Field Survey 2024

The table above shows that 45.4% of the respondents strongly agree that socio-cultural context

of Lagos State impact the growth of SMEs, 33.5% of the respondents agree that socio-cultural

context of Lagos State impact the growth of SMEs, 10.3% of the respondents strongly disagree

that socio-cultural context of Lagos State impact the growth of SMEs, while 10.8% of the

respondents disagree that socio-cultural context of Lagos State impact the growth of SMEs.

Table 19: Political stability of Lagos State affects the investment decisions of SMEs?

Response Option Frequency Percentage %

Strongly Agree 182 48

Agree 143 37.7

Strongly Disagree 31 8.2

Disagree 23 6.1

Total 379 100

Source: Field Survey 2024

The table above shows that 48% of the respondents strongly agree that political stability of

Lagos State affects the investment decisions of SMEs, 37.7% of the respondents agree that

political stability of Lagos State affects the investment decisions of SMEs, 8.2% of the

respondents strongly disagree that political stability of Lagos State affects the investment

decisions of SMEs, while 6.1% of the respondents disagree that political stability of Lagos State

affects the investment decisions of SMEs.


Table 20: Economic stability of Lagos State play in the sustainability of SMEs?

Response Option Frequency Percentage %

Strongly Agree 162 42.7

Agree 107 28.2

Strongly Disagree 41 10.8

Disagree 69 18.2

Total 379 100

Source: Field Survey 2024

The table above shows that 42.7% of the respondents strongly agree that economic stability of

Lagos State play in the sustainability of SMEs, 28.2% of the respondents agree that economic

stability of Lagos State play in the sustainability of SMEs, 10.8% of the respondents strongly

disagree that economic stability of Lagos State play in the sustainability of SMEs, while 18.2%

of the respondents disagree that economic stability of Lagos State play in the sustainability of

SMEs.

Table 21: What are strategic variables that can influence the development of small and

medium size enterprises in Lagos state?

Response Option Frequency Percentage %

Information technology 31 8.2

Management skill 26 6.9

Education 193 50.9


Adequate Finance 129 34

Total 379 100

Source: Field Survey 2024

The table above shows that 8.2% of the respondents state that strategic variables that can

influence the development of small and medium size enterprises in Lagos state is Information

technology, 6.9% of the respondents state that strategic variables that can influence the

development of small and medium size enterprises in Lagos state is Management skill, 50.9% of

the respondents state that strategic variables that can influence the development of small and

medium size enterprises in Lagos state is Education, while 34% of the respondents state that

strategic variables that can influence the development of small and medium size enterprises in

Lagos state is Adequate Finance.

4.3 Discussion of Findings

The data used for the purpose of this study include primary data. The primary data were

adequately gotten via questionnaire in which 400 questionnaires were administered. However,

only 379 were dully filled and retrieved which represent 95% level of response rate.

Many of the respondents were dominated by age bracket of 35 - 45 years which scored 38.3%

followed by age bracket of 46 and above years giving a score of 28.2% which indicates that the
respondents are reasonable and matured in the mind and tolerable. Besides, the study also shows

that 21.9% respondents were single, 69.4% respondents were married, 6.9% of the respondents

were divorced while 1.8% of the respondents were widow. It also stated that 55.7% of the

respondents practice Christianity religion, 44.3% of the respondents practice Islamic religion

while none of them practice other religions. Also, the study shows that 60.9% of the respondents

were females while 39.1% were male. This shows that the survey conducted was based on both

genders. Finally, the study shows that 11.1% respondents were students, 30.6% of the

respondents were self-employed, and 35.4% were civil servant while 22.9% of the respondents

were unemployed.

From the research questions, research question 1 (RQ1) which is; what is the extent to

which entrepreneurship development influence employment generation in Somolu local

government area of Lagos state?

To answer the research question above according to the response of the respondents, Table 7

shows that 11% of the respondents state that the extent to which entrepreneurship development

influence employment generation in Somolu local government area of Lagos state is to a very

great extent, 31% of the respondents state that the extent to which entrepreneurship development

influence employment generation in Somolu local government area of Lagos state is to a great

extent, 35% of the respondents state that the extent to which entrepreneurship development

influence employment generation in Somolu local government area of Lagos state is to a small

extent, while 23% of the respondents state that the extent to which entrepreneurship

development influence employment generation in Somolu local government area of Lagos state

is to a very little extent.


From the research questions, research question 2 (RQ2) which is; what is the

entrepreneurship challenges affecting unemployment reduction in Somolu local

government area of Lagos state?

To answer the research question above according to the response of the respondents, Table 11

shows that 28.7% of the respondents state that one of the entrepreneurship challenges affecting

unemployment reduction in Somolu local government area of Lagos state is inadequate training

of individuals, 30.5% of the respondents state that one of the entrepreneurship challenges

affecting unemployment reduction in Somolu local government area of Lagos state is lack of

enough resources/funds, 35.5% of the respondents state that one of the entrepreneurship

challenges affecting unemployment reduction in Somolu local government area of Lagos state is

inadequate Learning Facilities while 5.3% of the respondents state that there are other factors

that stands as entrepreneurship challenges affecting unemployment reduction in Somolu local

government area of Lagos state to apart from the ones listed by the researcher.

From the research questions, research question 3 (RQ3) which is; how can

entrepreneurship development reduce the rate of unemployment in Somolu local

government area of Lagos state?

To answer the research question above according to the response of the respondents, Table 12

shows that 45.6% of the respondents strongly agree that one of the ways entrepreneurship

development can reduce the rate of unemployment in Somolu local government area of Lagos

state is through the efficient use of funds and entrepreneurship development/ administration,

32.7% of the respondents agree that one of the ways entrepreneurship development can reduce

the rate of unemployment in Somolu local government area of Lagos state is through the efficient

use of funds and entrepreneurship development/ administration, 10.3% of the respondents


strongly disagree that entrepreneurship development can reduce the rate of unemployment in

Somolu local government area of Lagos state is through the efficient use of funds and

entrepreneurship development/ administration, while 11.3% of the respondents disagree that

entrepreneurship development can reduce the rate of unemployment in Somolu local

government area of Lagos state is through the efficient use of funds and entrepreneurship

development/ administration.

From the research questions, research question 4 (RQ4) which is; what is the relationship

between job creation and entrepreneurship development in Somolu local government area

of Lagos state?

To answer the research question above according to the response of the respondents, Table 20

shows that 8.2% of the respondents strongly agree that there is no relationship between job

creation and entrepreneurship development in Somolu local government area of Lagos state,

6.9% of the respondents agree that there is no relationship between job creation and

entrepreneurship development in Somolu local government area of Lagos state, 50.9% of the

respondents strongly disagree that there is no relationship between job creation and

entrepreneurship development in Somolu local government area of Lagos state, while 34% of the

respondents disagree that there is no relationship between job creation and entrepreneurship

development in Somolu local government area of Lagos state.

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