This study is aimed at examining the impact which infrastructures have on SMEs performance.
The main objective of the study is to critically examine the impacts which certain infrastructures
have on the performance of small and medium scale enterprises and to achieve this, salient
issues on main infrastructures such as power/electricity, water and transportation were
examined to analyse what impacts they have on SMEs using some performance measures such
as; business survival, profitability, sales turnover and product/service delivery. The research
design utilized for this study was the case study research design while the population includes 33
registered SMEs in Ogun-State. A total of 100 questionnaires were administered to the target
sample to find out the effects of the mentioned infrastructures on the performance of SMEs.
Both the stratified and the simple random sampling techniques were utilized during the course
of the study. To achieve the objectives of the study, two hypotheses were formulated and tested
from the structure of the research questions. Furthermore, ANOVA was used in testing these
hypotheses with the help of SPSS. The findings show that there is a significant positive
correlation between infrastructures and SME performance; this implies that infrastructures play
a huge role in ensuring the successful business operation of SMEs. It is therefore recommended
that government should adequately provide these basic infrastructures for SMEs as most
infrastructures cannot be afforded by the SMEs themselves. Also, SMEs should also do more to
attract governmental attention and interest.
3.0 FINDINGS AND DISCUSSION
This study discovered that finance and infrastructure as the most influential factors that affect
the performance of SMEs among other challenges. The result of this study is in line with the
study of (Olutunla, 2005; Osamwonyi & Tafamel, 2010, Mohammed Sani Abdullahi, Balarabe
Abubakar Jakada, Salwa Kabir (2016); Dr. AKINYELE, Samuel Taiwo, AKINYELE, Feyisayo Esther,
AJAGUNNA, Oladimeji Daniel (2016;, Fred Ojochide Peter et al (2018), with this the study is
supported with prior studies.
Therefore, Nigeria as an open economy was affected by the global economy issues such as
lower crude oil price which is one way or another influence to SMEs in the country, if the
findings of the study are taking into consideration practically by the concerned organization,
agencies own by Government or private individuals the problem of Nigeria concentrating on
crude oil as the major source of revenue will be an history as a result of flourishing the SMEs
sector with the identify result of the study, and at the same time it will make the Government
to diversify their revenue generation, and also it will bring about innovation in terms of
products and services.
4.0 CONCLUSIONS AND RECOMMENDATIONS
The significance of this study is that it provides optimal understanding to existing, new or potential
entrepreneurs of SMEs in Nigeria about the factors that affect their business performance, with the
objective of reducing the risk of failure and increase the chance of success. This is to ensure that their
business continue to grow and ultimately help to support the growth and development of the Nigeria
economy. They are numbers of factors that affect SMEs in Nigeria. In an attempt to finds out the factors
that affect or influence the performance of SMEs the most, this study exclusively find out and concluded
that finance, infrastructure, and training are the most significant factors that adversely affect or
influence the performance of SMEs in Nigeria.
Driven by the findings of this study, SMEs in Nigeria have a long way to go for the sector to be
significant, focused, productive enough, and play the crucial roles it is expected to play scientifically in
contributing to the growth and development of the Nigerian economy. The SMEs should be seen as an
extremely important sector of the economy requiring specific incentives to assist its development. From
the findings of this study, the following are its implications and recommendations suggested to promote
and develop a vibrant SMEs sector toward performing up to its expectation in Nigeria:
The government should encourage financial institutions to lend to SMEs at reduced interest rate (single
digit rates), and the collateral to be demanded should be fair or the collateral should not be demanded,
the project embark upon should serve as the collateral. Mandatory interest rate concession for SMEs
should be provided, and the authority should make the loan easier to be accessed. The government
should make sure cooperative financial institutions enjoy its patronage. There is dire need for the
government to provide and improve the existing infrastructural facilities such as roads, electricity, water
supply and telecommunication facilities. The infrastructural facilities provided should be of high
standard, in terms of Stable Electricity supply, adequate and efficient water supply, modern
telecommunication, advanced technology and good transportation systems are important to the well-
being of every business in order to achieve performance. And also The Government should encourage
SMEs entrepreneurs to make use of the Entrepreneurial Development Programme (EDP) which is a
programme aimed at improving the skill level in the SMEs sector. The EDP involves training of potential
entrepreneurs in entrepreneurial skills. EDP could assist SMEs by lessening or eradicating the challenges
of skills shortages. SMEs entrepreneurs should inculcate the habit of training and developing their
management and workforce in order to build a strong capacity for meeting the challenges of time and
embrace and take advantage of developments in information and telecommunication technology and
other technological areas.
In addition, if the recommendations stated above are taking into consideration practically it will enable
SMEs through innovations in terms of products and services, and Nigeria concentration on crude oil as it
major sources of revenue generation will be abolish, with that diversification into others areas of SMEs
will be achieved.