Advances in Management and Applied Economics

Effects of contextual factors on the performance of small and medium scale enterprises in Nigeria: A Case Study of Ilorin Metropolis

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  • Abstract

    This study examined the effects of contextual factors on the performance of small and medium scale enterprises in Nigeria, using Ilorin metropolis as a case study. A total of one hundred and forty (140) respondents were randomly selected from the entire SMES in the state. The study employed analysis of Variance, Pearsons Correlation techniques, the Paired sample T-test methodology and the logit regression method to examine this. The Result shows that contextual factors have significant impact on SMEs and that SMEs impacted positively on economic growth of the state. Capital, Availability of raw materials, Enabling environment, Power, availability of market have positive impact on SMEs growth while state of the economy and government policy impacted negatively on the SMEs growth. The study recommends that adequate power supply and availability of capital through micro finance should be encouraged so as to ensure the growth of SMEs which will help increase employment opportunities and hence reduce the high rate of poverty in which the state has found herself.