DETERMINATION OF FACTORS AFFECTING THE GROWTH AND SURVIVAL OF SMALL AND MEDIUM ENTERPRISES (SMES) IN ANAMBRA STATE

Abstract

The need to enhance the growth and survival of Small and Medium Enterprises (SMEs) necessitated the study, to ascertain the factors affecting the growth and survival of SMEs in Anambra State. Three research questions guided the study. A total of Two thousand, eight hundred and thirty-two registered SME owners and managers constituted the population. Simple random sampling was used to select 950 SME owners and managers as the sample for the study. Structured questionnaire validated by three experts with a reliability coefficient of 0.83 was the instrument for data collection. Data collected were analyzed using Mean and Standard deviation. The study found that factors such as; Inadequate experience, Lack of creativity, Lack of focus/determination (personal competencies) and Inadequate equipment and tools, Insufficient capital, Change in the market trend (environmental factors) affect the growth and survival of SMEs. Also, the study revealed the ways through which the growth and survival of SMEs could be enhanced as; Provision of adequate financial support to SME operators by the government, philanthropists and Non-governmental Organizations (NGOs), Government provision of favourable business policies for SMEs, and Provision of business and managerial skill training programme free of charge to SMEs through public private partnership, among others. Based on the findings of the study, it was recommended among others that, SME owners and managers should equip themselves with the necessary competencies required for the growth and survival of SMEs either through formal training or apprenticeship system or both to enhance the growth and survival of Small and Medium Enterprises (SMEs).