Effect of Poor Power Supply On SMES Performance in Nigeria (A Case Study of Some Selected SMESs in Yobe State)

Abstract

This study is conducted to determine the Effect of poor power supply on SMEs performance in Yobe State. The study examined power availability and alternative energy cost as the independent variables and SMEs performance as the dependent variable with the aim of assessing and examining the effects of the exogenous variables on the endogenous variable. A cross sectional survey using questionnaire was conducted on 233 managers and owners of some selected SME in Yobe State, Nigeria. The collected data was analysed with SPSS version 24 to examine and assess the statistical significance of the relevant path via correlation and regression analysis. The findings disclosed a negatively non-significant relationship between the exogenous and endogenous variables. The empirical findings of this research is anticipated of being capable of enlightening and exposing the operators of SMEs and government at large to the negative effect of poor power supply and it utilization; precisely by the SMEs; and eventually serve as feedback to SMEs operators, ministry of power and energy and the federal government at large. The study recommends that Private entrepreneurs, dedicated government agencies and local communities should start developing micro-hydropower stations and solar system; more so, the current distributional system is weak and thus, vulnerable to rain, wind and vandals. A more wind resistant burglar-proof distribution network should be installed and made operational. The study would be useful to SMEs operators cum management, organizational policy and strategies makers, the government and future researchers.