Assessment of Factors Influencing Performance of Micro, Small and Medium Scale Enterprises in Toro Local Government Area, Bauchi State, Nigeria

Abstract

Micro, small and medium scale enterprises (MSMEs) are becoming increasingly important in terms of employment generation, wealth creation, and the development of nations economy. However, in Nigeria, MSMEs are characterized by low performance and inefficiency. The study is aimed at assessing the factors influencing the performance of MSMEs in Toro LGA, Bauchi State, Nigeria. The study employed a descriptive research design to achieve the objective. The population under study was six hundred and forty-two (642) MSMEs; with a sample size of two hundred and forty-six (246). Multi- stage sampling techniques was used which involve the use of stratified sampling, proportionate sampling and purposive sampling technique. The study findings revealed that access to finance with RII value of 0.79, access to infrastructural facilities with RII value of 0.78 and managerial skill with RII value of 0.76 are the most significant factors influencing the performance of MSMEs in the study area. The Pearson correlation result revealed that there is a positive relationship between marketing factors, government policies and regulations, access to finance, infrastructural facilities and performance of MSMEs while managerial factors, technological factors and entrepreneur characteristics have a negative relationship with the performance of MSMEs. The finding of the study also revealed that marketing factors, government policies and regulation are the largest predictors of MSMEs performance, while technological and entrepreneur characteristics were the poorest predictors in the study area. The study recommended that government/ NGO should start offering basic business and financial management skills as this will enable entrepreneurs to make good decisions as well as enhance their entrepreneurial skills that enable them to recognize and exploit the available opportunities and enhance their performance. Public awareness on government support programs should be introduce either through media or occasionally in public places to the rural entrepreneurs in Toro LGA, Bauchi State and Nigeria at large.