Effect of Security Threats on Business Survival and Growth of Small and Medium Size Enterprises (SME’S) in Donga LGA, Taraba State, Nigeria

Abstract

Insecurity has emerged as one of the most formidable challenges to economic development and business sustainability in Nigeria, particularly in rural and semi-rural areas. This study investigates the effect of security threats on business survival and growth of small and medium size enterprises in Donga Local Government Area (LGA) of Taraba State. The specific objectives of the study
were to: examine the impact of security challenges on the survivability of businesses in Donga LGA, and assess how these challenges affect the growth and sustainability of small and mediumsized enterprises (SMEs) in the area. The study employed qualitative research design, utilizing semi-structured interviews and focus group discussions with local entrepreneurs, community
leaders, security personnel, and government officials. Social Capital Theory was adopted as the theoretical framework to explore how community relationships, trust, and social networks influence entrepreneurial spirit, resilience and collective responses to insecurity. Findings reveal that security threats in Donga LGA have severely affected business survival through increased operational costs, fear-driven closures, reduced productive hours and customer flow, disrupted supply chains, and lack of investor confidence. Entrepreneurs operate in survival mode, abandoning expansion plans and relying on informal security arrangements. Based on these insights, the study recommends the strengthening of community-based security and early warning systems, the introduction of targeted financial recovery schemes for affected SMEs, and enhanced collaboration between local authorities and development partners. Addressing these security issues is critical for restoring business confidence and promoting sustainable development in Donga and similar conflict-prone regions of Nigeria.