Infrastructural development and small and medium enterprises performance in Osogbo metropolis

Abstract

This research seeks to evaluate the impact of infrastructural development on SMEs’ performance in Osogbo Local Government of Osun State. The study assessed the determinants of Small Medium Enterprise development in Osogbo, it also determined the rate at which poor financing and capital formation stall the development and survival of SMEs and the impact government policies and intervention programmes has on the performance of SMEs among others. The study adopted descriptive research design while employing statistical with econometric techniques to achieve the specific objectives. The study employed survey method by distributing Questionnaires to the respondents. 200 Questionnaires were distributed out of which 160 retrieved and coded with MS Excel 13 and SPSS 20.0. However, the result shows fit goodness test for all observations; P-value (Sig) < 0.05 thus; sig. (.000) we reject HO. The study concludes that inadequate social infrastructures, lack of managerial skills and multiple taxations constitute a major challenge in the performance of SMEs. The study also concludes that the top six importance of infrastructural development on small and medium scale enterprises includes roads communication network, irrigation, storage facilities, market facilities, research and extension institutions, schools and universities which train and turn out a variety of skilled agricultural work person on the basis of factor loading. The study recommends Government guaranteeing short, medium and long-term loans to SMEs in Osogbo City since they lack the necessary collaterals to access such funds from financial institutions.