Effect of Insecurity on the Performance of Small and Medium Enterprises: Evidence from Selected Enterprises in Zamfara State, Nigeria
Keywords:
Insecurity, Banditry Activities, Enterprises, Kidnapping, SMEs PerformanceAbstract
There are insurgency issues in the northwest part of Nigeria. The insecurity problem in Zamfara state led to the closure of businesses activities. Theaim of the current study is to ascertain whether insecurity affectsthe performance of registered SMEs in Zamfara state. The study used survey method. The entire managers or owners of theregisteredsmall and medium enterprises that are registered in Zamfara State make up the study's population. The population and the sample size are respectively 1,236 and 302. The study employed primary data obtainedthrough questionnaire administered to 302 managers and owners of SMEs.The study incorporatedregression model to analyze data. The findings revealed that kidnapping has a negative significant impact on SMEs' performance. Also, the results showed that banditry activities have a major negative impact on SMEs' performance. The study recommended that the government should reinvest in the military to end banditry and improve the performance of SMEs. Moreover, to help SMEs operate more effectively, the government should concentrate on making sure that banditry activities are reduced, if not totally eradicated
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