DETERMINANTS OF MICRO, SMALL AND MEDIUM ENTERPRISES PERFORMANCE IN SOUTHERN SENATORIAL DISTRICT OF CROSS RIVER STATE, NIGERIA

Abstract

This study examines the determinants of micro, small and medium enterprises performance in Southern Senatorial District of Cross River State. The study adopted the survey research design. The sample size of the study was 400 micro, small and medium enterprises in Southern Senatorial District of Cross River State. The instrument of data collection was the questionnaire and the data collected was analyzed using the logistic regression technique. From the Logit regression result, it was observed that financial factors have a negative and insignificant impact on the performance of micro, small and medium enterprises in Southern Senatorial District of Cross River State. It was observed also that human capital factors have a positive and significant impact on the performance of micro, small and medium enterprises in Southern Senatorial District of Cross River State. Social and cultural factors have a positive and significant impact on the performance of micro, small and medium enterprises in Southern Senatorial District of Cross River State. Based on the findings, the study recommended that funds should be made easily accessible to MSMEs by microfinance banks so as to explore untapped business investment potentials of MSMEs to the utmost benefit of the generality of the economy. However, government should prioritize enabling business environment like good infrastructures such as good road network, stable power supply, etc in the country so as to enhance MSMEs performance. Finally, Micro small and medium enterprises should be encouraged to embrace the new digital infrastructures such as e- commerce so as to enhance their optimal performance.