Effect of Urbanization on the Performance SMES in Anambra State Nigeria

Abstract

This work evaluated the effect of urbanization on the performance SMEs in Anambra State Nigeria. Specifically the study investigated the effect of infrastructural services on performance of SMEs, social amenities on the performance of SMEs and the effect of technological development and performance of SMEs in Anambra State, Nigeria. Relevant conceptual, theoretical and empirical literatures were reviewed. The study was anchored on Self-Generated or Endogenous Urbanization Theory. This study adopted survey design. Infrastructural services, social amenities and technological development were employed as the independent variables while performance of SMEs was employed as the dependent variable. The population is unknown, as such the sample size of the study was determined with the aid of Topman’s non-parametric sample size determination formula, applied when the population frame is unknown. A sample size of 368 respondents. The data generated were analyzed using descriptive statistics, correlation analysis and multiple regression analysis. The study found that infrastructural facilities has a significant effect on the performance of SMEs; Social amenities has a significant effect on the performance and technological development has a significant effect on the performance of SMEs in Anambra State, Nigeria. The study concludes that urbanization had a significant effect on the performance of SMEs in Anambra State, Nigeria. The study recommended that government should provide availability of Infrastructural facilities in rural areas will decrease the rural – urban migration of the people that will increase on the performance of SMEs. Government in collaboration with private sector could make and implement programme for rural upliftement such as social amenities programmes, housing loans, electricity, water supply etc. So that they will not have interest to migrate to urban areas. Small business owners should stay current on technological development and try to influence government decision-making and policy on urbanization.