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Effect of Insecurity on Micro, Small and Medium
Enterprises (MSMEs) Development in Benin-City, Edo State
Abstract:
Despite the concerted efforts by different stakeholders to abate security challenges in Nigeria the rising wave still remain obstinate and the adverse effects on MSMEs operations has become worrisome. It becomes imperative therefore to analyse the effects on MSMEs development considering the relevance to economic growth and development to the Nigeria economy. The study therefore adopted the descriptive survey research design and the population comprised 116 MSMEs operators who registered with the Ministry of Commerce and Industries in Benin-City, Edo State. Four research questions guided the explorative study. A 48-item structured questionnaire was used as instrument for data collection. The instrument was validated by four experts who are professionals from Entrepreneurship, Business Administration, Law, Measurement and Evaluation. It was tested for reliability using the Cronbach Apha and a reliability value of 0.88 was realized. The data collected were analysed using descriptive statistics of mean and standard deviation to answer the research questions and determine the homogeneity of respondents’ opinions. The findings revealed among others that although there is low rate of insecurity to MSMEs operations in Benin-City but the operators reduced their productive hours by closing early for fear of being attack by hoodlum s and criminals. Also all the stakeholders are working round the clock to provide good security measures but police response to distress calls most cases is not encouraging. They however agreed that insecurity can have adverse consequences on business by discouraging business operators from expanding their businesses or make new investment and also scare away potential local and foreign investors. It was recommended among other that stakeholders should intensify efforts to bridge the gap in the security lapses that cause fear, anxiety and portend misfortune to business operators. Furthermore, as a matter of urgency government should ensure that all security service providers are duly registered and should formulate policies that will nip the problem in the bud to enable MSMEs thrive.
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