EFFECT OF INSECURITY ON SMALL AND MEDIUM ENTERPRISES (SMEs) DEVELOPMENT IN LERE LOCAL GOVERNMENT AREA, KADUNA STATE
Nuhu Gideon Sammani
Volume 4 Issue 1
Abstract
This study investigates the impact of insecurity, particularly kidnapping and banditry, on the development of small and medium enterprises (SMEs) in Lere Local Government Area (LGA), Kaduna State, Nigeria. A survey research design was employed, with a sample size of 317 SMEs derived from a population of 1,292 registered enterprises. Data was collected using a five-point Likert scale questionnaire and analyzed using Ordinary Least Squares (OLS) regression. The findings revealed that while kidnapping had a significant positive effect on SME development, suggesting short-term adaptive resilience among businesses, banditry exerted a strong negative influence, leading to reduced business growth and operational challenges. Reliability tests confirmed the validity of the research instruments, with Cronbach’s alpha values above 0.7 for all variables. The study recommended that recommended that stronger security measures be implemented to combat the negative effects of banditry. Additionally, support programs aimed at helping businesses build resilience in insecurity-prone areas are essential. These programs could include training in risk management and business continuity, as well as financial aid to support recovery and long-term growth. These findings are vital for policymakers aiming to create a more secure and supportive environment for SME development in Lere LGA. Keywords: Insecurity, Banditry, Kidnapping, SMEs, Development
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