EFFECT OF SKILLS DEVELOPMENT ON THE OPERATIONAL EFFICIENCY OF SMALL AND MEDIUM ENTERPRISES IN KEBBI STATE, NIGERIA
DOI:
https://doi.org/10.61421/IJSSMER.2024.4101Keywords:
Skills Development, Operational Efficiency, Entrepreneurship, Entrepreneurship Development ProgrammesAbstract
This study examines the effect of skills development on the operational efficiency of small and medium enterprises (SMEs) in Kebbi State. The study population consisted of 820 registered SMEs from which a sample of 269 SMEs was determine using taro Yamane (1967) formula. Primary data was collected through structured questionnaires designed to gather quantitative data from SMEs owners/managers. The data was analysed using descriptive statistics (mean, frequency, and percentage) to summarise the data and inferential statistics (multiple regression analysis). The study findings revealed that Skills Development (B = 0.006, p = .920) was not statistically significant, suggesting that simply improving skills may not directly enhance SME operational efficiency; other important factors like technology adoption (B = 0.566, p < .001), awareness and motivation (P = .001), and access to finance (P = .001) also contribute significantly. The study recommends that Strengthening Technology Infrastructure and adoption will help SMEs automate, scale up their production, and effectively compete. Stakeholders (the Federal and State Government Anciencies as well as NGOs) should offer more resolute support for digital tools and innovative platforms. In conclusion, the rejection of the null hypothesis, which states that skills development has no significant effect on operational efficiency at the 5% significance level, confirms the relevance of entrepreneurship development programmes in the operational efficiency of small and medium enterprises. Technology is the most significant factor, though the effectiveness of entrepreneurship development programmes varies depending on their components.
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