THE IMPACT OF INADEQUATE POWER SUPPLY ON SMALL AND MEDIUM SCALE ENTERPRISES: A CASE STUDY OF TAKUM LOCAL GOVERNMENT AREA OF TARABA STATE
Abstract
Power supply is the major driving force for all businesses in today’s competitive world. It is therefore important that an access to stable power supply is essential for the success of any business which in turn leads to consumer satisfaction, high productivity, profitability, employment and overall economic growth. The drive for this study was to find out the impact epileptic power supply is having on small and medium scale enterprises (SMEs) in Takum local government area of Taraba state. Three research questions were formulated and answered by the study while three null hypotheses were formulated and tested at 0.05 level of significance. The study adopted survey research design, more specifically, cross sectional survey was adopted and was carried out in Takum local government area of Taraba. The study used a simple random sampling technique which is a probability sampling method which draws a portion of a population so that each member of the population has an equal chance of being chosen. The study also used 30 structured questionnaires to collect primary data directly from the chosen SMEs. The study identified that epileptic power supply has a negative impact on SMEs making them to spend about 20% - 30% on backup energy. The study also revealed that epileptic power supply does not affect the operational performance of SMEs and that the supply of power to SMEs is not sufficient. Based on these findings, the study recommend that government should take total control of the privatized power sector and that all the states should develop all the various power sources at their disposal.
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