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Entrepreneur Department
📄 Pages: 65 🧠 Words: 10799 📚 Chapters: 5 🗂️️ For: PROJECT
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Access to electricity and its accompanied high tariffs poses a greater challenge to SMEs growth and performance in lower income countries like Nigeria, as compared with those in higher income countries. This assertion is confirmed in a research by Scott et al (2014) which reveals that, the proportion of SMEs in high-income countries citing electricity as a major constraint is half of their counterparts in the Sub-Saharan African and Asia countries. Cost and time spent on acquiring electricity were also higher in the Less Developed Countries compared with that of High-Income Countries. However, this study is examining the effect of electricity on the performance of SMEs in Nigeria.
The effect of electricity power outage on SMEs in Nigeria posited that, the current electricity crises in the country were costing the SMEs over US $686.4 million of annual sales. The SMEs continued to record a huge loss day by day as a result of poor electricity supply. These have been partly blamed on market and state failures, which have led to the poor electricity supply.
In the interim, a lot has equally been said with regards to the appalling state of Nigeria's epileptic power sector according to Akuru and Okoro (2009). Energy consumers do not get electricity supplied to them because the local utility companies do not get power transmitted to them from the electric grid. The managers of electric transmission are quick to accuse the generating stations of insufficient generating MW capacity. And as if trading of blame has become routine with each of these sectors, the generating stations either claim they do not get enough gas to power their plants or they turn around and claim that the transmission companies themselves cannot boast of a strong transmission backbone to transmit what is being generated.
1.7 SCOPE/LIMITATIONS OF THE STUDY
This study will cover the effect of electricity on the performance of SMEs in Nigeria. It will also cover the effectiveness of the electricity generating and distributing companies in Nigeria.
LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work
REFERENCES
Adenikinju, A.F (2003). Electric infrastructure failures in Nigeria: a survey-based analysis on the costs and adjustment responses, in Energy Policy, Vol. 31, Issue 14. November 2003, pp. 1519-1530.
Akuru, U.B. and Okoro, O.I. (2009). Sustainable application of solar energy as SMEs in a developing nation, African Journal of Physics Vol. 2, pp. 184209, ISSN: 1948-0229 CD ROM: 1948-0245 ONLINE: 1948-0237
Anyanwu, C.M. (2001). Financing and promoting small-scale industries: concepts, issues and prospects, Being the Publication of the launching ceremony of the Small and Medium Industries Equity Investment Scheme at Nicon Hilton Hotel, Abuja on 21st August, 2001. Volume 25, No. 3; July/September 2001.
Essien, O.E, (2001). The role of Development Finance Institutions (DFIs) in financing of Small Scale Industries (SSIs), Being the Publication of the launching ceremony of the Small and Medium Industries Equity Investment Scheme at Nicon Hilton Hotel, Abuja on 21st August, 2001. Volume 25, No. 3; July/September 2001.
Oboh, G.A.T. (2002), Bank Participation in the Promotion of Small and Medium-Scale Enterprises, Being a paper presented at the 6th Fellows and Associates Forum of CIBN on 13th April, 2002.
Scott, A., Darko, E., Lemma, A. and Juan-Pablo, R. (2014) How Does Electricity Insecurity Affect Businesses in Low and Middle Income Countries? Shaping Policy for Development
📄 Pages: 65 🧠 Words: 10799 📚 Chapters: 5 🗂️️ For: PROJECT
👁️🗨️️️ Views: 667
