Factor Analysis of Small and Medium Enterprises’ Challenges and Its Implications on Poverty and Unemployment in Dekina

Abstract

This study focused on factor analysis of SMEs’ challenges and its implications on poverty and unemployment in Dekina. The study investigated the prime factor influencing SMEs’ entrepreneurial activities, and its relationship with poverty and unemployment in Dekina. In regard of this purpose, quantitative survey research design was used to facilitate good deduction on the basis of analysis of data gathered from the respondents. The study was conducted on 25 SMEs with the total universe of 121 in Dekina, Nigeria. The study adopted structured questionnaires for the survey research. Cronbach’s alpha was used for the test of reliability of instrument and pilot test technique to determine its validity. The study determined its sample size of 93 using Taro Yamane sampling techniques, and adopted multi-stage sampling techniques, and simple random sampling to choose the required samples for the universe. This study analyzed data and tested hypotheses using regression model and correlation analysis. The study found that finance is the prime factor influencing SMEs’ entrepreneurial activities in Dekina, and that the relationship of SMEs’ entrepreneurial activities with poverty and unemployment is negative. Furthermore, findings show that a positive correlation exists between unemployment and poverty in Dekina. The study concluded that where there is distinctively increasing effort by the government towards financing small and medium enterprises, strategic issues like poverty and unemployment may be easily solved. The study therefore recommends that government should encourage increasing level of SMEs entrepreneurial activities through availability of adequate finance in Dekina.