Cost of Power Supply and Growth of Small and Medium Enterprises (smes) in Awka South, Anambra State, Nigeria

ABSTRACTThis study investigated the effect of power supply on the performance of SMEs in Awka South Local Government Area, Anambra State, Nigeria. The research assessed the effect of power supply related issues on productivity, profitability, and cost competitiveness among businesses in the area. Data was collected through questionnaires distributed to 55 registered SMEs across various sectors, including retail, manufacturing, and services, achieving a 100% response rate. Data was presented using tables and figures, and analyzed using Chi-square statistical tool. The analysis revealed that frequent power outages, high electricity tariffs, and the cost of alternative power sources significantly affect business operations. The study utilized regression analysis to test hypotheses related to the effect of power supply on the three performance objectives—productivity, profitability, and cost competitiveness. The results showed that power supply related challenges negatively affect productivity by causing delays and disruptions, reduce profitability through increased operating costs, and limit cost competitiveness by raising production costs. It was concluded that stable and affordable power supply is critical for improving the overall performance of SMEs in Awka South. The study recommended that policymakers address SME power supply issues by improving electricity infrastructure, promoting renewable energy and making electricity more affordable.