The Impact of Sustainability Practices on Performance of Small and Medium Enterprises

This study examines the impact of sustainability practices on the performance of small and medium-scale enterprises (SMEs) in Benin City, Edo State. Using a sample size of 198 respondents, the study employed a survey research design and collected data through structured questionnaires. The data were analyzed using descriptive statistics (frequency, mean, percentage) and inferential statistics (one-sample t-test and regression analysis). The findings reveal that SMEs in Benin City have significantly adopted sustainability practices (mean = 3.69, p < 0.05), with social sustainability having the strongest positive impact on performance (B = 0.376, p = 0.001), followed by environmental sustainability (B = 0.269, p = 0.016). However, economic sustainability was not found to have a significant effect on SME performance (B = 0.020, p = 0.842). Additionally, SMEs face significant challenges in adopting sustainability practices (mean = 3.60, p = 0.000), including financial constraints, limited knowledge, and regulatory barriers. Based on these findings, the study recommends enhancing financial support, increasing awareness of environmental sustainability, strengthening social sustainability initiatives, addressing key adoption challenges, and integrating sustainability into long-term policy frameworks. These measures will facilitate the effective adoption of sustainability practices, improving SME competitiveness and long-term business success in Benin City.