FACTORS AFFECTING THE PERFORMANCE OF MSMEs IN TEXTILE MARKET IN EDO STATE

ABSTRACT

This study examine the factors affecting the performance of MSMEs in textile market in Benin city, the objective are to determine how the availability of operating capital affect the performance of MSMEs in the textile market in Benin city; to ascertain if multiple levies affects the performance of MSMEs in the textile market in Benin city;to ascertain if entrepreneurial skills affects the performance of MSMEs in the textile market in Benin city; to To determine how cluster location affects the performance of MSMEs in the textile market in Benin city, four research question were raised to guide the study. This research population of study is drawn from the major textile markets in Benin city. A sample size of 100 MSMEs owners were selected randomly from the major textile markets in Benin City. Data was collected through questionnaire, and were analyzed using simple percentage and frequency count. It is concluded that several factors significantly impact the performance of Micro, Small, and Medium Enterprises (MSMEs) operating in the textile market in Benin City. Firstly, addressing customer needs effectively has proven to be a key driver of increased profitability for businesses in this sector. Furthermore, the burden of dealing with diverse levy assessments negatively affects operational efficiency, leading to financial strain and reduced customer patronage due to the imposition of multiple levies. It is recommended that federal government should earmark a substantial amount to bail out the SMEs in the textile sub-sector and also to encourage financial institutions to finance SMEs in the textile sub-sector without any restriction,and federal government should ban the importation of textiles to the country,as it will ultimately drive many young graduates into the sector. It is also recommend that woven fabric production must be enlisted among vocational studies in all the tertiary institutions in Nigeria. And that federal government should provide adequate infrastructural facilities that will make the sector to wax stronger and compete globally.