ABSTRACT

This project assessed the effect of power supply on the performance of small and medium scale industries in Edo State. The objectives of this study weres to examine the effect of power supply on the output and on the return on investments of SMEs and also to ascertain the effect of power on sales volume of SMEs. The population of the study consisted of all the nine hundred and twenty nine (929) SMEs in Edo State. The survey method was adopted as the research design. The study adopted systematic and simple random sampling techniques to draw a sample of two hundred and eighty (280) from the population. The questionnaires were administered physically to the respondents. Data collected was analysed by descriptive analysis, cross tabulation and regression analysis. These were implemented using version 20 of the SPSS software package. The study found that power supply has a positive effect on the output of SMEs. It also has a significant impact on return on investment (ROI). Similarly, power has an important effect on sales volume. The study then concludes that power supply has a positive impact on the performance of SMES. It further reveals that the performance of SMEs in Edo State in terms of output and profitability is fundamentally determined by the quantity of electricity supplied. It is therefore recommended that that regulatory bodies responsible for the energy sector should set some proper standards for the generation, distribution and costing of electric power. In addition, reliability of the electricity supply should be improved on, maintained, and monitored.