MOTIVATION AND MICRO, SMALL AND MEDIUM SCALE ENTERPRISES (MSME) PERFORMANCE IN AKUNGBA AKOKO, ONDO STATE

This study examined the impact of employee motivation on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Akungba-Akoko, Ondo State, Nigeria, between 2018 and 2023. A descriptive survey research design was employed, and primary data were collected through structured questionnaires administered to 116 randomly selected MSME owners and employees, while data analysis was carried out using descriptive statistics and multiple regression with the aid of E-Views 13 to evaluate the relationship between motivation and performance. The results revealed that motivational strategies did not have a statistically significant direct impact on MSME performance (p = 0.5150). However, MSME performance was found to significantly improve employee motivation and productivity (p = 0.0039), while challenges faced in implementing motivational strategies had a significant effect on performance (p = 0.0145). These findings highlight that, in semi-urban contexts such as Akungba-Akoko, employee productivity and motivation are largely shaped by the success of the enterprise itself and its ability to manage challenges, rather than by traditional motivation schemes alone. The hypotheses tested confirmed these findings. The null hypothesis stating no significant relationship between motivational strategies and MSME performance was accepted, while the null hypotheses regarding the relationship between MSME performance and employee motivation, and between challenges and performance, were rejected. The study concludes that while employee motivation remains important, it cannot independently enhance MSME performance without broader structural and managerial improvements. It is recommended that MSME owners and managers focus on holistic development strategies such as financial management, business training, and operational efficiency