EFFECT OF SOCIETAL INSECURITY ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMES) IN OGBADIBO LOCAL GOVERNMENT AREA, BENUE STATE, NIGERIA

This study examined the effect of societal insecurity on the performance of Small and Medium Enterprises (SMEs) in Ogbadibo Local Government Area (LGA) of Benue State, Nigeria. The study specifically assessed the extent to which societal insecurity affects the operational efficiency of SMEs, evaluated the impact of insecurity on revenue generation and profitability, identified coping mechanisms adopted by SMEs, and proffered policy recommendations to enhance the resilience of SMEs in insecure environments. A descriptive survey research design was employed, and data were collected from 330 SME operators selected through stratified and purposive sampling techniques. The research instrument was a structured questionnaire, and data analysis was conducted using descriptive statistics such as frequency counts, percentages, mean, and standard deviation. The findings revealed that societal insecurity significantly hampers the operational efficiency of SMEs. Specifically, the reduction of operational hours due to fear of attacks recorded the highest mean score of 3.08, indicating strong agreement among respondents. Business closures due to insecurity had a mean of 2.98, while customer avoidance of business areas perceived as insecure was also high with a mean of 3.00. In terms of revenue and profitability, property and inventory loss due to attacks recorded the highest mean of 3.07, and the overall reduction in profitability had a mean of 3.05. Additionally, increased cost of operations and customer loss due to insecurity were prevalent challenges, with mean scores of 2.96 and 2.95 respectively. Regarding coping mechanisms, financing security strategies through personal savings was the most adopted strategy with a mean of 2.83, followed by adjusting business hours (mean = 2.78) and relocating to safer areas (mean = 2.72). However, government support for SMEs to mitigate insecurity was minimal, reflected by a low mean score of 2.09. The study concluded that societal insecurity poses substantial threats to the survival and growth of SMEs in Ogbadibo LGA. It recommends that the government should provide financial incentives, enhance community policing, and support SMEs with tailored loan schemes for security enhancement. Additionally, SMEs are encouraged to adopt digital platforms to mitigate physical exposure to insecurity threats. The study identified limitations including its focus on a single LGA and reliance on self-reported data, suggesting the need for comparative and longitudinal studies in future research.