June 2025 Edition

BUSINESS STRATEGY AND SMALL AND MEDIUM SCALE ENTERPRISES PERFORMANCE IN KANO STATE

Yusuff Nurudeen, Babangida Shehu, Ahmadu Abubakar

Abstract

This study investigates the effect of business strategies on the performance of small and medium-scale enterprises (SMEs) in Kano State, using a cross-sectional survey research design. Data were collected from a sample of 397 owners/managers of registered SMEs, drawn from a population of 21,615 enterprises. A structured questionnaire was employed as the primary data collection instrument, focusing on business strategies, and performance metrics. The study utilizes multiple regression technique to assess the impact of four independent variables (market penetration, product development, market development, and diversification) on the dependent variable of SMEs performance. The findings reveal that market penetration, market development, and diversification positively and significantly influence SMEs performance, while product development exhibited a significant negative effect. The study concludes that while product development can strain resources and negatively affect performance, effective market penetration, development, and diversification strategies can enhance SME performance. Based on these findings, it is recommended that SMEs develop tailored marketing campaigns, align product development with market demands through comprehensive research, prioritize market development initiatives, and implement strategic diversification plans to improve resilience and overall performance.

Keywords

Business strategies, Performance, Small and Medium Enterprises (SMEs), Market penetration, Diversification

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