INFRASTRUCTURAL DEVELOPMENT AND SMALL AND MEDIUM ENTERPRISES PERFORMANCE IN OSOGBO METROPOLIS

• Olaide Zakariyahu AJIBOLA

  Author

• Olatunde Misbaudeen OSUOLALE

  Author

This research seeks to evaluate the impact of infrastructural development on SMEs’ performance in Osogbo Local 
Government of Osun State. The study assessed the determinants of Small Medium Enterprise development in Osogbo, 
it also determined the rate at which poor financing and capital formation stall the development and survival of SMEs 
and the impact government policies and intervention programmes has on the performance of SMEs among others. 
The study adopted descriptive research design while employing statistical with econometric techniques to achieve the 
specific objectives. The study employed survey method by distributing Questionnaires to the respondents. 200 
Questionnaires were distributed out of which 160 retrieved and coded with MS Excel 13 and SPSS 20.0. However, the 
result shows fit goodness test for all observations; P-value (Sig) <0.05 thus; sig. (.000) we reject HO. The study 
concludes that inadequate social infrastructures, lack of managerial skills and multiple taxations constitute a major 
challenge in the performance of SMEs. The study also concludes that the top six importance of infrastructural 
development on small and medium scale enterprises includes roads communication network, irrigation, storage 
facilities, market facilities, research and extension institutions, schools and universities which train and turn out a 
variety of skilled agricultural work person on the basis of factor loading. The study recommends Government 
guaranteeing short, medium and long-term loans to SMEs in Osogbo City since they lack the necessary collaterals to 
access such funds from financial institutions. 

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