INNOVATION AND BUSINESS PERFORMANCE: A STUDY OF SELECTED SMALL AND MEDIUM ENTERPRISES IN BIDA METROPOLIS OF NIGER STATE

Abstract

This study examined the effect of innovation on the performance of Small and Medium Enterprises (SMEs) in Bida of Niger State. The method employed in carrying out this study is descriptive survey method which involves collecting data from respondents through questionnaire administration. 355 questionnaires were administered in which 335 were duly filled and returned. Therefore, our sample size is 335. The 335returned questionnaires were used for analysis with the aid of statistical packages for social sciences (SPSS). Results demonstrate that there is a positive but insignificant relationship between product innovation and business performance; also that there is a positive significant relationship between Process innovation and business performance and finally revealed that there isa positive significant relationship between marketing innovation and business performance. In conclusion, innovation is an important factor in business performance. Small and Medium Enterprises (SMEs) in Bida metropolis had embraced it with 96% of the respondent Small and Medium Enterprises (SMEs) having at least one innovation. Research findings indicate that product; process, and marketing and innovation had a positive effect on business performance. Process and marketing innovation had a statistically significant effect on business performance, while product innovation had an insignificant effect. The study therefore recommended that owners/ managers of Small and Medium Enterprises (SMEs) should develop and implement innovations in their firms to improve performance. Small and Medium Enterprises (SMEs) owners/ managers should consider pursuing innovation strategy to improve business performance.