Ease of Doing Business on Small and Medium Scale Enterprises (SMES) in Port Harcourt Metropolis

Abstract

This study examined ease of doing business on small and medium scale enterprises (SMEs) in Port Harcourt Metropolis. The study adopted Institutional theory and Resource-Based View (RBV) theory. The population of the study consisted of 365 registered SMEs in Port Harcourt Metropolis. Applying Taro Yamane formula, the sample size consisted 191 managers of SMEs in Port Harcourt while purposive sampling technique was utilised to select the sample. Utilising structured questionnaire as data gathering instrument, raw (primary) data were collected for this research. Descriptive statistical techniques i.e., frequencies, simple percentages and weighted mean scores were applied to analyse the demographic data of the responding persons and other questionnaire items while regression technique is utilised to test the hypotheses. The research established that access to finance, regulatory environment and infrastructure are noteworthy contributors to spurring SMEs performance in Port Harcourt Metropolis. On the other hand, taxation had negatively considerable effect on SMEs performance. It is therefore concluded from the empirical outcomes that congenial doing business conditions are critical for driving and enhancing SMEs performance. Thus, recommended among others are that government should streamline ex-ant regulatory procedures and reduce bureaucratic red tape that hinder SMEs’ operations. This should include simplifying business registration processes, reducing the time and cost associated with obtaining necessary licenses and permits, and ensuring that regulatory actions are clear and transparent.