Examining the Effect of Energy Choices on the Market Performance of Small and Medium-Scale Enterprises in Rivers State

Abstract

This study examined the influence of energy choices on the market performance of Small and Medium-Scale Enterprises (SMEs) in Rivers State. Market performance indicators investigated were profitability and sales growth. A population of 2,449 SMEs was used as the study population, from which 400 respondents were selected using Cochran’s sampling formula. The study employed a survey research design, while data were gathered using a structured self-designed questionnaire on a four-point Likert rating scale. Mean and standard deviation were used to analyse the research questions, while multiple regression, executed using SPSS (v.26), was used to test the hypotheses. The regression output revealed that fossil fuel Generators, Solar energy choices, and energy cost had a positive and statistically significant effect on profitability and sales growth, while Grid power, on the other hand, had a positive but insignificant relationship with the performance measures under investigation. The study concludes that energy choices materially influence the market performance of SMEs in Rivers State, especially in terms of profitability and sales growth. The study therefore recommends, among others, that the Rivers State Ministry of Power should prioritize grid expansion and modernization to reduce incessant power failures and improve energy stability, while the Rivers State Government should incentivize solar power adoption to enhance operational efficiency of SMEs in the state.