Impact of Public Power Supply on Small and Medium Scale Enterprises in Biase Local Government Area of Cross River State, Nigeria

Abstract

The availability and reliability of public power supply remain critical determinants of the growth and sustainability of Small and Medium Scale Enterprises (SMEs), especially in developing economies like Nigeria. This study investigates the relationship between public electricity supply and the performance of SMEs in Biase Local Government Area of Cross River State. The study targeted all registered SMEs in the area and adopted the Romer’s endogenous growth theory as the underpinning framework. A survey research design was adopted, and employed a 4-point likert scale to collect data from a sample of 400 respondents, determined using the Taro Yamane formula at a 0.01 level of significance. Data were gathered using primary and secondary source and was analyzed using chi-square (X)2 statistical tool to examine the relationship between public power supply and SME performance. The findings revealed that irregular electricity supply significantly raises operational costs due to reliance on generators and other alternatives, thereby reducing profitability and limiting business growth. A strong and statistically significant correlation was found between electricity reliability and key business performance indicators, including productivity, customer retention, and service delivery. The study concludes that stable electricity supply is essential for the sustainable growth of SMEs. It recommends improved investment in rural electricity infrastructure, favorable tariff reduction for SMEs, and promotion of alternative energy sources such as solar power to reduce dependence on the national grid.