SUSTAINABLE PRACTICES AND BUSINESS PERFORMANCE OF SMALL MEDIUM ENTERPRISES (SMES) IN ABA, ABIA STATE, NIGERIA
Abstract
This study examines the relationship between sustainable practices and business performance of Small and Medium Enterprises (SMEs) in Aba, Abia State, Nigeria. The study integrates environmental, social, and economic sustainability dimensions and evaluates their influence on profitability, customer satisfaction, and competitive advantage. A survey research design was adopted, using structured questionnaires administered to SME owners/managers. The study population consisted of 904,721 small and medium enterprises using leather cluster (254,491) and garment cluster (650,230) respectively as the two major industrial clusters. A sample size of 400 was drawn from the population using Taro Yamane statistical formula. Data were analyzed using regression and correlation techniques. Findings reveal that sustainability practices such as environmental (waste reduction, energy efficiency), social (ethical business conduct, community engagement) and economic (cost efficiency, long-term profit) have significant positive impact on SME performance in terms of profitability, customer satisfaction and competitive advantage respectively. Empirical evidence shows that sustainability enhances brand reputation, customer loyalty, and operational efficiency. However, challenges such as financial constraints, low awareness, and weak regulatory support hinder adoption. The study concludes that sustainability is a strategic tool for improving SME performance and recommends increased policy support, access to green finance, and sustainability awareness programs.
Keywords: Sustainable Practices, Business Performance, Small Medium Enterprises (SMES), Aba, Abia State, Nigeria
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