AN ASSESSMENT OF THE EFFECT OF DEMOGRAPHIC FACTORS ON SMEs PERFORMANCE IN BENUE STATE

Abstract

AN ASSESSMThis study examined the effect of demographic factors on SMEs performance in Benue state. Using data drawn from 397 registered SMEs in Benue state, the study specifically examined the combined effects of demographic factors (age, gender, education, and experience) on each of volume of output, income generation, years of existence, and employment generation. The questionnaire was the preferred method of data collection while structural equation modeling (SEM) was used for hypotheses testing. Findings indicate a significant effect of demographic factors on output volume and employment generation among SMEs while the effects of demographic variables on income generation and years of existence were non-significant. The study therefore concluded that while demographic factors affect SMEs performance, this may depend on the specific measure of SMEs performance adopted. The study recommended among others that an adequate policy framework should be developed to guide SMEs in developing strategies for competitive advantage by understanding both the individual and group characteristics such as age, gender, education and experience of those that make decisions in the organisation.