Market Opportunity Recognition and Business Performance of Food and Beverage Manufacturing SMES in Rivers State, Nigeria

Abstract

This paper explored market opportunity recognition and business performanceof food and beverage manufacturing SMEs in Rivers State. The study adopted the correlational research design. The population of this study consisted of 1,286registered food and beverage manufacturing SMEs in Rivers State. A sample size of 305 entrepreneurs was used for the study. The sample size was determined using the Taro Yamen’s formula while the simple random sampling technique was used to select the sample from the study population. A structured questionnaire was used as the instrument for data collection. The instrument was validated through face and content analysis while its reliability was determined using the Cronbach Alpha method. The data collected were analyzed statistically using the Spearman Rank Order Correlation Coefficient (rho). The bivariate analysis was performed with the aid of SPSS software program version 23.0. The findings revealed that active search has a strong positive and significant relationship with sales growth, market share growth and profitability growth of food and beverage manufacturing SMEs in Rivers State. The study also revealed that personal alertness has a significant relationship with sales growth, market share growth and profitability growth of food and beverage manufacturing SMEs in Rivers State. Prior knowledge was reported to have a strong positive and significant relationship with sales growth, market share growth and profitability growth of food and beverage manufacturing SMEs in Rivers State. Since all the dimensions of market opportunity recognition (active search, personal alertness and prior knowledge) has a significant relationship with the measures of business performance, it is therefore concluded that market opportunity recognition significantly enhance business performance of food and beverage manufacturing SMEs in Rivers State. The study therefore recommended that entrepreneurs in the food and beverage manufacturing sector in Rivers State should always be alert, use their prior knowledge and engage in active search for market opportunities as they would enable them identify market opportunities and exploit them to improve their business performance and grow their businesses.