The Impact of Insurgency and Porous Border on the Performance Micro, Small and Medium Enterprises in Adamawa North Senatorial Zone

Abstract

This study was conducted to examine the effect of insurgency and porous border on the performance of MSMEs in Adamawa north senatorial district. The study adopts cross-sectional survey research design based on the population of the study is 3075 registered MSMEs in Adamawa north senatorial district. The sample size of 354 was determined using Taro Yamane formula where convenient sampling technique was employed for selecting the participants. The data for the study was collected using structured self-administered questionnaire which was analyzed using Structural Equation Modelling with SmartPLS software. The study found that both insurgency and porous border have significant negative effect on the performance of SMEs in Adamawa state of Nigeria. Based on the finding, it is recommended that MSMEs in northern Adamawa state should develop and implement safety protocols for employees including evacuation plans, secure communication systems and regular safety drills, which are paramount during emergency. It is further recommended that the enterprises should comply with all relevant regulations and trade agreements governing cross-border trades applicable in Nigeria which includes complying with import and export regulation and local business laws applicable in neighboring countries. Also, government should support the MSMEs that need to relocate to other parts of the state due to intense insurgent situation in some other parts through aids for setting up in new location, access to new markets or temporary business premises.