Inventory Management and Performance of Small and Medium Enterprises (SMEs) in Akure, Nigeria

Abstract

This study investigates the inventory management and performance of Small and Medium-Scale enterprises (SMEs) in Akure Metropolis, Ondo State, Nigeria. The study's specific objectives are to assess the factors affecting the nature of inventory management adopted by the selected enterprise and to identify the constraints to effective inventory management within the selected Enterprise. The research approach adopted in this study comprises a quantitative and qualitative approach, which served as an inquiry into factors affecting the inventory management techniques in SMEs in Ondo State, Nigeria. The study's target population was all SMEs in Akure, Ondo State, Nigeria. A multi-stage sampling technique was adopted for the study. In the first stage, Akure was purposively selected. This is because of the concentration of the SMEs in Akure, which is the Capital City of Ondo State. In the second stage, a purposive sampling technique was equally used to select registered SMEs under the Small and Medium Scale Enterprise Development Agency of Nigeria (SMEDAN), Akure chapter, and in the last stage of the sampling procedure, 40 Enterprises each were randomly selected from three sectors (Agricultural, Education, and Drug and pharmaceuticals), totaling 120 altogether. Quantitative data collection techniques were used for the study, which measured the relationship between the variables in numeric terms, emphasizing the statistical explanation of the data collected. Descriptive statistics include tables, Likert scales, frequency, simple percentage, and charts, while the inferential statistics involved the use of ANOVA and regression analysis to determine the relationship between the variables considered in the study.  The findings proved that there is better inventory control planning. Hence, the investigated SMEs still need to draft a comprehensive yearly plan for inventory control. Most importantly, the comprehensive plans need to be reviewed to see if they help in achieving the goals. The study also recommends that SMEs should review their stock on hand periodically.