EFFECT OF PUBLIC INFRASTRUCTURAL SUPPORT ON BUSINESS GROWTH: EVIDENCE FROM TECHNOLOGICAL ENTERPRISES IN NIGERIA

Abstract

Technological enterprises are considered as a catalyst for economic development, nevertheless, they often run into the problem of sourcing for infrastructural facilities to enhance their business growth. The main objective of this study is to examine the effect of Public Infrastructural support on business growth: evidence from technological enterprises in Nigeria. The sample comprises startup SME sub-manufacturer in Metal fabrication, Renewable energy (solar), and Electrical/Electronic whose businesses are within six years of graduation. The sample size is 240 respondents. A multistage sampling technique was employed to select the respondent for the study. The instrument used was validated and pilot tested to ascertain the internal consistency using Cronbach Alpha. The reliability coefficient of the questionnaire was 0.734. The data obtained were analyzed using the partial least square (PLS)-a structural equation model (SEM) tool. The study hypothesis which states that there is no significant relationship between infrastructural support and business growth shows that the null hypothesis is rejected. Hence, the alternate hypothesis is accepted. This implies that infrastructure such as transport systems, power, and incubation services have a significant relationship with business growth. The study recommended that public infrastructure support for technological enterprises should be intensified since it has a positive impact on the growth of that enterprise.