Market Growth Strategies and Performance of Small and Medium Scale Enterprises in Benue State, Nigeria

In all economies Small and Medium Scale Enterprises (SMEs) constitute the vast majority of business establishments thereby contributing to employment generation, poverty reduction, Gross Domestic Product (GDP) and household income. Stiff competition requires SMEs to adopt different strategies to improve performance. This study examines the effect of market growth strategies on the performance of small and medium scale enterprises in Benue State, Nigeria. The study specifically examined the effect of product development strategy, market penetration strategy and quality customer service strategy on the performance of small and medium scale enterprises in Benue State, Nigeria. The study adopted a survey research design and questionnaire was used as the instrument for data collection. The population of the study includes 281 SMEs in Makurdi metropolis selected across different sectors including Retail/Wholesale, Services, Agri-business and Manufacturing. Mean and standard deviation were used for data presentation and analysis while regression analysis was used for test of hypotheses. Findings of the study indicated that product development strategy and market penetration strategy have significant effect on the performance of small and medium scale enterprises in Benue State, Nigeria. The study also revealed that quality customer service strategy has significant effect on the performance of small and medium scale enterprises in Benue State, Nigeria. The study recommended amongst others that owners of SMEs in Benue State should always use strategies that will align market needs to be able to attract more customers and face competitors in the market.