Effect of Inflation on Operations of Small and Medium Scale Enterprises in Enugu State

• Post by: ejem
• June 4, 2023
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ABSTRACT

The study examined the effect of inflation on operations of small and medium scale enterprises in Enugu state. The study adopted built-in inflation, cost-push inflation and demand-pull inflation as the independent variables while product development, production and sales serve as dependent variables. The study utilized the descriptive survey research design approach. The study employed primary source of data. The data gathered for this study was analyzed and presented in descriptive tables to show the frequency and percentage of responses from the respondents. Linear regression analysis was utilized to test the hypotheses of the study. The statistical tool used for the analysis is the statistical package for social sciences (SPSS) version 26. The results of the study show that built-in inflation does not have significant effect on the product development with (t = 8.016) and p = .200 > 0.05)., cost-push inflation does have significant effect on the production with (t = 14.471 and p = .100 > 0.05). and that demand-pull inflation does have significant effect on the sales with (t = 33.667 and p = .000 < 0.05) of small and medium scale enterprises in Enugu state. We concluded that inflation has significance effect on operations of small and medium scale enterprises in Enugu state. We recommended that those in authority should endeavor to developed policy that will help to bring down high-rate inflation it has an effect on business operation in Nigeria.

Keywords: Demand-Pull Inflation; Cost-Push Inflation; Built-in Inflation; Enugu

BY Eze, F. O., Okechukwu, E. U. & Eneh, B. I.

FULL PDF   |   DOI: 10.5281/zenodo.8025779