IMPACT OF INFRASTRUCTURAL DEVELOPMENT ON SALES GROWTH AND PROFITABILITY: INSIGHT FROM SMES IN SUB-SAHARAN AFRICA

This paper examines the impact of infrastructural development on business performance, focusing on the impact of socio-economic factors on sales growth and profit performance among small and medium-scale enterprises (SMEs). Stratified random sampling was used to select a sample of 500 respondents from a population of 3,736 registered SMEs registered with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). The findings reveal that infrastructure (r= 0.189, P <0.01) positively influences the profit performance of SMEs. More so, there is a significant relationship between infrastructure and the sales growth of SMEs (r= 0.197, P <0.01). The study concludes that enhancing the efficiency and performance of SMEs in Nigeria requires an environment that provides adequate infrastructural facilities. Therefore, the government should adopt and implement enterprise-friendly policies that improve entrepreneurship development, recognizing the important role of SMEs in the nation's economic growth.