Impact of Oil Price Shock on Small Scale Enterprise Performances in Yobe State

This study examined the impact of oil price shocks on small-scale enterprise performance in Yobe State, Nigeria. The persistent fluctuations in global oil prices have continued to exert significant effects on economic activities, particularly on small-scale enterprises that depend heavily on energy and transportation for their operations. The study sought to determine the extent to which oil price shocks influence enterprise performance through rising inflation and transportation costs. A descriptive survey research design was adopted for the study. The target population comprised owners and managers of small-scale enterprises operating in Yobe State. A sample size of 201 respondents was selected using the Taro Yamane formula and stratified sampling technique. Primary data were collected through the administration of structured questionnaires. The data obtained were analyzed using descriptive statistics, correlation analysis, and multiple regression analysis with the aid of the Statistical Package for Social Sciences (SPSS). The findings revealed that oil price shocks have a significant negative effect on small-scale enterprise performance in Yobe State. The correlation analysis indicated a strong negative relationship between oil price shocks and enterprise performance (r = -0.712, p < 0.05). The regression results showed that oil price shocks (β = -0.487, p < 0.05), inflation rate (β = -0.318, p < 0.05), and transportation cost (β = -0.241, p < 0.05) significantly and negatively affect the performance of small-scale enterprises. The coefficient of determination (R² = 0.551) indicated that 55.1% of the variation in enterprise performance was explained by the independent variables included in the model. Furthermore, the ANOVA result (F = 127.481, p = 0.000) confirmed the overall significance and fitness of the model. The study concluded that oil price shocks constitute a major challenge to the growth and sustainability of small-scale enterprises in Yobe State by increasing operational costs and reducing business profitability. The study recommends that government should implement policies aimed at stabilizing fuel prices, improve transportation infrastructure, provide affordable financing for small-scale enterprises, and support entrepreneurs through capacity-building programmes to enhance their resilience against oil price volatility

Oil Price Shock, Small-Scale Enterprises, Enterprise Performance, Inflation Rate, Transportation Cost, Yobe State

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