International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue I, January 2021 | ISSN 2454–6186

Road Network and Security: Challenges of Small and Medium-Size Enterprises in Port Harcourt

Onwo, Isioma Nwabunor¹, Sylvester Favor Udeorah, Ph.D²
1Institute of International Trade and Development (IITD), University of Port Harcourt. Port Harcourt, Nigeria
2Department of Economics, Faculty of Social Sciences. University of Port Harcourt . Port Harcourt, Nigeria

Abstract
This paper discusses the challenges of SMEs with regards to the issue of road network and security. Survey data was collected through semi-structured questionnaires administered to 90 SMEs; also interviews were done with some members of the Federal Road Safety Corp (FRSC) and the Nigeria Police Force (NPF). With the aid of SPSS software, the study used descriptive statistics to present and analyze data. Some challenges identified are bad road conditions such as potholes and security issues such as theft. Based on these challenges, the following suggestion were made; the need for more roads to be constructed and for existing ones to be rehabilitated. There is also the need for security operatives to be properly funded to enable them discharge their duties effectively.

Keywords: SMEs, Road Network, Insecurity, Performance and Business Environment.

1. Introduction

According to the Lagos Chamber of Commerce and Industry (2019), good road network and security enhance easy accessibility to raw materials and it also breaks the limitation of interstate transaction while sound security aid the confidence of foreign and local investors. Inadequate roads have been identified as one of the factors contributing to the demise and poor performance of SMEs in the country (Igwe, Amaugo, Ogundana, Egere&Anigbo2018). For example, poor road network lead to increased costs of transporting goods, which in turn, increase the prices of goods. Therefore, the high cost of goods affect demand and consequently reduces SMEs customer patronage. According to Reddy (2007) insecurity has also been identified as one of the major threats to the existence of SMEs in developing countries. This is because insecure environments reduces working hours and also reduces investor confidence. Therefore, if there are reduced working hours, productivity could be affected which could also affect profits adversely. Moreover, when the confidence of investors is reduced it could make them unwilling to invest their resources, thereby, missing out on business opportunities.