Effect of Business Innovation on Employment Creation Among SMEs in Anambra State

Abstract

The study examined the effect of business innovation on employment creation among SMEs in Anambra State. The objectives of the study were to: determine the effect of process innovation, management innovation, marketing innovation and product innovation on employment creation among SMEs in Anambra State. The sources of data for this research were mainly primary data. The population of the study consistsed of eighteen thousand, eight hundred and ninety-seven (18,897), while three hundred and ninety-one (391) was derived from taro yamane formular. Method of analysis was through statistical package for social sciences (SPSS). Multiple regression method were used in this study. The study found that; Product innovation had significant effect on employment creation among SMEs in Anambra State. ( t-statistics of 6.734 and probability value of 0.000). Management innovation had significant effect on employment creation among SMEs in Anambra State. (T-statistics of .788 and probability value of 0.480). Market innovation had significant effect on employment creation among SMEs in Anambra State. (T-statistics of 5.591 and probability value of 0.000). The study concludes that business innovation had a positive and significant effect on employment creation in Anambra state. It was recommended that there should be a strong emphasis on supporting and promoting product and process innovation, as these factors have shown significant positive relationships with SMEs performance. Policymakers and SMEs owners should prioritise initiatives that encourage the development and adoption of innovative products and processes within the SMEs sector.