EFFECT OF COMMUNAL CLASHES ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN EBONYI STATE: A STUDY OF SELECTED COMMUNITIES IN EBONYI STATE

Abstract

INTRODUCTION: Study focused on the effect of communal clashes on the performance of SMEs in Ebonyi State. METHODOLOGY: Study adopted a survey method using questionnaire as instrument for data collection.  Data were analyzed with descriptive statistics while hypotheses were tested with Chi-square and Pearson product-moment correlation coefficient. RESULT: Communal clashes have relationship with the survival of SMEs (r =0.864, P<0.05).  Cessation of movement/ absenteeism of workers has relationship with sustainability of SMEs (r =0.770, P<0.05). Early dialogue between the aggrieved parties will prevent communal clashes. Government building social amenities for all on the land if settlement is not feasible. Buffer in form of soft loans or grants to adversely affected SMEs owners were suggested strategies (X²_C=141.144 < X²_E=0.599. CONCLUSION: Disruption of production processes, no patronage, expiring of stored goods, no cash flow for loan repayments and total extinction of some SMEs were some of the effects of communal clashes on SMEs. IMPLICATION FOR RESEARCH: Study provided alternative to clashes by proposing early dialogue through town-hall meetings between aggrieved communities or government taking over the element of dispute to prevent communal clashes.