FIRM RESOURCES AND SMALL AND MEDIUM ENTERPRISE PERFORMANCE IN KOGI STATE, NIGERIA

Small and medium enterprises (SMEs) are indicators and major drivers of industrialization, modernization, meaningful and gainful employment for all those who are able and willing to work, income per capita, and urbanization. However, efforts to improve financial performance and growth of SMEs remain futile partly due to lack of adequate knowledge by the concerned stakeholders on how capacity building impacts on the performance and growth of SMEs. The purpose of the study was to examine firm capability and ERM process on SME's performance in lokoja, Kogi state. The major objectives of the study was to examine firm capability and ERM process on SME's performance in Lokoja, Kogi state. Two hypotheses were formulated for testing and the hypotheses were tested using inferential statistics through the help of SmartPLS3 software. The study is cross-sectional in nature with a population of the study comprising SMEs in Kogi state. 244 sample size was determined and questionnaires were administered. Results of the analysis revealed that firm capability and enterprise risk management process are significant predictors of performance. The study showed that for improved performance or to reduce underperformance of the sub-sector, small and medium scale enterprises must recognise the importance of proper enterprise risk management process in investing accessed finance.