EFFECTS OF GLOBALIZATION ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN ASABA, DELTA STATE

ABSTRACT This study examined the effects of globalization on the performance of Small and Medium Scale Enterprises (SMEs) in Asaba, Delta State. The increasing integration of global markets has created both opportunities and challenges for SMEs, particularly in developing economies like Nigeria. The study aimed to assess how globalization influences key performance indicators such as profitability, market expansion, competitiveness, and operational efficiency of SMEs in Asaba. A descriptive survey research design was adopted for the study. Data were collected from selected SME owners and managers within Asaba using structured questionnaires. The data collected were analyzed using descriptive statistics such as mean and percentages, alongside inferential statistics to test the formulated hypotheses. Findings from the study revealed that globalization has a significant impact on SMEs' performance. On the positive side, globalization enhances access to wider markets, advanced technologies, improved business practices, and foreign investment opportunities. However, it also exposes SMEs to intense competition from multinational corporations, increases operational risks, and creates challenges related to standardization and regulatory compliance. The study concluded that while globalization presents growth opportunities for SMEs in Asaba, its benefits are not fully maximized due to infrastructural deficiencies, limited access to finance, and inadequate managerial capacity. It was recommended that government should provide supportive policies, improve infrastructure, and facilitate access to funding, while SME operators should adopt innovative strategies, embrace technology, and improve their competitive capabilities to thrive in a globalized economy.