THE EFFECT OF COST OF POWER GENERATION ON THE PROFITABILITY OF SMALL-SCALE BUSINESSES IN SELECTED SMES IN DAMATURU
Abstract
This study examines the effect of the cost of power generation on the profitability of small-scale businesses in selected Small and Medium Enterprises (SMEs) in Damaturu, Yobe State. High electricity costs and frequent power outages compel SMEs to rely on alternative energy sources, such as diesel-powered generators, which significantly increase operational expenses. The study explores how these costs influence business profitability, operational efficiency, and competitiveness. Data were collected using structured questionnaires and analyzed using both qualitative and quantitative methods. Findings indicate that the high cost of power generation reduces profit margins, limits business growth, and hampers overall sustainability. The study concludes that reliable and affordable power supply is essential for the growth of SMEs. Recommendations include government support for improved electricity infrastructure, subsidies for small businesses, and encouragement of renewable energy alternatives to reduce dependence on costly generators.
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