Assessing the effect of banditry on small and medium size enterprises performance in Kaduna, Katsina and Zamfara state Nigeria

Abstract

The persistent rise in banditry in northern Nigeria has led to increased insecurity, severely disrupting economic activities, particularly among Small and Medium Enterprises (SMEs). This has resulted in a significant reduction in the operational capacity and growth of these businesses. This study investigates the impact of banditry on the performance of Small and Medium Enterprises (SMEs) in Kaduna, Katsina, and Zamfara states, Nigeria. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the research analyzed data from 300 valid responses collected through structured questionnaires administered to SME owners and managers. The study focuses on the frequency, severity, and geographical spread of banditry as key constructs influencing SME performance. The findings reveal that the frequency and severity of banditry incidents have significant negative effects on SME performance, while the geographical spread of banditry has a minimal impact. These results underscore the need for targeted interventions that prioritize reducing the frequency and severity of attacks, rather than merely addressing their geographic distribution. Recommendations include enhancing security measures, increasing community policing, and investing in local intelligence networks to mitigate banditry. SMEs are encouraged to adopt resilience strategies such as diversifying operations and investing in security infrastructure. This study contributes to the academic understanding of banditry’s impact on business performance and emphasizes the importance
of tailored interventions to support SME resilience and economic growth in affected regions.