GROWTH STRATEGY ADOPTION AND PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN ENUGU STATE, NIGERIA

The study investigated the effect of growth strategy adoption on performance of small and medium enterprises in Enugu State, Nigeria. The specific objectives include; ascertain the effect of market penetration strategy on sales growth of small and medium enterprises in Enugu State, Nigeria and determine the effect of product development strategy on product-oriented innovativeness of small and medium enterprises in Enugu State, Nigeria. The study used survey research design. The population of the study was one thousand four hundred and seven (1,407) registered small and medium scale enterprises. The sample size of the study was 150 respondents. Instrument used for data collection was the questionnaire. The reliability coefficient of instrument was 0.78 and this was measured using Cronbach’s alpha coefficient which showed consistency of the instrument. T-test tool was used in testing the hypotheses. Findings revealed that market penetration had a significant positive effect on sales growth of SMEs in Enugu State, Nigeria (t =87.695, pv .000<0.05 level significant) and product development strategy had a significant positive effect on product-oriented innovativeness of SMEs in Enugu State, Nigeria (t= 79.401, pv .000<0.05 level of significant). The study concluded that growth strategy adoption had a significant positive effect on performance of SMEs in Enugu State, Nigeria. Based on the findings and conclusion reached, the study recommended that that management of Aqua Rapha should also embark on serious exercise, training and development of personnel on market penetration strategy as tools to increase sales growth in an organization and Aqua Rapha should foster product development strategy as a culture within firm experimentation in order to encourage employees to explore new ideas and approaches, they involve some level of uncertainty. Create incentives for innovation and recognize and reward employees who contribute innovative solutions