Insurance Penetra on and Small and Medium Enterprises in Edo State

This empirical research investigates the Insurance companies and how it has impacted business operations of Small and Medium Scale Enterprises (SMEs) in Edo State, Nigeria, with a focus on Taxation (TAX), Interest rates (INT), Competition (COM), and Finance (FIN). The objective of this study is to identify opportunities for Improving Insurance penetration among SMEs in Edo State and to identify the barriers and challenges faced by SMEs in accessing insurance products and risk management services as well as evaluating the potential for tailored insurance solutions to address the specific needs of SMEs in Edo State.

A sample of 50 insurance workers and 50 SME operators were selected within Edo State using judgmental sampling technique. Data analysis employed was conducted with Statistical Package for Social Sciences (SPSS) Version 25.0 and was analyzed using regression models. The results indicate weak relationships between the independent variables and SMEs' business operations, with only a small portion of the variation in business performance explained by the model. Competition (COM), representing market competition, was found to have a minimal and statistically insignificant impact on SMEs operations, as did the other variables. Finance (FIN) had the largest negative effect, though it was not statistically significant.

These findings suggest that factors beyond Taxation, Interest rates, Competition, and Finance play a more substantial role in determining SME performance in Edo State. Based on these results, it is recommended that future research explore additional factors influencing SMEs, while financial institutions develop more tailored solutions for the sector. Policy reforms should also be considered to reduce financial burdens on SMEs and support their growth.