EFFECT OF INNOVATION ON THE PROFITABILITY OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) IN BIDA METROPOLIS

Abstract

Micro, small, and medium-sized enterprises (MSMEs), are the foundation of every nation's economy. To assure the necessary rate of economic growth, innovation among micro, small, and medium-sized firms (MSMEs) in Nigeria is essential for their survival. Every micro, small, and medium-sized organization experiences innovation in a variety of areas. They include both process and product innovations. This study examined the effect of innovation on the profitability of Micro, Small and Medium Enterprises (MSMEs) in Bida metropolis. The research method used for the study was survey. A structured questionnaire with a 5-point Likert scale was the instrument utilized. Using a census technique, a sample of fifty-four (54) MSMEs in the Bida local government was chosen. Multiple Regression analysis was used to examine the data collected through surveys. The findings of the regression analysis demonstrate that innovation has a favorable and substantial impact on the success of MSMEs in the Bida metropolitan. The study therefore recommended among others. As a result of innovation's beneficial effects on MSMEs' profitability, Niger State MSMEs have to adopt new products and business innovation. Entrepreneurs and potential entrepreneurs must be open to different innovation strategies. They should be ready to encourage their employees to innovate by empowering them. The government should support the innovation of micro, small and medium-sized enterprises through grants and
subsidies.