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VOL. 2, ISSUE 3 (2026)
Ownership structure and enterprise performance and longevity among SMEs in South-East Nigeria
Authors
Dr. Onodugo Chinwe Felicia, Dr. Olachi Chuks Ronnie, Dr. Igatta Evangeline Amaka, Dr. Igatta Thomas Ogbonna
Abstract
Small and
medium-sized enterprises (SMEs) constitute an important component of economic
development through employment creation, income generation, innovation, and
local economic activity. This study examined the relationship between ownership
structure, enterprise performance, and longevity among SMEs in South-East
Nigeria, with particular attention to the mediating roles of managerial
professionalism, access to finance, and decision-making speed. The study
adopted a quantitative research design based on data from 900 SMEs drawn from
Abia, Anambra, Ebonyi, Enugu, and Imo States. Ownership structures were
classified into sole proprietorships, family businesses, partnerships, and
private limited companies. Enterprise performance was assessed using monthly
revenue, profit margin, and sales growth, while longevity was measured through
years of operation, business status, and survival years. Descriptive
statistics, analysis of variance (ANOVA), mediation analysis, and Cox
proportional hazards analysis were employed. The findings revealed substantial
differences in enterprise performance across ownership structures. Private
limited companies recorded the strongest overall performance, followed by
partnerships, family businesses, and sole proprietorships. The difference in
performance across ownership categories was statistically significant (F =
67.4, p < .001). Private limited companies generated mean monthly revenue of
approximately ₦4.1 million and mean sales growth of 15.1%, compared with
₦680,000 and 4.3%, respectively, among sole proprietorships. Family businesses
demonstrated the greatest longevity, with a mean survival period of 8.7 years
and a closure rate of 9.6%. Cox survival analysis indicated that family
businesses had a lower hazard of business failure relative to sole
proprietorships (HR = 0.58). Access to finance mediated approximately 38% of
the effect of ownership structure on revenue, while a one-unit increase in
insecurity exposure was associated with an estimated 3.1 percentage-point
reduction in growth. The study concludes that ownership structure is an
important determinant of both SME performance and longevity, although the
ownership arrangements that maximize financial performance are not necessarily
those associated with the longest survival.
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Pages:41-47
How to cite this article:
Dr. Onodugo Chinwe Felicia, Dr. Olachi Chuks Ronnie, Dr. Igatta Evangeline Amaka, Dr. Igatta Thomas Ogbonna "Ownership structure and enterprise performance and longevity among SMEs in South-East Nigeria". World Journal of Research in All Subject, Vol 2, Issue 3, 2026, Pages 41-47
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