article · Journal of Social Sciences & Humanities
Fuel price increases present a direct challenge to the economic survival of micro, small, and medium enterprises. An empirical study of 400 enterprise owners and operators across Benue State, Nigeria, evaluated the consequences of rising fuel costs alongside the influence of adopting energy-efficient technologies. The analysis revealed that escalating fuel prices significantly undermine the economic sustainability of these enterprises. While adopting energy-efficient equipment positively supports overall business viability, it does not significantly buffer or moderate the adverse consequences brought on by higher fuel prices. To address these vulnerabilities, proposed measures include targeted fuel cost stabilisation mechanisms, state energy programmes, dedicated green finance solutions from commercial lenders, technical and managerial training for enterprise operators, and university-industry collaborations designed to foster context-specific energy innovations.
Rising operating costs threaten the survival of small businesses, which are critical drivers of employment and economic growth. Understanding how energy expenses affect enterprise sustainability helps policymakers, financial institutions, and industry groups design targeted financial buffers and energy initiatives that genuinely protect small operators during energy market disruptions.
The findings point to immediate opportunities for financial institutions to create green finance products tailored to small enterprises seeking energy upgrades. They also suggest an applied pathway for university-industry partnerships to develop context-specific energy innovations. However, as this is survey-based policy and management research, the commercial readiness of specific technological solutions depends on subsequent technical development and deployment programmes.
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This study examines the impact of fuel price hikes on the economic sustainability of Micro, Small, and Medium Enterprises (MSMEs) in Benue State, Nigeria, and assesses the moderating role of energy-efficient technologies. Conducted across the three senatorial districts of Benue State, the study utilized a survey research design with a sample of 400 MSME owners and operators, and data collected through structured questionnaires. For data analysis, the study employed descriptive statistics and Structural Equation Modelling (SEM) to explore relationships among variables and test the proposed hypotheses. The findings reveal that fuel price hikes have a significant negative effect on the economic sustainability of MSMEs. Furthermore, energy-efficient technologies were found to positively influence MSME sustainability. However, these technologies did not significantly moderate the negative impact of fuel price hikes. Based on these findings, several policy recommendations were proposed: the establishment of a Fuel Cost Stabilization Fund for MSMEs by the Federal Government; the launch of a State-Level Energy Efficiency Initiative in Benue State; the development of green finance products for MSMEs by financial institutions; the enhancement of technical and managerial capacity among MSMEs for effective technology adoption; and the promotion of context-specific energy innovation through university-industry partnerships.
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DOI: 10.62810/jssh.v2i4.136
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