1* Muhammad Sani Burodo, PhD, 2Muhammad Abubakar Magaji, PhD & 3Usman Muhammad Dakingari
1 & 2 Department of Business Administration and Management, Federal Polytechnic Kaura Namoda, Zamfara State, Nigeria.
3Bursary Department, Kebbi State University of Science and Technology, Aliero, Nigeria.
*Corresponding author: [email protected]
Abstract
The study examined the effect of inflation on the performance of SMEs in Katsina State. The method used for the study was the descriptive survey research design. The population comprised 7,372 registered SMEs operating in Katsina State and a sample size of 379 was determined using Taro Yaman formula. The data was obtained through the use of a questionnaire. The paper utilized multiple regression analysis to establish the relationship between the independent and the dependent variables. The results from the analysis indicated a negative relationship between the independent variables (uncertainty about future prices and exchange rate fluctuations) and the dependent variable (SMEs performance) denoting that as uncertainty about future prices and exchange rate fluctuations increase, SMEs growth decreases. The study therefore recommended that strategies should be implemented to reduce uncertainty about future prices by implementing regulatory measures that ensure price stability.
Keywords: Exchange rate fluctuations, Inflation, SMEs performance, Uncertainty about future price.