Effect of Investment Readiness On Growth Outcomes Among Selected Small and Medium Enterprises in Abuja (Published)
This study assesses the effect of investment readiness on SME market expansion in Abuja, Nigeria, where many firms find it demanding to grow outside their immediate environment not only because of inadequate access to financing opportunities but also because they are not fully organized to draw and control investment. Based on this the study concentrates on three key dimensions: financial transparency, investor communication, and governance systems that hinders investor confidence and make it difficult for SMEs to expand. The main objective is to assess how financial transparency, investor communication, and ownership and governance readiness influences SME growth in terms of market expansion. A quantitative cross-sectional descriptive survey design was adopted. The study focused on selected SME owners and Chief Executive Officers (CEOs) in Abuja who possessed adequate knowledge of their firms’ investment readiness practices. Using purposive sampling, 45 SMEs were approached via an online survey administered through Google Forms, and 35 valid responses were obtained and analysed, representing an 87.5% response rate. Data were collected using a structured questionnaire designed on a five-point Likert scale measuring investment readiness dimensions and market expansion as the proxy for growth outcomes. Data were analysed using descriptive statistics and multiple regression analysis via SPSS. Findings show that financial transparency (t = 3.21), governance readiness (t = 2.89), and investor communication (t = 3.67) all have significant positive effects on SME market expansion at the 5% significance level. The study concludes that investment readiness significantly drives SME growth and competitiveness. It recommends improved financial reporting systems, stronger governance structures, and enhanced investor communication to support sustainable SME expansion.
Keywords: Small and Medium-Sized Enterprises Growth, financial transparency, governance readiness, investment readiness, investor communication