The impact of rural electrification on small-scale enterprises in Ekiti South-West Local Government Area, Ekiti State
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Background of the Study
Rural electrification in Ekiti South-West Local Government Area, Ekiti State, has become a catalyst for transforming small-scale enterprises. The expansion of electricity infrastructure into rural areas has enabled local entrepreneurs to adopt modern technologies, improve production processes, and access broader markets (Bamidele, 2023). Reliable electricity supply is crucial for powering machinery, enhancing communication, and reducing operational costs, which collectively stimulate economic growth and productivity (Akinpelu, 2024). Despite these benefits, challenges such as intermittent power supply and high connection costs still hinder the full potential of electrification projects. Recent evidence suggests that targeted policy interventions and public–private partnerships could further improve rural electrification outcomes and promote sustainable enterprise development (Oluwaseun, 2025). This study investigates the extent to which rural electrification has affected the performance of small-scale enterprises in Ekiti South-West, examining both the economic benefits and the operational challenges faced by entrepreneurs in the region.
Statement of the Problem
While rural electrification has been promoted as a means to stimulate small-scale enterprise development in Ekiti South-West, inconsistent power supply and infrastructural deficiencies continue to pose significant challenges. Many enterprises still experience operational disruptions and increased production costs due to erratic electricity supply (Ojo, 2024). These issues hinder the anticipated productivity gains and limit the overall economic benefits of electrification. This study seeks to investigate the specific challenges and benefits of rural electrification on small-scale enterprises, providing a clearer understanding of the factors that affect enterprise performance and proposing solutions to improve service reliability.
Objectives of the Study:
• To examine the impact of rural electrification on the productivity of small-scale enterprises.
• To identify operational challenges faced by businesses due to inconsistent power supply.
• To suggest policy measures for improving the reliability and affordability of rural electricity.
Research Questions:
• How does rural electrification affect the productivity of small-scale enterprises in Ekiti South-West?
• What operational challenges do these enterprises face as a result of power inconsistencies?
• Which policy interventions can enhance the benefits of rural electrification for local businesses?
Research Hypotheses:
• H1: Rural electrification significantly improves the productivity of small-scale enterprises.
• H2: Operational challenges related to power supply negatively affect enterprise performance.
• H3: Policy reforms aimed at stabilizing electricity supply enhance business outcomes.
Significance of the Study
This study is significant for understanding how rural electrification drives small-scale enterprise development in Ekiti South-West. It provides empirical evidence to inform policy reforms that address infrastructural challenges and enhance business productivity. The insights gained will assist stakeholders in designing more effective electrification strategies, fostering economic growth and sustainable enterprise development (Babatunde, 2023; Adekunle, 2025). The findings benefit both entrepreneurs and local policymakers.
Scope and Limitations of the Study:
This study is limited to examining the impact of rural electrification on small-scale enterprises in Ekiti South-West Local Government Area, Ekiti State. It focuses solely on electricity supply, business productivity, and related operational challenges, excluding other infrastructural factors. Data are derived exclusively from sources pertaining to the local electrification project.
Definitions of Terms:
• Rural Electrification: The process of extending electricity supply to rural areas.
• Small-scale Enterprises: Locally owned, small business operations typically operating with limited capital.
• Productivity: The efficiency and effectiveness with which enterprises utilize resources to produce goods or services.
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