ARCHIVES
VOL. 2, ISSUE 3 (2026)
Impact of kidnapping and insecurity on the performance and survival of small businesses in South-East Nigeria
Authors
Dr. Igatta Evangeline Amaka, Dr. Olachi Chuks Ronnie, Dr. Onodugo Chinwe Felicia, Dr. Igatta Thomas Ogbonna
Abstract
The escalating
incidence of kidnapping and insecurity in South-East Nigeria has created
substantial socioeconomic challenges, with potentially severe consequences for
the performance, continuity, and survival of small businesses. This study
examined the impact of kidnapping and insecurity on the performance and
survival of small businesses across Abia, Anambra, Ebonyi, Enugu, and Imo
States. The study utilized data from 500 small businesses distributed across
the five states. Business performance and survival were assessed using monthly
revenue, profit margin, business growth rate, and survival status, while
insecurity was measured through kidnapping exposure, perceived insecurity,
business attacks, ransom payments, and monthly security expenditure. Potential
transmission mechanisms, including changes in customer traffic, supply-chain
disruption, and employee absenteeism, were also examined. Descriptive and
multivariate analytical techniques were employed to evaluate the relationships
among the variables. The findings demonstrated substantial exposure to
insecurity: 38% of businesses reported kidnapping exposure and 23% had
experienced an attack within the preceding 12 months. Perceived insecurity was high
(M = 3.78), while average monthly security expenditure was ₦84,700. Customer
traffic declined by an average of 28.4%, employee absenteeism averaged 18.2%,
and the mean business growth rate was -9.3%. A one-unit increase in the
insecurity perception index was associated with a 4.2 percentage-point decline
in business growth (p < .001). Direct victims of kidnapping had 62% lower
odds of business survival than businesses without kidnapping exposure (OR =
0.38). Furthermore, each ₦100,000 increase in security expenditure was
associated with a 1.1 percentage-point reduction in profit margin. Supply-chain
disruption mediated approximately 41% of the relationship between insecurity
and revenue, while digital presence reduced the adverse impact of insecurity by
approximately 34%. The study concludes that kidnapping and insecurity
constitute significant threats to small-business performance, investment
sustainability, and enterprise survival in South-East Nigeria. Strengthened
security architecture, targeted SME support, improved access to credit,
digitalization, and resilient supply-chain strategies are recommended.
Download
Pages:22-29
How to cite this article:
Dr. Igatta Evangeline Amaka, Dr. Olachi Chuks Ronnie, Dr. Onodugo Chinwe Felicia, Dr. Igatta Thomas Ogbonna "Impact of kidnapping and insecurity on the performance and survival of small businesses in South-East Nigeria". World Journal of Applied Research, Vol 2, Issue 3, 2026, Pages 22-29
Download Author Certificate
Please enter the email address corresponding to this article submission to download your certificate.