Financial Resilience and Business Sustainability of Small-scale Manufacturing Firms in Abuja, Nigeria
Aniah, Margaret Theresa
Department of Business Administration, Veritas University, Abuja, Nigeria.
Oyeku, Oyedele Matthew *
Department of Entrepreneurial Studies, Veritas University, Abuja, Nigeria.
Aniah, Justin Unimke
Department of Business Administration, Veritas University, Abuja, Nigeria.
Tutuwa, Jummai Adamu
Federal Institute of Industrial Research Oshodi, Lagos, Nigeria.
Anavhe, Mary Omokhele
Department of Business Administration, Veritas University, Abuja, Nigeria.
Agbayekhai, Michael Oshioke
Department of Business Administration, Veritas University, Abuja, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
Business sustainability remains a critical challenge for small and medium-scale manufacturing firms operating in Nigeria's volatile economic environment. This study examined the effect of financial resilience on the business sustainability of small and medium-scale manufacturing firms in Abuja, focusing on five dimensions: financial buffer, liquidity management, access to finance, financial adaptability and recovery capacity. The study was anchored in the Resource-Based View theory. A quantitative research design was adopted, and data were collected from 240 respondents drawn from small and medium-scale manufacturing firms in the Federal Capital Territory, Abuja. Multiple regression analysis was employed to examine the individual and joint effects of the five dimensions on business sustainability. The findings revealed that financial adaptability had a positive and highly significant effect on business sustainability, while access to finance also exerted a positive and significant effect. Financial buffer and liquidity management had positive but statistically insignificant effects, while recovery capacity was positive and significant when examined independently but became insignificant when the five dimensions were considered jointly. Collectively, the five dimensions of financial resilience significantly explained 61.1% of the variance in business sustainability (R² = .611). The study concludes that financial resilience is a significant multidimensional determinant of business sustainability, with financial adaptability and access to finance providing the strongest independent contributions. The study recommends strengthening SMEs' capacity for financial adaptation, alongside improved access to affordable financing.
Keywords: Financial resilience, business sustainability, financial adaptability, access to finance, financial buffer, liquidity management, recovery capacity, manufacturing SMEs, small and medium-sized enterprises, Abuja