EFFECT OF BUSINESS STRATEGY AND SURVIVAL OF SMEs IN NIGERIA: A CASE STUDY OF TITO YOGURT, MAKURDI METROPOLIS, BENUE STATE, NIGERIA

Abstract: This study examined the effect of business strategy on the survival of small and medium enterprises (SMEs), using Tito Yogurt, Makurdi, Benue State, as a case study. Specifically, the study examined the effects of strategic planning, customer orientation, innovation strategy, and strategic flexibility on SME survival. The study adopted a case study and survey research design. The population comprised 100 employees of Tito Yogurt, from which a sample size of 80 respondents was determined using the Taro Yamane formula. Data were collected through a structured questionnaire and analysed using mean and standard deviation for the research questions and multiple regression analysis for the hypotheses at a 5% level of significance. The findings revealed that strategic planning, customer orientation, innovation strategy, and strategic flexibility had positive and significant effects on SME survival. The regression model showed that the four dimensions of business strategy jointly explained 83.2% of the variation in SME survival (R² = 0.832), while the overall model was statistically significant (F(4,75) = 86.214, p < 0.001). Customer orientation had the strongest relative effect (β = 0.315), followed by strategic planning (β = 0.267), strategic flexibility (β = 0.252), and innovation strategy (β = 0.219). The study concludes that effective business strategy is essential for sustaining SME operations, customer retention, revenue stability, profitability, competitiveness, and resilience. It recommends that Tito Yogurt should strengthen strategic planning, deepen customer orientation, invest in innovation, and enhance strategic flexibility to improve its long-term survival.