The Nexus between Industrial Parks and the Sustainability of Small and Medium-Scaled Ventures

Abstract

Investigations on industrial parks appear to be slim with inadequate statistical data in spite of their growing connectedness with sustainability and the importance of their establishment. They were required to curb the overarching challenges of small and medium-scaled ventures (SMVs). To revert the status quo and justify the call for the timeliness of empiricism in this regard, the study investigated the extent to which industrial parks (IPs) impact the sustainability of SMVs. Specifically, it hypothesizes that competition among IP firms affects innovativeness and that government tax incentives impact the cost efficiency of SMVs in Enugu State in Nigeria. Empirical data for the study’s analyses were gathered from the distributive trade, manufacturing, agriculture and allied products, and commerce and tourism sub-sectors of SMVs in the Enugu metropolis, Enugu State, Nigeria. Adopting a descriptive survey design, 711 staff members from the aforementioned SMV sub-sectors in Enugu State, Nigeria were included as the research population. The regression analytics tool was used to analyze the data, following collection, using a structured questionnaire. The study’s results indicate that competition had a significant positive impact on SMVs’ innovativeness in the Enugu metropolis (R = 0.575, β = 0.283, t = 6.794, p = 0.000 < 0.05), while the government’s tax incentive had a significant positive impact on SMVs’ cost-effectiveness (R = 0.267, β = 0.213, t = 6.472, p = 0.000 < 0.05). Therefore, the study concluded that the pursuit of sustainability stimulated competition, resulting in higher levels of innovativeness, while government support in the form of tax incentives helped to lower SMVs’ costs of operating in the parks. As a result, SMVs can maintain viability through a well-planned structure of the industrial park.