Knowledge acquisition, knowledge retention and small and medium scale enterprises’ performance in Zamfara state

Abstract

The financial success of SMEs is of interest to various stakeholders, including business owners and managers concerned with job security and compensation, investors seeking returns, governments focused on tax revenues, and employees valuing job stability. This study examines the impact of Knowledge Acquisition and Knowledge Retention on Financial Performance of Small and Medium Enterprises (SMEs) in Zamfara State. A sample of 386 SMEs was selected from a population of 10,003 using Krejcie and Morgan (1970) sampling technique. Primary data was collected through closed-ended questionnaires and analyzed using multiple regression with SPSS. Knowledge Acquisition and Knowledge Retention are the independent variables while financial performance is the dependent variable.  The results reveal that both Knowledge Acquisition and Knowledge Retention have a positive and significant effect on Financial Performance. The study supports the Organizational Learning Theory, emphasizing the importance of learning and adaptation in organizations. It is concluded and recommended that SMEs in Zamfara State should invest in knowledge acquisition initiatives such as training, workshops, and conferences to enhance their financial performance and also prioritize knowledge retention strategies such as documentation, mentoring, and employee development programs to sustain and improve their financial performance.