The Effect of Industrial Clustering on the Performance of Small and Medium Scale Tailoring Businesses in Samaru, Sabon Gari Local Government Area of Kaduna State, Nigeria

Abstract

This study examined the effect of industrial clustering on the performance of small and medium scale tailoring
businesses in Samaru, Sabon Gari Local Government Area of Kaduna State in Nigeria. Questionnaire and
Global Positioning System (GPS) were used for data collection. A total of 180 questionnaires were administered
to the respondents. Data was analysed using both descriptive andPearson Product Moment Correlation (PPMC)
statistics. The Average Nearest Neighbour Analysis tool in ArcGIS 10.1 software was used to determine the
spatial distribution of tailoring businesses in the study area. Findings revealed a strong correlation index of
0.704 between industrial clustering and the performance of small and medium scale tailoring businesses. Also,
the result showed nearest neighbour index with a p-value of 0.000001, and a z-score of -19.288510 which
indicated that the spatial distribution of the SMEs is clustered. Hence, SMEs derive a lot of benefits from
clustering; it was recommended that SMEs should have access to low interest loan that would improve the
productive capacity of the tailoring businesses.