The Mediating Role of Patronage Factors in the Nexus Between Waste Recycling Management and the Development of Small and Medium Enterprises (SMEs) in Kano State, Nigeria

This study empirically examines the nexus between waste recycling management and the development of small and medium enterprises (SMEs) in Kano State, Nigeria. It specifically investigates the mediating role of patronage factors such as community support and customer loyalty. The research explores how properly managed sewage recycling can contribute to increased employment in the SME sector, promote local production of goods and services, reduce foreign exchange dependency, and support the appreciation of the Naira. Using a correlational research design, the study surveyed a sample of 81 scavengers (drawn from a population of 455) using the Taro Yamane (1976) formula, with data collected via structured questionnaires and snowball sampling technique. The analysis revealed that regulatory factors—including government policies and tax incentives—positively impact SME development. The model's R² of 0.233 indicates that 23% of the variation in SME development is explained by the predictors (Regulatory Framework, Institutional Capacity, and Cultural Factors), with the remaining 77% attributed to other unexplored variables. Furthermore, the model’s F-test result (8.223, p < 0.000) confirms the statistical significance of the predictive relationship. Interestingly, customer patronage was identified as a key enhancer—SMEs that effectively communicate their compliance with regulations attract more loyal customers, boosting their growth even in challenging environments. The study recommends that SMEs invest in strategic marketing to highlight compliance with regulatory standards, thereby strengthening customer trust and fostering sustainable growth.