Effect of Globalization on the Performance of Small and Medium Scale Enterprises in Nigeria

Akyuz Murat,Opusunju Michael Isaac

doi:10.11648/j.ajere.20190404.12

Akyuz Murat, Opusunju Michael Isaac

Open Access

https://doi.org/10.11648/j.ajere.20190404.12

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Abstract

The examined the effect of globalization on the performance of small and medium scale enterprises in Nigeria. The research design adopted for the study is ex-post facto and the population of this is all the small and medium scale enterprises in Abuja. The population of the study is 72838 and was used as the sample size. Globalization was measured by trade openness and small and medium scale enterprise performance was measured by SMEs output. The study covered a period of 32 years from 1986-2018. The statistical tools adopted in this study were descriptive statistics, correlation analysis, unit root test, co-integration and granger causality test. The analysis was conducted using e-view statistical software and the finding indicate that globalization influence the performance of small and medium scale enterprises in Nigeria. The study suggested that Nigerian government of Nigeria should encourage import and export of small and medium scale products and service across border and they should also place little or no restriction on SMEs products and services in order to encourage the SMEs output growth in Nigeria.

Highlights

Globalization could be defined in simple terms as the easy access or reach of a certain resource the world over
The objective of this study is to examine the causal effect of globalization on small and medium enterprises (SMEs) performance in Nigeria
The study is in line with the finding of Dotun et al (2018) and who found that causality runs unidirectional from trade openness to SMES performance

Summary

Introduction

Globalization could be defined in simple terms as the easy access or reach of a certain resource the world over. In this context, globalization is a way of removing trade barriers. Globalization is a phenomenon that no development agenda can afford to ignore. It is believed that higher degree of globalization in terms trade openness ensures better flow of income from developed countries to their developing counterpart which may influence the SMEs performance in terms of growth. It is evident that the latter (especially the ECOWAS Members) have not fully aligned their economies to allow the SMEs investment to stimulate satisfactory growth (9)

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Conclusion