Financial Strategies for Sustainability of Enterprises in Nigeria: The Manufacturing and Trading Sector Outlook

Abstract

Although small and medium enterprises (SMEs) contribute significantly to Nigeria’s socioeconomic and political development, most of the country’s SMEs no longer operate by their fifth anniversary. Many owners lack knowledge of the financial strategies required for the long- term performance and growth of their enterprise. The aim of this qualitative multiple case study was to gain an in-depth understanding of financial strategies that SMEs owner-managers can adopt to enhance the sustainability of their business operations in Nigeria. This study was grounded in entrepreneurship theory and Porter’s model of competitive strategy. Qualitative data were collected from semi structured interviews, observational field notes, and reflections. The participants were six SME owner-managers who employ between 10-99 employees within the manufacturing and trading sectors. Thematic analysis of data produced (a) using available financing options, (b) entrenching strategic financial practices, (c) adopting effective long-term financial planning, (d) embracing entrepreneurial resilience, and (e) taking advantage of technology. The findings revealed the need for SME owner-managers to be dynamic in their financial strategy practices. By doing so, SME owner-managers may be able to sustain their businesses, which may promote positive social change through job creation, wealth distribution, technological innovation, grassroots development, and enhancement of gross domestic product.