Abstract
Small and medium enterprises (SME) performance forms a very important part of the Nigerian economy. The SME sector is a major engine which encourages the growth of jobs and wealth creation in the country’s economic system. SMEs performance act as a significant part that is linked to the strengthening and enhancement of the development of the country. The SME performance and growth in manufacturing, agriculture, services, and so on, has been considered as the engine drive and has contributed to the Nigeria economy. Sustainable growth and the increase of SME performance, competitiveness will open numerous doors for employment opportunities, tangible and intangible assets (investment) in the environment. The SME sector has developed rapidly over these years. The major aim of this paper is to look into the SME sustainable competitive advantage and emphasis on its growing importance. Likewise, some guidelines were offered in order for SMEs to reach performance and competitive advantage. In a wider perspective, this paper would provide some available conclusions and concrete recommendations. Besides, this work will serve as an information cause that will promote and orient SMEs performance towards competitive advantage. Through this way, it will contribute to the continuous promotion and active growth of SMEs, as easily to increase the level of the firm’s performance and business competitiveness in Nigeria.
Highlights
The performance and growth of small and medium enterprises (SMEs) is a major driver and indices for the level of industrialization; modernization; urbanization, gainful and meaningful employment for all those who are able and willing to work, equitable distribution of income, the welfare, income per capital and quality of life enjoyed by the citizenry (Aremu & Adeyemi, 2011), because Small and medium enterprises (SME) contribute to employment growth at a higher rate than larger firms (Farouk & Saleh, 2011)
A survey conducted by the Federal Bureau of Statistics (FBS) across the 36 states of the federation and the Federal Capital Territory (FCT) analyzed by the Minister of Trade and Commerce, Olusegun Aganga; shown that there was a total of 17.28 million SMEs in the country out of which 17.26 million are micro enterprises valued at less than N5 million (This Day Newspaper, July 20, 2012; NBS, 2012)
From the literature review; organizational competitive advantage from the RBV is consequential as it can be used as a conceptual measure for SMEs performance in particular through application and manipulation of identifying internal and external organizational resources to raise their competitive advantageous position
Summary
The performance and growth of small and medium enterprises (SMEs) is a major driver and indices for the level of industrialization; modernization; urbanization, gainful and meaningful employment for all those who are able and willing to work, equitable distribution of income, the welfare, income per capital and quality of life enjoyed by the citizenry (Aremu & Adeyemi, 2011), because SMEs contribute to employment growth at a higher rate than larger firms (Farouk & Saleh, 2011). Small and Medium Scale Enterprises have been acknowledged to have a prodigious potential for sustainable Development. It is primarily through the growth of SMEs that employees made redundant by large firms have been absorbed back into the work force (Storey, 1994; Frank & Landstrom, 1998). Firm-based performance is measured in terms of the emphasis on employee development, customer satisfaction, job satisfaction and efficient organizational internal processes (Murphy et al, 1996; Neely, 2005; Spivey & McMillan, 2002; Wang & Lo, 2003). In Nigeria the importance and performance contributions of Small and medium scale business as a creator of employment, in particular, those with low skill level, is widely recognized. In the last few years, an increase in employment of SMEs has exceeded the increase in their contribution to GDP, highlighting the
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