The Impact of Entrepreneurial Networks on The Performance of Small Business in Nigeria

Olufemi Aladejebi

doi:10.14738/abr.83.8019

Abstract

Networking is ultimately the process of exchanging information between two or more people; in this case, entrepreneurs. The main objective of this paper is to look into the firm attributes related to formal networking and investigate whether membership in formal networks in the form of business associations and industry/trade-specific associations has been an impact on the growth of SMEs business in Lagos, Nigeria. A purposeful sample was used to select respondents. Questionnaires designed to examine the views of the entrepreneur about SME networking were distributed amongst two SME groups, namely Nigerian Association Of Small Scale Industrialists (NASSI), Lagos, and PHARMALLIANCE (Association of Community Pharmacists). The research instrument was based on a five-point Likert scale. The questionnaire administered contained 2parts, Part 1: contains general information, while Part 2: contains specific questions relating to networking. The results of the analysis showed a generally positive overview of SME networking in Nigeria. The respondents mostly agree across both groups that networking is of great benefit to their businesses.

Highlights

The objective of the Study The purpose of this paper is to look into the firm attributes related to formal networking and investigate whether membership in formal networks in the form of business associations and industry/trade-specific associations has been an impact on the growth of SMEs business in Lagos, Nigeria
Questionnaires designed to examine the views of the entrepreneur about SME networking were distributed amongst two SME groups Nigerian Association Of Small Scale Industrialists (NASSI), Lagos, and PHARMALLIANCE (Association of Community Pharmacists)
PHARMALLIANCE comprises mainly of pharmacists 39.68% of the respondents were operating in the pharmaceutical industry; SMEs under Nigeria Association of small and medium enterprises (NASME) operated across different industry types as follows: Agricultures (13.49%), Construction (0.79%), Education (1.59%), Fashion (3.97%), Finance (0.79%), Food (19.05%), Interior Décor (0.79%), Manufacturing (11.11%), and Technology (5.56%)

Summary

Introduction

The role of networking is pertinent to the entrepreneurial growth of SMEs. According to Huggins & Thompson (2015), the inter-organizational network can be classified into two broad categories: Contact networks, through which organizations source knowledge and alliance networks, through which organizations collaborate to innovate. According to Huggins & Thompson (2015), the inter-organizational network can be classified into two broad categories: Contact networks, through which organizations source knowledge and alliance networks, through which organizations collaborate to innovate Networks consist of those persons with whom the entrepreneur has a direct relationship and those with whom the entrepreneur has indirect relationships through his direct relationships (Aldrich & Zimmer, 1985). Network formation is an essential aspect of small business development (Abeka, 2011). Entrepreneurial networks are always regarded as advantageous for the success of small businesses (Abeka, 2011)

Objectives

Results

Conclusion