Small And Medium Enterprises In Nigeria Research Articles

Entrepreneurial management, competitive advantage and SME performance: evidence from an emerging economy

Purpose There is a paucity of empirical studies on the impact of entrepreneurial management on small and medium enterprises (SME) performance. Against this backdrop and drawing upon the resource-based view, this study aims to explore the relationship between entrepreneurial management and SME performance and the mediating role of competitive advantage in an emerging economy. Design/methodology/approach This study adopted a survey research design and a quantitative approach. A self-reported questionnaire was used to collect data from a conveniently selected sample of 174 manufacturing SMEs in Nigeria. This study performed mediation analysis to test the proposed hypotheses using Hayes’ PROCESS macro v4. Findings The findings indicate that entrepreneurial management positively impacts competitive advantage and SME performance. Furthermore, competitive advantage has a positive impact on SME performance and plays a significant mediating role in the relationship between entrepreneurial management and SME performance. Research limitations/implications This study only examines manufacturing SMEs in a single country, Nigeria; thus, the generalisability of its findings is limited. Practical implications The findings of this study offer practical implications for SMEs and SME owners or managers. The findings suggest that to gain a sustainable competitive advantage and achieve superior performance, SMEs should pursue opportunities regardless of the available resources, promote flat and flexible organisation structures, adopt fast growth orientation and strategies, reward employees based on the value they add to the organisation and foster an entrepreneurial culture. Originality/value To the best of the authors’ knowledge, this study is the first to provide empirical evidence of the mediating effect of competitive advantage on the relationship between entrepreneurial management and SME performance in an emerging economy. This study demonstrates that implementing entrepreneurial management practices by SMEs can result in sustainable competitive advantage and superior performance.

Impact of Entrepreneurial Activities on Organisational Innovativeness of Small and Medium Enterprises (SMEs) in Osun State, Nigeria

Purpose. The entrepreneurial activity has requirements that distinguish it from other professional activities, especially managerial activities and other requirements associated with recognizing business opportunities and engaging in innovative activity. Meanwhile, Entrepreneurial activities have been identified in the literature as drivers of SMEs’ growth and development. The study determined the mechanisms by which entrepreneurial activities impact the organisational innovativeness of Small and Medium Enterprises (SMEs) in Osun State, Nigeria. Design/Methodology/Approach. This study adopted a survey research design. The population of this study consisted of three thousand and seven (3007) Owners/Managers of registered SMEs in Osun State, Nigeria. The sample size of three hundred and fifty-three (353) for the study was arrived at using the Taro Yamane formula for sample size. This study employed a simple random sampling technique for the selection of respondents across all the three senatorial districts in Osun State. The primary data used for the analyses were collected from the respondents through the use of a structured questionnaire, and responses were analysed using descriptive and inferential statistics. Finding and Implication. Two hypotheses were proposed and tested. The first hypothesis revealed a significant impact of creativity at (R2 = 0. 982, β = 0.1.004, t = 90.701, p< 0.05) on SMEs organisational innovativeness and the second hypothesis revealed a significant impact of knowledge transfer at (R2 = 0.993, β = 0.1.012, t = 144.459, p< 0.05) on organisational innovativeness. Therefore, policymakers may be encouraged to develop and support policies that promote a creative culture and facilitate knowledge-sharing mechanisms among SMEs. Limitations. The study focuses only on entrepreneurs’ creativity, without recognizing the employee creativity. The study was also constrained by the cross-sectional and singlerespondent nature of the study. Originality. The claim about measuring performance with organisational innovativeness remains unclear to SMEs in Nigeria because most of the researches were carried out among large enterprises.

The Impact of Business Diagnostics on the Activities of SMEs in Nigeria

In the context of Nigeria, where the average lifespan of businesses is limited to approximately five years, addressing and overcoming challenges has become a critical imperative. This study underscores the pivotal role of business diagnostics in supporting the growth and sustainability of businesses, particularly Small and Medium Enterprises (SMEs), in Nigeria. Specifically, it investigates how SMEs in Nigeria employ diagnostic tools, such as SWOT analysis, to discern their strengths, weaknesses, opportunities, and threats. Utilizing a qualitative research methodology, the study employs a structured, open-ended questionnaire as the primary data collection instrument, with a sample of fifteen strategically chosen SMEs participating in a specialized course at a business school. Purposive sampling ensures diversity among the selected SMEs, enriching the depth of the collected data. The structured, open-ended questionnaire allows participants to express their perspectives, facilitating in-depth responses freely. Thematic analysis is applied to identify patterns and insights within the qualitative data, providing nuanced answers to the research questions. The findings underscore that business diagnostics significantly contribute to the effective management and growth of SMEs in Nigeria, illuminating the potential for increased economic development through improved SME performance. Incorporating the results, the study sheds light on the varied experiences and perspectives of SMEs with business diagnostics, offering a rich and contextualized exploration of the subject matter. Meaningful recommendations derived from the study's findings, contribute to the body of knowledge on effective business diagnostics for SMEs in Nigeria.

Impact of Development Bank Credit Financing on Growth of SMEs in Nigeria

Over the years, small and medium enterprises (SMEs) have been considered as engines of growth. This has indeed been observed from available survey data from the World Bank and other development institutions. Access to finance has been recognized as a major factor affecting the growth and success of SMEs all over the world. Small and medium enterprises (SMEs) financial constraints limit their investment opportunity and stagnant growth. Therefore, a quest to find a solution to this necessitated the establishment of Development Banks which is saddled with the responsibility of making credit available to SMEs. Hence, the main objective of this study is to examine the impact of Development Bank credit financing on the growth of SMEs. A Survey research design was employed, 398 SMEs were randomly selected from the beneficiaries of Development Bank of Nigeria (DBN) loans. Binary logistic regression was employed to test the stated hypothesis. The estimated logistic regression showed that variables such as (HSBC) which is an increase in sales of the MSMEs and support and service training for SMEs before loans impacted positively and significantly on the profitability of the SMEs given their beta coefficients of (β)=0.570, 0.384 respectively. Their level of significance is shown by their respective p-values and Wald statistics of 0.049, 0.099, 3.889, and 2.7240. These show that the variables are barely significant at 10%. However, all the other variables such as the age of the entrepreneur (AGE), gender of the entrepreneur (GENDER), amount of loan received (AOLR), and proportion of loan utilized (POLU) do not have a significant impact on the profit of the entrepreneurs.

Globalization and Performance of Small and Medium Enterprises (SMEs) in Nigeria: An Ex-Post Facto Approach

This study focused on the effects of globalization on SMEs performance in Nigeria. The researcher conducted an ex-post facto research design. The study covered a period of 35 years between 1986-2021. The data collected were analyzed using econometric techniques. The findings revealed that foreign direct investment has positive and significant effect on small and medium enterprises performance. Foreign trade has a positive but insignificant effect on SMEs performance. Due to the value of p-value=0.000. The study concluded that globalization has significant contributions on the performance of SMEs in Nigeria. The study however recommended among others that SMEs should take advantage of globalization to expand their market share through expansion and diversification strategies.

MONETARY POLICY AND SMALL MEDIUM ENTERPRISES (SMEs) PERFORMANCE IN NIGERIA

The Small and Medium Enterprises (SMEs) have been known to play significant roles in promoting economic growth, employment generation and foreign exchange earnings among others, of both developed and developing economies. Monetary policy, on the other hand, actions and strategies employed by a central bank or monetary authority to control and regulate the money supply, interest rates, and credit conditions in an economy. This study therefore, examines how monetary policy affects the performance of SMEs in Nigeria based on the data covering the period from 1981–2020 using the Autoregressive Distributed Lag Model (ARDL). ARDL captures both long-run equilibrium relationships and short-term dynamics, allowing researchers to examine the interplay between variables over time. The study found that monetary policy has not been a potent tool for promoting the performance SMEs in Nigeria

THE IMPACT OF FINANCIAL REPORTING ON INVESTMENT DECISION OF SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA

This paper examined the impact of financial reporting on the investment decisions of small and medium-scale enterprises in Nigeria. The study was carried out to determine the challenges facing small and medium enterprises (SMEs) in adopting effective financial accounting reporting in Nigeria and to ascertain the contribution of poor credit facilities to inadequate accounting records in SMEs in Nigeria. Survey methods and time series data were used, and data were collected with questionnaires and the CBN statistical bulletin. The generated data were analyzed with a simple percentage table. The study found that the challenges facing SMEs in the preparation and presentation of financial reports are inadequate accounting books and records, manpower, the accounting system, and not running their transactions through the banking system. The study recommends, among others, that since keeping proper books of account and preparing financial records can only be done by professional accountants, the two main bodies in Nigeria, ICAN and ANAN, should encourage their members to offer free professional service to SMEs in Nigeria.

Effect of renewable energy development on sustainable development of small and medium enterprises potentials in Nigeria

The effect of renewable energy (RE) development on the sustainable development of SMEs' potential in Nigeria was empirically done to unlock the possibility of deciphering the perennial energy problem in Nigeria. The development of renewable energy (RE) resources and utilization can greatly benefit Small and Medium Enterprises (SMEs) in Nigeria by providing a reliable, sustainable and cost-effective power supply. This is especially important, as many sectors of Nigeria's economy, including SMEs, are highly dependent on the poor power supply that is currently available. Thus, this study specifically examines the effect of RE resources availability, generation, system efficiency and effectiveness, and utilization on SMEs’ sustainable development potential in Nigeria. A survey research design was adopted and a population of 73,081 SMEs across Nigeria was utilized with a sample of 398 SMEs selected using multi-stage sampling techniques. A validated questionnaire was administered to the owners/managers of the selected SMEs, information obtained from the questionnaire was collated, scrutinized, and analyzed using Structural Equation Model (SEM) with the aid of SMART PLS 4 software through the structural model. The findings revealed that RE resources availability, generation, system efficiency and effectiveness, and utilization potentials of SMEs have a positive and significant effect on the potential development of SMEs in Nigeria. The study concluded that RE resources availability, generation, system efficiency and effectiveness, and utilization have significant influence on SMEs’ sustainable development potential in Nigeria. Thus, government, private sectors, and international development partners should focus on providing more resources, knowledge, and support to enable SMEs to access, generate and effectively use renewable energy resources more efficiently.

An assessment of factors determining loan repayment performance of SMEs in Gwarzo Local Government – a review

The main objective of this study is to assess the factors that determines loan repayment performance of Small and Medium Enterprises (SMEs) in Gwarzo L.G.A of Kano state-Nigeria as SMEs are important sector in all economies, be it developed or developing, therefore, their performances affects economic development of any nation. However, there are so many credit facilities for SMEs in Nigeria which are meant to promote their activities. Most of these credits are granted without collateral, as such so many SMEs find it difficult to repay the loan on stipulated time which has effect on repayment performance. This study therefore, reviewed existing literature on the relationship between loan sizes, loan tenure, and interest rate, borrowers` attitude of money and loan repayment among SMEs in Nigeria. Based on the literature reviewed the study concludes that loan size, loan tenure, interest rate and borrower`s attitude of money have significant relationship with loan repayment among SMEs in Gwarzo LGA.. The study recommends that financial institutions should consider, loan size, loan tenure, Interest rate and borrower`s attitudes when giving loan to SMEs.

Do Small and Medium Enterprises Spur Economic Growth? Evidence from Nigeria (1999-2020)

This study investigates if Small and Medium Enterprises (SMEs) contribute to economic growth in Nigeria between 1999 and 2020. The data used for the study were obtained from CBN statistical bulletin and National Bureau of Statistics in collaboration with Small and Medium Enterprises Development Agency of Nigeria on the variables such as the number of SMEs in Nigeria (NSMES), Commercial Banks Credit to SMEs (CBSME), SMEs employment generation (SMEEG) and interest rate (INTRT). Since the data for the variables are time series which are always not stationary, the test of staionarity was conducted using Augmented Dickey-Fuller unit root test. ARDL Bounds test for co-integration was employed to check the long run relationship while Autoregressive Distributed Lag (ARDL) technique was employed to estimate the parameters of the model. From the results of the regression, some variables such as NSMES, CBSME and INTRT have positive impact on the economic growth while SMEEG has negative impact on economic growth in Nigeria in the short run. The result further shows that only NSMES has significant impact on economic growth, while CBSME, SMEEG and INTRT are insignificant. The study therefore, recommends that government should create enabling environments for the SMEs to thrive well. Also, commercial banks should encourage financial inclusion, that is, SMEs should be given easy access to loans. This can go a long way to help investors to bring their ideas into reality.

Information Technology Competence and Innovation in Small and Medium Enterprises

The increasingly competitive environment occasioned by advances in technology, social and economic changes demands that firms embrace innovation as a strategy. Innovation plays a critical role in the survival and growth of any business. International research shows clear evidence of the benefits of adopting innovation practices. For over the years, Nigeria has faced socio-economic hiccups characterized by poor economic performance, slow industry growth, high unemployment rate, increased poverty, poor service delivery by public entities, inter alia. As such, Small and Medium Enterprises (SMEs) are regarded as key players in the economy and their significance is demonstrated by the government’s support through formulation of policies with agencies specifically for SMEs. However, SMEs face difficulties to remain competitive in the market. Information Technology (IT) which plays a pivotal role in innovation, provides SMEs a better chance of surviving in the competitive market of the 21st century. The role of IT is significant, and its competence is considered as a main component in an organization to improve performance. This paper attempts to explicitly connect IT competence and innovation in SMEs in Nigeria.

Social Media Usage and Performance of Small and Medium Enterprises in Nigeria

The 21st century have seen the rise in the use of information and communication technology. This technology had overtime facilitated the growth of social media for ease of socializing and networking. Companies like Amazon, Alibaba among others leverage on e-commerce, integrating social media to provide product and services all over the world. In Nigeria, the likes of Jumia, Konga among others leverage on the social media space to market their product and services along with their website and mobile applications enabled by technology. With the huge number of people adopting the use of social media, it is critical to investigate how social media have impacted financial performance of Small and Medium Enterprises (SMEs) in Nigeria. With the use of ANOVA, Chi-square, the study analyzes responses from 566 respondents based on cleaned data obtained from Research ICT Africa Survey (RIAS) survey data published in 2019. Theoretically, the study is anchored on the social network theory. Evidence suggested that social media have contributed immensely to the growth of SMEs in Nigeria, helped in customer engagement and retention and also facilitate advertisement of goods and services. Evidence also suggested a significant relationship between social media advertisement and financial performance among SMEs in Nigeria.

Social Media Marketing and Small and Medium Enterprises (SMEs) in Nigeria

The role of SMEs in economic development of any nation cannot be overemphasis. This is because of their contributions to their respective country GDP. However, the emergence of social media has provided a paradigm shift in the modus oparandi of SMEs globally. One country that has benefited from this new wave of social media marketing is SMEs in Nigeria. Therefore, this study seeks to examine the imperatives of social media marketing on the growth and development of Small and Medium Enterprises in Nigeria. This study is situated within the Rogers (1995) Innovation Decision Process theory. Data for the study were collected from various secondary sources such as textbooks, journals and internet sources while content analysis was used in analysing the data collected. This study argues that social medium marketing has assisted SMEs in Nigeria in increase connectivity, knowledge sourcing and customer engagement. This study argues that social media has provided a lot of benefits to SMEs in Nigeria. Therefore, for SMEs owners to derive the desired benefits from social media, it will largely depend on how effective and efficient they are in their use of social media platforms. Therefore, this study recommends among other things that if SME owners should leverage on the opportunities provided for SMEs growth and development in Nigeria.

Barriers in Digital Transformation in a Small and Medium Enterprises in Nigeria

Small and medium enterprises (SMEs) face competition in today's digital economy and a marketplace that is constantly changing and dynamic. Therefore, SMEs aspire to achieve a competitive advantage, enhance their organizational performance, and improve their businesses through a digital transformation (DT). Previous research studies still lack a deep knowledge of the barriers in digital transformation in SMEs in a developing country like Nigeria. Therefore, this research aims to determine the barriers that a small and medium company in Nigeria faces regarding DT. The findings of this study revealed twenty-three barriers in DT of which nine are similar to those identified in previous research literature and fourteen are new barriers. The identified barriers in DT can help managers in SMEs in Nigeria as well in other developing countries to understand how to mitigate them and have a successful DT.

Employee Retention Practices and the Performance of Small and Medium Enterprises in Nigeria

In Small and Medium Enterprises (SME) performance discourse, several factors which can improve or hinder their growth and excellence have been identified. However, the focus has been on factors related to business owners’ entrepreneurial competencies or challenges external to SMEs. Employee turnover is a major challenge experienced by SMEs, that has contributed to their abysmal performance. However, the role of employee retention practices in addressing employee turnover and its impact on SME performance has received little exposure in related literature. This research addressed this gap by examining the impact of employee retention practices on the performance of SMEs in Nigeria. Data was sourced through a questionnaire-based survey of 430 respondents and analyzed using Ordinary Least Squares (OLS) and chi-square statistic. The study’s findings revealed that employee retention practices have a significant impact on the performance of SMEs in Nigeria. For these practices to positively impact SME performance, a coherent combination of practices should be implemented. Gaps were identified in training and career development practices within the SMEs surveyed. The importance of business sector-specific factors and employees’ educational qualification to SME performance were also highlighted. The findings also reiterated the importance of non-financial measures in assessing SME performance. It is recommended that SMEs pay attention to employee retention practices to retain valuable employees and improve their overall performance.

Post-Pandemic Sustainable Strategies for Nigerian Small- and Medium-Sized Enterprises

The sustainability of small and medium enterprises (SMEs) has gained much attention from policymakers and scholars in the past decade. Undoubtedly, the emergence and corresponding consequences of the COVID-19 pandemic have ignited much inquisitiveness from researchers regarding the sustainability and viability of small- and medium-sized enterprises. Consequently, this study carried out an empirical exploration of feasible strategies that can be utilized and employed by SMEs in Nigeria in the post-COVID-19 endemic era. In the course of the study, four SME sustainable strategies were developed from the analysis conducted thematically, namely cost-minimization measures, mastering customer relationship dynamics, creativity and innovation, new-culture embrace and collaborative strategies. The findings derived from the study are expected to be of great assistance to practitioners and policymakers in making thorough and comprehensive decisions that are related to the sustainability of SMEs in Nigeria anchored on empirical evidence.

Impact of Government Sustainable Development Programs during COVID-19: A Study of SMEs in Nigeria

This study investigates the impact of government sustainable programs on the growth of small and medium enterprises (SMEs) in Nigeria amidst the COVID-19 pandemic. It employs a survey methodology to study the developmental factors of SMEs in Nigeria. The study population consisted of 580 registered SMEs in the Wuse business district in Abuja, with a sample size of 130 respondents. Questionnaires were distributed to the above respondents, out of which 100 fully submitted their responses. To achieve the objectives of the current study, hypotheses were tested and analyzed by using a multiple linear regression model. The findings revealed that survival funds have a considerable influence on the growth and sustainability of SMEs in Nigeria. It was also discovered that free business name registration has a major influence on the growth of SMEs. Moreover, it was found that government incentives are significant to maintain the sustainability of SMEs. Furthermore, the study concluded that SMEs performed effectively well with the aid of government sustainable programs. These intervention programs take the form of an intervention strategy which is an essential part of the current study’s objectives. These include survival funds, free business registration, and government incentives. The current research provides a significant knowledge of structured progressive programs for the policymakers and aids future planning.
 Keywords: government sustainable programs, intervention programs, small and medium enterprises (SMEs), survival funds, sustainability

Prospects and Challenges of Lean Manufacturing Deployment within Manufacturing SMEs in Nigeria: A Literature Review

Small and medium enterprises (SMEs) played a vital role in manufacturing goods for consumer and industrial purposes, making them instrumental in business growth and economic development. However, issues of poor quality and substandard products prevail due to limited technical knowledge that hindered them from competing locally and globally in Nigeria—arising from the lack of lean manufacturing deployment and implementation. Therefore, the study aims to provide an insight into the prospect and challenges of manufacturing SMEs in Nigeria as it relates to the deployment of lean manufacturing tools and techniques. The study would aid manufacturing SMEs in better comprehending their potentials and problems, hence, deploying lean manufacturing initiatives successfully. The study applied a literature review approach through past empirical and conceptual studies from reputable journals and reports. Based on the available literature, the study finds that though manufacturing SMEs in Nigeria are faced with numerous issues, e.g., poor leadership, lack of qualified personnel, and inadequate funds , they have shown higher prospects of deploying lean manufacturing successfully. The study concludes that manufacturing SMEs should bank on potentials like flexible organizational culture and structure, easy access to customers and suppliers, and flexible manufacturing system to deploy lean manufacturing, which will further aid in waste elimination, value addition, customer satisfaction, and enhanced performance. The study serves as the foundation for further empirical research on issues related to lean manufacturing deployment within SMEs, thereby proffering solutions to the quality challenges they are facing.

Impact of Small and Medium Scale Enterprises on Economic Development of Nigeria

Nigeria has made it one of its primary goals in recent decades to develop its industrial base through the formation, maintenance and expansion of small and medium scale enterprises in order to achieve economic development. Fiscal incentives, grants, support and aid from bilateral and international agencies, as well as specialized institutions, have all been used to help the SME sector thrive. However, SMEs in Nigeria have not performed creditably and so have not played the crucial and lively role that they should have in the country's economic growth and development. As a result, the government, citizens, operators, practitioners, and organized private sector groups have all expressed concern about the situation. Using time series data set from 1991 to 2020, this study utilized the Fully Modified Ordinary Least Squares (FMOLS) to analyze the impact of small and medium enterprises (SMEs) on the development of the Nigerian economy. The study found a long-run relationship between small and medium scale enterprise and economic development in Nigeria. Our findings also indicate a unidirectional relationship from gross domestic product to commercial bank loans to SMEs. However, there is no causal relationship between inflation and gross domestic product; interest rate and gross domestic product, while none of the economic growth indicators report a bi-causal relationship. The study hereby recommends that government should assist prospective entrepreneurs to have access to finance and necessary information relating to business opportunities to enable them to reduce their operating costs and be more efficient to meet the market competitions.

Exploring the impact of tax policies on small and medium scale enterprises’ (SMEs) performance in Nigerian Economy

Small and Medium Enterprises (SMEs) are very significant to the economic growth of many societies and countries at large. Contrastingly, SMEs have been contributing little to Nigeria Gross Domestic Products (GDP). This study aimed at exploring the effects of tax policies on the performance of SMEs. The Unicist Theory of business growth was used to underpin the study, the theory analysed the implications that multiple tax could have on the growth of SMEs in Nigeria. Survey method with close ended structured questionnaire was administered to 110 SMEs owners in three local government areas in Lagos State. Collected data were analyzed with descriptive statistics while formulated hypothesis was tested with Chi square method. Findings revealed that various Governmental policies on taxes significantly affect the performance of SMEs in Lagos State. The paper implicates a possible diversity for tax policies that will favour SMEs operator to make meaningful contributions to the economy. The study therefore recommends among other things that Government should design and implement the most effective ways of administering various tax policies that can enhance the growth of SMEs, while tax collection should be well defined to avoid multiple taxations by the three tiers of government. The study also recommends that taxes should be levied according to the growth of the business; sales, size and profit; with consideration to enterprises’ ability to pay taxes regularly.