Small Businesses In Nigeria Research Articles

Strategic Networking: A Re-Engineering Approach for Sustainable Growth of Small Businesses in Nigeria

Strategic Networking: A Re-Engineering Approach for Sustainable Growth of Small Businesses in Nigeria

Social Media and Sales Performance of Clothing Small Businesses in Nigeria

In Nigeria, small businesses are increasingly turning to social media as an approach for marketing and boosting their sales due largely to its wide reach and cost-effectiveness. The clothing industry is no exception, as small clothing businesses in Nigeria have begun to leverage social media to reach a wider audience and increase sales performance. Apparently, despite the huge potential of social media platforms available to prospective small businesses in Nigeria, existing and prospective small business owners still struggle to utilise these platforms to improve sales performance in the country. The paper examined the level of contributions of social media on small businesses' sales performance vis-a-vis customers purchasing behaviour. Also, it explored inherent challenges clothing businesses encountered on social media platforms for improved sales performance. The study was centred on descriptive research design through a qualitative approach, which relied on interviews. For the study, a purposive sampling technique was used to select 18 participants in the clothing business (shoes, fashion clothes, hairdressing and fashion accessories and hairdressing). By implication, social media usage has a multiplier effect on small businesses vis-à-vis the economic transformation of Nigeria if harnessed in line with the function framework. The study concluded that there is an apt need for small clothing businesses in Nigeria to grasp the trajectories and dynamics of social media and engage in effective and sustainable strategies to leverage social media for optimum benefit.

Qualitative Analysis of Social Media Influencers Impact On Sustainable Brand Equity: A Case Study of Small Businesses in Nigeria

This study investigates the impact of social media influencers (SMIs) on small business brand equity in Nigeria. With the country facing significant economic challenges and a growing unemployment rate, small businesses have become increasingly important for job creation and economic development. However, many small businesses struggle to establish their brand in a highly competitive market. The rise of social media influencers has opened new opportunities for small businesses to enhance their brand equity through innovative marketing strategies. The research employed an inductive approach, utilizing qualitative data collection methods through semi-structured interviews. A total of six small business owners who have engaged SMIs for promotional campaigns were interviewed. Findings from the study revealed that SMIs can have a significant positive impact on small business brand equity in Nigeria. They can increase brand awareness, improve brand associations, and foster brand loyalty. However, the study also identified challenges, such as influencer selection, budget constraints, and the authenticity of influencer endorsements. The research provides valuable insights for small businesses seeking to leverage SMIs in their marketing efforts, as well as recommendations for improving the effectiveness of such campaigns. The findings contribute to the growing body of knowledge on influencer marketing and have practical implications for small business owners, marketers, and policymakers in Nigeria. Keywords: Qualitative Analysis, Social Media, Influencers, Brand Equity, Businesses in Nigeria Proceedings Citation Format Obahiagbon, Ebiuwa Gladys, Nwankwo, Nkechi & Olaniyi, Titus (2023): Qualitative Analysis of Social Media Influencers Impact On Sustainable Brand Equity: A Case Study of Small Businesses in Nigeria. Proceedings of the 37th iSTEAMS Multidisciplinary Cross-Border Conference. 30th October – 1st November, 2023. Academic City University College, Accra, Ghana. Pp 69-82. dx.doi.org/10.22624/AIMS/ACCRACROSSBORDER2023V2P6

Digital Skills Required for the Sustainability of Small-Scale Businesses in Nigeria

The study examines the digital skills required for the sustainability of small-scale businesses in Nigeria. To accomplish the goal of the study, two research questions and corresponding null hypotheses were developed to direct the investigation. Data were gathered using a researcher-designed instrument called the "Digital Skills Required for the Sustainability of Small-Scale Business Questionnaire (DSRSSSBQ)”. A survey research strategy was chosen for the study. Thirty-five (35) registered small businesses in total provided feedback on the instrument. The study's statistical methods included descriptive statistics and an independent t-test. The results of this study showed that the sustainability of small businesses in Nigeria greatly depends on having the necessary content marketing skills (CMS) and mobile phone marketing skills (MPMS). According to the research, among other recommendations, it was advised that owners of small enterprises adopt the use of digital marketing skills to improve the sustainability of their business’s operations, particularly in the 21st century's electronic age.
 
 Received: 27 August 2023 / Accepted: 2 October 2023 / Published: 5 November 2023

How Important is Microfinance to Small Business Development? the Case of Nigeria

Small businesses play a significant role in national development all around the globe. This is explained by the significant amount of employment they generate and the goods and service they render. As such, there financing is of utmost importance. Academics and practitioners have begun to question the implication of microfinance on small business development. An observable sample for this study is the Nigerian economy. The Nigerian government created microfinance banks in 1992 as a community scheme to act as mechanisms for financing sources for diverse small businesses because of the prominence given to this crucial industry. This study therefore investigated empirically if microfinance banks have had the intended effect on small business development. Utilizing secondary data obtained from the Central bank of Nigeria statistical bulletin over the course of the years 1992 to 2021 in Nigeria, the study employed analytical techniques like the unit root test, cointegration, and error correction model in conjunction with other diagnostic tests. The study concludes that microfinance positively and significantly relates with the growth of small businesses in Nigeria, while interest rate had a negative and insignificant influence on small businesses in Nigeria. The study recommends that, microfinance banks should encourage its appropriation of local borrowing in order to increase the country's productive supremacy and remove negative bottlenecks of low-income earners accessing the loan. The interest rate of these loans are exorbitant and needs to be reduced significantly to enable small businesses survive and ensure easy repayment of microcredits.

NIGERIA CURRENCY REDESIGN AND ITS ANTICIPATED EFFECTS ON THE NATION’S SMALL BUSINESS DEVELOPMENT

Nigeria is one country that embarked on strategies to improve its financial policies and in the run, anticipated to grow the economy of the Nation. One of these policies was the recent 2022 redesign of the Nation’s currency in (₦200, ₦500, ₦1000 notes), launched on Wednesday, November 22, 2022. However, the small businesses in Nigeria viewed this policy with much mixed feelings, Reviewed literature was carried out. Small businesses developmental positions much more depended on the form of money in circulation, its acceptability, availability and how it was managed by the monetary authorities. The study adopted the descriptive survey design with a population of 2,850,900, adopted Yamane formula to arrive at a sample size of 400. Simple random sampling method was used for the selection of respondents with a distribution of 740 copies of questionnaire, self-administered and 620 responded and retrieved from small businesses. The source of data was primary. A five-point Likert-scale nature of questionnaire was adopted, validated by four distinguished lecturers. The method of data analysis was by linear regression. Findings showed that small businesses developmental planning would negatively be affected for they were not consulted for ideas at the initial point of conception of the process of currency redesign, during the redesign process and final launched of the currency hence small businesses were at serious risk of losing their developments’ planning initiative results. Also, small businesses would seriously lose their customers base astronomically having serious money exchange challenge with their individual and collective customers because of the very short period given by the Central Bank of Nigeria (CBN) for the fading out of the old currency designed to the new currency redesigned. In conclusion, it must be said that the Central Bank of Nigeria could have a better intention on the redesign of the currency. More so, the approach to its public engagements and public notifications were graced with mixed feelings. Recommended are that the Central Bank of Nigeria should quickly consult small businesses in all the processes on the redesign of the currency to help these small businesses in their developmental planning. Also, the Central Bank of Nigeria should give longer period for the fading out of the old currency designed to the new currency redesigned so that small businesses would not seriously lose their customers’ base astronomically.

Between the Private Company and the LLP: Deciphering a Path for Small Businesses in Nigeria

This article questions whether the limited liability partnership form which was introduced in Nigeria in 2020 is set to displace the private company as the legal form of choice for small businesses and owner-managed entities. It compares the legal provisions relating to the private company and the limited liability partnership as provided for under the Companies and Allied Matters Act 2020, and highlights their relative strengths and weaknesses. It notes that while the attractions of the limited liability partnership are significant, recent reforms of the private company may have also positioned that form to be relevant and equally appealing to small businesses. It concludes that while the limited liability partnership will be highly appealing to professional partnerships in Nigeria, the private company would continue to remain relevant for some time to come particularly as it is now possible for sole proprietors to trade under that form as one-man companies.

The Entrepreneur and His Small Business: Is Financial Literacy Important?

The most appropriate survival strategy for small businesses is to pursue the growth objective. Our study seeks to investigate the presence or otherwise of a relationship between financial literacy and small business growth. Our findings reveal that entrepreneurs with a high level of financial literacy are more likely to succeed at growing their businesses when compared to entrepreneurs with a lower level of financial literacy. Hence, financial knowledge, financial behaviour and financial attitude are important assets for growing small businesses. We recommend a concentration of efforts on the human capital development of entrepreneurs to ensure the survival and growth of small businesses in Nigeria.

Влияние Covid-19 на управленческую деятельность малых и средних предприятий Нигерии: качественная оценка воздействия

Introduction. The influence of Covid-19 is yet to be measured across many economies of the world, as many countries are still grappling with the effects of different variants of the virus within its economy. However, within Nigeria, life is mostly returning back to normal with all restrictions removed and businesses seeking to get back to pre-pandemic activity levels. Theoretical analysis. Researchers within the business sector in Nigeria have now begun conducting an impact assessment of the pandemic on businesses that were active during the pandemic, in order to understand how these firms’ attained resilience, the problems they faced and how the lessons learned can be curated for management consulting. Methodology. The paper reflected a qualitative enquiry into the impact of Covid-19 on selected small businesses in the business and financial hub of Nigeria. Using data obtained from ten businesses and five business experts in Lagos, Nigeria, this paper outlined the key themes of how the pandemic impacted the business of small and medium sized enterprises (SMEs) in Nigeria. The study adopted a qualitative, semi-structured interview tool for data collection, convenience sampling and thematic analysis as the approach to data analysis. The data was presented across themes and using figures/tables. Results. The paper presented three main themes of impact within these small businesses, namely structural, strategic and financial impacts. These three themes form the main areas where the businesses were affected and the paper explores the themes on a macro and micro level, presenting both the positive and negative impact that the pandemic had on businesses. The results cover small businesses in Nigeria mainly, but the findings can be applied to other contexts within Africa or developing nations with similar political and economic environments such as Nigeria. The study found that financial impact was the most critical and common issue presented by small businesses to have affected their businesses, especially the issues of income loss and HR related costs. Under the structural impact, business closures due to lockdowns were a prominent issue that arose, with the closure impacting firms selling physical products and tourism-focused businesses mostly. Logistical issues were also a critical structural challenge raised, with the impact of reverse logistics being something that negatively impacted a lot of businesses. Сonclusion. It was mentioned in terms of strategic impacts, the lack of government support in terms of policy was a critical issue highlighted amidst a myriad of learning points that will be crucial for future policy and strategizing for SMEs.

Enhancement of Small-Scale Businesses in Post-COVID era through Cooperatives in Nigeria

Small-scale businesses are the mainstay of the Nigerian economy and the Covid-19 pandemic that is ravaging the world did not leave this sector untouched. As a result of the devastating effect of measures adopted in curbing the spread of the virus, many small businesses appear to be grappling to find their bearing. Hence, this paper examined the enhancement of small-scale businesses in the Post-Covid-19 era through cooperatives in Nigeria and seeks to establish that cooperatives remain the only essentialist and mutual option for small-scale businesses to remain relevant in a turbulent environment. The ex-post factor study revealed that many small businesses in Nigeria were badly hit by the pandemic and emerging from the aftermath of the virus has not been easy. The paper also indicated that institutional formations like cooperative societies can only help to salvage the plight of small business owners and equally has the capacity to revamp the sector. The paper concluded that the support small businesses might need to revive their business lie within cooperatives and only active involvement can enable proof. The paper, therefore, recommended among others that small business owners should endeavour to join or form cooperative societies and be active in the patronage of cooperatives services. This is because cooperative societies have been proven to have the capacity to empower and revive dying businesses. The government should be made to understand the capacity of cooperatives in economic development and adequately partner with them in incorporating small businesses into cooperative societies.

The COVID-19 and Its Effect on Small Businesses in Nigeria: A Rational Choice Theory and an Empirical Approach

The misery and difficulties of the novel deadly infection (COVID-19) are of great concern to analysts, researchers, policymakers, and government agencies over the globe. This investigation examines the effect of the deadly infection (COVID-19) on small businesses in Nigeria, with particular reference to Lagos State. A purposive examining procedure was utilized to choose each of the 321 small businesses owner of Nigeria (ASBON) enlisted in the Lagos Business Directory. Close-ended questionnaires were used to gather data from the members. The data analysis was performed with percentage, mean, chi-square, and component factor analysis. The outcome uncovers that the deadly infection (COVID-19) has injured all the SMEs surveyed. It was discovered that most small businesses are doomed as a result of the negative impact of COVID-19. The assessment using rational choice theory derives that credit accessibility, tax waiver for sectors, the introduction of emergency advances, and flexibility of repayments of existing loans by financial institutions are solid palliative measures that can cushion the effect of the deadly infection (COVID-19).

Can critical success factors of small businesses in emerging markets advance UN Sustainable Development Goals?

PurposeThis study contributes to answering the question, can critical success factors of small businesses in emerging markets advance United Nation (UN) Sustainable Development Goals (SDGs)? Specifically, this study aims to explore the critical factors contributing to the success of small businesses and ultimately the UN SDGs in the emerging market of Nigeria.Design/methodology/approachThe design is survey research testing the Lussier success vs failure prediction model for small businesses in Nigeria. The methodology includes a logistic regression model to better understand and predict the factors that contribute to success or failure using a data set of 201 small businesses in Nigeria.FindingsThe findings support the validity of the Lussier model (p = 0.000) in Nigeria as the model accurately predicted 84.4% of the small businesses as successful or failed with a high R-square value (R = 0.540). The most significant factors (t-values < 0.05) that predict the success or failure of businesses support the findings that business owners that start with adequate capital, keep records and financial controls, use professional advice, have better product/service timing, and have parents who own businesses can increase the probability of success.Practical implicationsThe study provides a list of critical success factors contributing to the growth of small business in Nigeria, the largest economy in Africa. The findings can help entrepreneurs avoid failure and advance UN SDGs 1, 2, 8 and 10. Implications for current and future entrepreneurs, public agencies, consultants, educators, policymakers, suppliers and investors are discussed.Originality/valueThis is the first study to determine the factors that contribute to the success or failure of small businesses in Nigeria using the Lussier model. It also discusses how to advance four of the UN sustainability goals. Results support the Lussier model's global validity that can be used in both emerging and developed markets, and it contributes to the development of theory.

Relevance of Innovation on Survival of Women-owned Business in Nigeria

The paradigm shift of women involvement in entrepreneurial activities in developing countries has been a source of concern to organizational psychologies and researchers. Women owned businesses form a larger percentage of small businesses in Nigeria in recent times but the continuity and survival of such enterprises posed serious challenge. Most women owned businesses hardly survive beyond few years of incorporation. Thus, this paper examined the influence of innovation on the survival of women owned businesses. Specific objectives are to; determine the effect of product/service innovation on the market share; and examine the effect of process innovation on business reputation. A survey research design was adopted. Multi-stage sampling was employed in deriving the sample size. Structured questionnaire was used to elicit information from the women business owners in Ilorin, Kwara State, Nigeria. Regression analysis was used to analyze the data and it was found that; product/services innovation has effect on the market share with R2 value of 0.541 and process innovation influences business reputation with R2 value of 0.517. Hence, it was concluded that innovative behaviour has significant effect on the survival of women owned business since all of the variables used in the study are statistically significant. It was therefore recommended among others that innovative behaviour is required by entrepreneurs so has to be able to adapt, grow and survive in their dynamic business environment.

Achieving Sustainable Development in Business Productivity in Nigeria: An Equity Financing Model Approach

Equity financing is one of the sources of funding available to non-bank financial institutions which is quite prevalent in developed financial markets for small or start-up firms. This study empirically determined the effect of the Equity Financing Scheme on a sustainable increase in productivity of agro-allied small businesses in Nigeria. Data for this study were elicited through the use of a questionnaire structured in a five-point likert scale. The evaluation of the relationship between the dependent and independent variables was performed using the Ordinary Least Square regression technique. The study revealed that the equity financing scheme had a positive and significant effect on the sustainable productivity of agro-allied small businesses in South-South Nigeria. The study recommended that efforts should be made to educate the small business entrepreneurs on the benefits of equity financing as a viable option towards business growth and expansion and that the government through the various intervention agencies should restructure the long-term loan policies to give access to more growth-oriented agro-allied businesses, to increase their presently low capacity to procure heavy-duty technology to increase productivity and achieve food security in Nigeria. Small business owners should take advantage of the membership of cooperative societies and as well maintain good business relationships with suppliers; this will guarantee a continuous supply of needed materials and uninterrupted operations of the business.

Modelling Human Capital Resource Mobilisation Practices for Sustaining Business Productivity among Small Businesses in Nigeria

Human capital has long been argued as a critical resource in most companies for sustaining development of business productivity. The study empirically determined the effect of human capital resource capacity on sustainable increase in productivity of agro-allied small businesses in Nigeria. The instrumentality of this study is the research questions structured in a five-point likert scale. The Linear Regression Analysis used to test the hypotheses. Statistical Packages for Social Sciences (SPSS) was used to aid the data analysis. The study discovered that human capital has positive and significant effect on sustainable increase in productivity of agro-allied small businesses in Nigeria. The study recommended education the small business entrepreneurs on the benefits of equity financing as a viable option towards business growth and expansion.

Employee Fidelity and the Survival of Micro and Small Scale Businesses in Nigeria

Abstract This research examines the impact of employee fidelity on the survival of micro and small scale enterprises in Nigeria. The mortality rate of small businesses in Nigeria is alarming. Most previous studies tend to concentrate on the managerial, technical, educational and even capital deficiencies of the entrepreneurs but this study focuses on the employees. Multi-stage sampling technique was used to identify suitable candidates for the study and discriminant function analysis was used for data analysis. Findings reveal that capital inadequacy and employee theft account for the failure small businesses in Nigeria. The study is significant to entrepreneurs to avert failure and for further research by academics.

The Impact of Working Capital Management on Profitability: Evidence from Selected Small Businesses in Nigeria

The Impact of Working Capital Management on Profitability: Evidence from Selected Small Businesses in Nigeria

Influence of Entrepreneurial Traits on the Performance of Small and Medium Sized Enterprises (SMEs) in Lagos State, Nigeria

Factors such as political instability, government policies, infrastructural inadequacy and entrepreneurs’ non-possession of relevant personal characteristics are connected on the high failure rate of small businesses in Nigeria. On the back of these identified problems the study focused on Influence of entrepreneurial traits on the performance of Small and Medium Sized Enterprises in Lagos State., Specifically, resilience, innovativeness, drive for achievement, and risk taking propensity were the entrepreneurship traits examined in relation to the performance of SMEs in Lagos state. Primary source of data through a questionnaire was used to achieve the stated objectives. Random sampling method was used to collate data of 125 entrepreneurs who participated in the study. Frequency tables and percentages were used for data presentation and the Regression analysis was used to test the formulated hypotheses, with the aid of statistical package for social sciences (version 21.0). The study summarised that there are significant relationships between the tested traits and the growth of SMEs in Nigeria. The study recommended that owner/ entrepreneurs should individually improve their skills in these critical traits’ areas. In addition, the government should provide institutional support in terms of training and development. Government should also create an enabling environment for business to thrive, through provision of infrastructures.

Causality of Fiscal Policies and Per Capita Income Development: Evidence from the Nigerian Economy

The growing dependency among the working population of Nigerians and basic infrastructures decay despite the upward budgetary allocation initiated to this study. The purpose of this study is to examine the response of Nigerians welfare to budgetary increase. The study, therefore, measures the causality of selected Fiscal policies- Government Capital Expenditure (GCX) and Government Recurrent Expenditure (GRX), and its prevailing development on per capita income (PCI) development in the Nigerian economy. The study employed data sourced from the Central Bank of Nigeria over the period 1981-2016. The Augmented Dickey-Fuller (ADF) and Granger Causality tests were applied. The results of the ADF test shown are stationary at first levels differenced. The results of the Granger Causality test indicate government recurrent expenditure (GRX) significantly promotes per capita income (PCI). The study concludes that GRX constitutes a significant variables policy that predicts per capita income development. The study recommends that the Federal Ministry of finance provide employment and business credits assistance to reduce the level of the unemployment rate. Recurrent expenditures like wages and salaries as well as transfer payments should be prompt to help invigorate small businesses in Nigeria.

Crowdfunding: An Alternative to Funding Women Entrepreneurs

Traditionally, Small businesses in Nigeria find it particularly difficult to fund their operations from formal sources. The situation becomes more challenging when women are involved because of cultural bias. Credit is rarely made available to women as many perceive a business run by women a big risk. Several government credit intervention programmes in the past were initiated but the problem of financing remained unsolved. Similar businesses in more developed economies are turning to innovative financing known as crowdfunding. The need to explore such a financing mechanism in Nigeria is the aim of this study. We employed a cross-sectional and retrospective mixed-methods approach, utilizing both quantitative and qualitative data. Findings from this study show that gender was not significant for understanding crowdfunding as a means of raising money from the public over the internet. This finding is very revealing as it shows that cultural barrier faced by women in accessing credit from traditional lenders will be solved by crowdfunding.