Marketing problems and the performance of selected small and medium enterprises smes in southern senatorial district of cross river state, nigeria ebitu, ezekiel tom, phd ufot, juliet alfred department of marketing faculty of management sciences university of calabar nigeria olom, patricia akwaya department of vocational education. A descriptive analysis okwu andy titus1, bakare, ganiyu biodun2 and obiwuru, timothy chidi3 abstract job creation and employment generation are among the core relevance of small and medium enterprises smes in any economy. Competitive advantage and its impact article pdf available august 2014 with 10,492 reads how we measure reads. This study examined the level of tax compliance among owners of small and medium enterprises smes in nigeria. Nigeria sme survey assessing current market conditions and business growth prospects the first in a series of surveys that provide insights into a range of issues concerning smes in nigeria, and the challenges impacting business growth, particularly financing, taxation issues. They account for about half of global gross domestic product gdp and 60%70% of employment. Issues of ict adoption amongst smes in nigeria article pdf available in international journal of management practice 61. Although precise, uptodate data are difficult to obtain, estimates suggest that more than 95% of enterprises across the world are smes, accounting for approximately 60% of private sector employment ayyagari et al. A shift towards high and persistent growth in subsaharan africa moving to higher growth, smes get to play a pivotal role, supporting service demand and needs for specialization participation in the formal economy is a. Stimulating, monitoring and coordinating the development of the msmes subsector. Promoting small and medium enterprises in the nigerian oil and gas industry joseph e. Overview of nigerias human capital development performance and ranking1 rank 0. Entrepreneurship and economic development in nigeria.
The big picture 6 smes in the global economy 7 impact of the financial crisis 12 policy responses to the financial crisis and sme needs 16 the internationalisation of smes 19. The mandate of smedan as contained in the enabling act can be summarized as follows. Government policy and performance of small and medium. However, existing literature on the smes financing and economic development provide a contrasting results. The key issues affecting the smes in nigeria can be grouped into four namely. Scribd is the worlds largest social reading and publishing site.
Smes and the factors responsible for the survival or failure. Pdf abstract small and medium enterprises act as catalysts in the economic. Using a case study approach, both theoretical and empirical data were. Obafemi awolowo university, ileife, osun state, nigeria abstract this study analyzed the growth in investment of micro and small scale enterprises intermediated by the informal credit market in nigeria. List of smes companies and services in lagos nigeria. Primary data for this study were collected from 10 ten local government areas of oyo state, nigeria using a multistage sampling technique. There is also the problem of identifying and ranking factors most valuable for the survival of the smes in nigeria, the ability to determine this will help. Evaluation of survival strategies of small and medium. Small and medium enterprises smes in nigeria has not performed very well. According to mwarari and ngugi 20, smes in kenya are responsible for about 80% of employment and contribute about 40% to gdp.
Sumerianz journal of business management and marketing. Importance of small and medium enterprises in nigeria. In many developing countries, small and mediumsized enterprises smes play an important role in development. Small and medium scale enterprises smes and nigeria s economic development article pdf available in mediterranean journal of social sciences 57.
Oguguo1 1department of marketing, imo state polytechnic, umuagwo abstract this paper, utilizing the narrative textual case study approach sought to ascertain the. First, it provides a mapping of growth patterns in subsaharan africa over the last. The effect of international business on smes growth in nigeria. Smes to the manufacturing output and total export in nigeria evidence has shown that smes in nigeria have underperformed and have not made significant contribution to the nations economic growth and development. Algeria, business climate, business environment, external factors, growth, internal factors, small and mediumsized enterprises smes 1. Among business economists, this lack of focus has been named the missing middle. To find out whether smes have helped to solve the problem of unemployment. Smes 7 banji oyelaranoyeyinka fss 2020 where we are. Whether they deal in services or manufacturing, exporting smes show higher total revenues, faster total revenue growth, and higher labor productivity than their nonexporting sme counterparts. However the corruption case in nigeria is very alarming and this affects the operations of smes one way or the other dike, 2005. Financing smes which constitute over 50% of business in nigeria could be a critical role towards achieving sustainable economic growth and development. In towns and cities, these businesses employ large percentage of the population. Nigeria has privatized its distribution companies, so there is a wide range of tariffs. This national micro, small and medium enterprises policy is our concerted response to the challenge of developing the subsector of the nigerian economy in a structured and efficient manner.
It identifies the roles of smes in nigeria s development and growth. Adebisi olumodumu, said the capacity building of mdas is inevitable if the federal government would play its role of supporting smes to grow. They have contributed just a small percentage of the gdp unlike the other emerging economies in the world. Oisamoje, phd benson idahosa university, benin city, nigeria abstract small and medium scale enterprises smes are generally acknowledged as having huge. The study established that in all economies underdeveloped, developing and developed smes are in the forefront of job creation, wealth creation, innovation and poverty alleviation. Finding of the study indicated that smes in south eastern nigeria utilize e commerce and einvoicing marketing.
The aim of this study is to examine the level of small and medium enterprises smes business ownersmanagers financial literacy and its impact on firms performance. Smes contribute half of nigerias gdp vanguard news. Smes, by number, dominate the world business stage. Smedan small and medium enterprises development agency of. The importance of micro, small and medium enterprises msmes in employment. However, despite government efforts in nigeria to promote smes, not much. Smedan small and medium enterprises development agency. It identifies the roles of smes in nigerias development and growth. It is noteworthy that most of the small businesses in nigeria are sole proprietorship and partnerships. Japan has the highest proportion of smes among the industrialised.
Essentially, the report contains a discussion of three closely related subjects. They contribute to a large part of output, employment, and growth. According to the report, smes make up the overwhelming majority of private business concerns in nigeria, which is in the excess of 17 million registered enterprises. The inability of the government to make policies and implement them is a major constraints of smes in nigeria, and the end result of this is that it discourages investment. It investigates the effects and challenges of mfis on the development of smes in rural ghana. Introduction the securities and exchange commission sec on 15th august 2016 released a statement through its director general essentially stating that any crowd funding activities in. Business environment, job creation and employment capacities. Small and medium sized businesses across africa face many and varied challenges to their growth and operations. It examines the financing of smes in nigeria and the various financing options available to. Evaluation of survival strategies of small and medium enterprises in benue state, nigeria justin iorakpen iorun department of accounting, faculty of management sciences, benue state university, makurdi, email. Nigeria is endowed with large oil, gas, hydro and solar resource, and it already has the potential to generate 12,522 megawatts mw of electric power from existing plants, but most days is only able to generate around 4,000 mw, which is insufficient. Financing options for small and medium enterprises smes in. Apr 17, 2018 small and medium enterprises smes in nigeria has not performed very well.
This study focused on the investigation of the financing constraints of small and medium enterprises in south western nigeria. World bank, 20, nigeria economic report, viewed 17 february 2014, from. The finding revealed that trade openness as a measure of competitiveness and fdi has no significant effect on smes growth in nigeria. Pdf measuring tax compliance among small and medium. This paper focuses on the manufacturing smes in nigeria and the programs designed by the nigerian government for the development of smes. The challenges of small and medium enterprises smes in nigeria. Small and mediumsized enterprises smes are the cornerstone of most economies. The effect of international business on smes growth in nigeria oladimeji moruff sanjo, muhammed olaniyi ibrahim abstract the research examined the effect of international business on smes growth in a competitive environment, particularly nigeria. Issues, challenges and prospects of small and medium scale. Adebisi olumodumu, said the capacity building of mdas is inevitable if the federal government would play its role of. The encounters of established economies, in regard to the roles smes have played support the fact that the connectedness of smes cannot be overstated particularly among emerging countries.
To establish the relationship that exists between commercial banks loan and the performance of smes in enugu state. Smes, oil and gas, nogic act, nigerian content introduction small and medium scale enterprises smes have been recognised as indispensable. To establish the relationship that exists between the performance of smes and economic development in nigeria. Successful business people in nigeria like the aliko dangotes, the ibrus, mike adenuga, the orji kalu etc. It was further stated that the acceptance of change, access to fund and adequate information technology in business environment will drive the growth of small medium firms in the country. Yet, the vast majority of developed and developing countries rely on dynamism, resourcefulness and risk tasking of small and medium enterprises to trigger and sustain process of economic growth. They examined the financing of smes in nigeria and the various financing options available to the smes, which involved looking at debt financing by considering the role commercial, microfinance banks, cooperatives and other finance institutions play in the financing of smes in nigeria.
The challenges of small and medium enterprises smes in. The secondary data were gathered from the nigerian bureau. They have contributed just a small percentage of the gdp. Appropriate office space appropriate support services. Small and medium scale enterprises smes and nigerias. Marketing problems and the performance of selected small and. This report highlights the role that small and medium sized enterprises smes play for growth and development in subsaharan africa. Also to study its objectives, challenges, problems and constrains militating against the small and medium enterprises smes in nigeria and find a way to solving it having in mind that the main beneficiary of this project is the masses of this country and the investors, though government will also benefit from it through tax etc. Establishing the factors affecting the growth of small and. Cost of implementation as defined by folunsho et al. A critical development planning perspective franklins a. Akpotu2 1department of political science, delta state university, abraka, nigeria. Nigerian content policy in the oil and gas industry. The study also established that the challenges facing them transcend international boundaries but.
Read all the latest news, breaking stories, top headlines, opinion, pictures and videos about smes from nigeria and the world on today. Incubation projects are designed to address the following challenges, which are particularly acute for ict enterprises. A number of studies investigated smes growth nexus from different perspectives, for example using the descriptive. Smes need to adopt and utilise change to promote the growth of their business. The challenges being faced by our own smes are very many. For example, in the republic of korea, smes currently account for about 99% of all enterprises, 88% of employment, and almost half of total outputs and exports. Marketing problems and the performance of selected small. Nigeria is the largest economy in subsaharan africa, but limitations in the power sector constrain growth. Sme managers and financial literacy anthony abiodun. Aigboduwa, phd nigerian westminster dredging and marine ltd. Governments in developing countries, especially in nigeria, provide a wide variety of programs to develop and assist smes. Amissah, phd department of business administration, wellspring university, benin city, nigeria abstract small and medium enterprises act as catalysts in the economic. Financial system strategy 2020 central bank of nigeria. This report uses itc data on small and mediumsized enterprise sme competitiveness at macro, meso and microlevel to derisk investment decisions.
Many unemployed people and youth have found employment in small scale industries. According to kadiri 2012 cited in peterise 2003, smes both in the formal and informal sectors employ over 60% of the labor force in nigeria. Gbandi, phd department of business administration, benson idahosa university, benin city, nigeria g. They argued that these statistics demonstrate that smes are an integral part of the economy, critical in spurring socioeconomic development in kenya. Smes news latest breaking stories and top headlines today. Cletus izunwanne emeti abstract the paper discussed issues, challenges and prospects of small and medium scale enterprises smes in portharcourtcity, nigeria. Smes 3 banji oyelaranoyeyinka fss 2020 smes in nigeria smesare broadly defined 1 as businesses with turnover of less than n100 mm per annum and or less than 300 employees studies by the ifc show that approx. Introduction algeria is a developing country characterized by a minimally diversified economic structure.
Issues, challenges and prospects of small and medium scale enterprises smes in portharcourt city, nigeria by 1dr. Nigeria is endowed with large oil, gas, hydro and solar resource, and it already has the potential to generate 12,522 megawatts mw of electric power from existing plants, but most days is only able to generate around. The study determined how high bank changes, high legal documentation fees and collateral securities are related to financing constraints for small and medium enterprises in south western nigeria. Nigeria united states agency for international development. After highlighting the major problems facing smes in nigeria, it is however crucial. The failure of the smes is not a serious issue, the factors most responsible for the failure of this smes is the issue of concern. Sumerianz journal of business management and marketing, 2018. The contributions of smes to the national economy are well documented in the literature.
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