IDEAS home Printed from https://ideas.repec.org/a/dug/actaec/y2012i3p45-53.html
   My bibliography  Save this article

Small and Medium Enterprises and Economic Growth in Nigeria

Author

Listed:
  • Muritala Taiwo A

    (College of Management and Social Sciences, Fountain University Osogbo)

  • Awolaja Ayodeji M

    (College of Management and Social Sciences, Fountain University Osogbo)

  • Bako Yusuf A

    (Federal Polytechnic Ilaro, Nigeria)

Abstract

This paper seeks to critically investigate the impact of small and medium enterprises as a veritable tool on Economic Growth. A survey method was used to gather data from 200 SME/Entrepreneurial officers and Managers from five selected local government in Nigeria. Data was collected with a structured questionnaire and analyzed with several descriptive statistics to identify the perception of the roles of SMEs in Nigeria. The results of the study concludes that lack of financial support, poor management, corruption, lack of training and experience, poor infrastructure, insufficient profits, and low demand for product and services are seen as the most common constraints hindering small and medium scale business growth in Nigeria. Hence, it therefore recommends that Government should assist prospective entrepreneurs towards having access to finance and necessary information relating to business opportunities, modern technology, raw materials, market, plant and machinery which would enable them to reduce their operating cost and be more efficient to meet the market competitions.

Suggested Citation

  • Muritala Taiwo A & Awolaja Ayodeji M & Bako Yusuf A, 2012. "Small and Medium Enterprises and Economic Growth in Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 3(3), pages 45-53, June.
    • Handle: RePEc:dug:actaec:y:2012:i:3:p:45-53
    as

    Download full text from publisher

    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/1283/1172
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Levy, Brian, 1993. "Obstacles to Developing Indigenous Small and Medium Enterprises: An Empirical Assessment," The World Bank Economic Review, World Bank, vol. 7(1), pages 65-83, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Victor Chukwunweike Nwokocha & Christopher Emmanuel Nwankwo & Ijeoma Gladys Nwosu & Ignatius Ani Madu, 2020. "An Appraisal of Production Subcontracting Toward Small and Medium Scale Enterprises Development in the Nigeria Industrial Sector: A Review Approach," SAGE Open, , vol. 10(3), pages 21582440209, July.
    2. Morongwa Ramasobana & Olawale Fatoki, 2018. "Business Attributes and Marketing Communication Strategies of SMEs in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 9(6), pages 90-97.
    3. Makinde Olubisi G & Asikhia Olalekan U, 2018. "Strategic Planning and Performance of Nigerian SMEs: The Moderating Role of Entrepreneurial Characteristics," Journal of Economics and Behavioral Studies, AMH International, vol. 9(6), pages 98-108.
    4. Foluso Olugbenga Aribaba & Rotimi Oladele & Abdul-Lateef Olamide Ahmodu & Saliu Adesina Yusuff, 2019. "Tax policies and entrepreneurship sustainability in Ondo State, Nigeria," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-13, December.
    5. Victor Chukwunweike Nwokocha & Ignatius Ani Madu, 2020. "Strategic Alliance and Its Influence on the Performance of Small- and Medium-scale Enterprises in Enugu State, Nigeria," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 12(2), pages 199-216, May.
    6. Olalekan Asikhia & Vannie Naidoo, 2020. "SMEs Management Success Determinants and its Implications on Their Performance in South West, Nigeria," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 1057-1072.
    7. Otugo Nkiru Esther & Edoko Tonna David* & Ezeanolue Uju Scholastica, 2018. "Effect of Small and Medium Enterprises on Economic Growth in Nigeria," Sumerianz Journal of Business Management and Marketing, Sumerianz Publication, vol. 1(2), pages 73-78, 05-2018.
    8. Amadin Victor Idehen & Osarumwense Vincent Iguisi, 2020. "Effect of foreign private investment on the development of small and medium enterprises in Nigeria," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(7), pages 257-266, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Klapper, Leora & Sarria-Allende, Virginia & Sulla, Victor, 2002. "Small and medium size enterprise financing in Eastern Europe," Policy Research Working Paper Series 2933, The World Bank.
    2. Huw Lloyd-Ellis & Dan Bernhardt, 2000. "Enterprise, Inequality and Economic Development," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(1), pages 147-168.
    3. Alice Mesnard & Martin Ravallion, 2006. "The Wealth Effect on New Business Startups in a Developing Economy," Economica, London School of Economics and Political Science, vol. 73(291), pages 367-392, August.
    4. Sonia Mukherjee, 2018. "Challenges to Indian micro small scale and medium enterprises in the era of globalization," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-19, December.
    5. Wignaraja, Ganeshan, 2006. "Foreign Ownership, Technological Capabilities and Exports: Evidence from 205 Clothing Firms in Sri Lanka," MERIT Working Papers 2006-032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Johan Karlsson, 2021. "Firm size and growth barriers: a data-driven approach," Small Business Economics, Springer, vol. 57(3), pages 1319-1338, October.
    7. Bhat, Shabir A & Khan, Riyaz A, 2014. "Government Policy Ecosystem for Entrepreneurship Development in MSEs Sector," MPRA Paper 54540, University Library of Munich, Germany.
    8. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    9. Navas-Alemán, Lizbeth & Pietrobelli, Carlo & Kamiya, Marco, 2012. "Inter-Firm Linkages and Finance in Value Chains," IDB Publications (Working Papers) 4067, Inter-American Development Bank.
    10. Kirikkaleli, Dervis & Athari, Seyed Alireza, 2020. "Time-frequency co-movements between bank credit supply and economic growth in an emerging market: Does the bank ownership structure matter?," The North American Journal of Economics and Finance, Elsevier, vol. 54(C).
    11. Bermpei, Theodora & Karadimitropoulou, Aikaterini & Triantafyllou, Athanasios & Alshalahi, Jebreel, 2023. "Does commodity price uncertainty matter for the cost of credit? Evidence from developing and advanced economies," Journal of Commodity Markets, Elsevier, vol. 29(C).
    12. Kung'U, Gabriel Kamau, 2011. "Factors influencing SMEs access to finance: A case study of Westland Division,Kenya," MPRA Paper 66633, University Library of Munich, Germany, revised 2014.
    13. Blackman, Allen & Bannister, Geoffrey J., 1998. "Community Pressure and Clean Technology in the Informal Sector: An Econometric Analysis of the Adoption of Propane by Traditional Mexican Brickmakers," Journal of Environmental Economics and Management, Elsevier, vol. 35(1), pages 1-21, January.
    14. H. C. J. Hanns Pichler, 2015. "In Quest of SME-Conducive Policy Formulation," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(Special E), pages 271-282, September.
    15. Rose Jestina Katabi, Romanus Dimoso, 2018. "Relationship Between SMEs Sources of Funds and Investment Evaluation Techniques," Business and Management Studies, Redfame publishing, vol. 4(4), pages 61-70, December.
    16. Huw Lloyd-Ellis, 2003. "On the Impact of Inequality on Productivity Growth in the Short and Long Term: A Synthesis," Canadian Public Policy, University of Toronto Press, vol. 29(s1), pages 65-86, January.
    17. Oyelaran-Oyeyinka, Banji, 2001. "Networks and Linkages in African Manufacturing Cluster: A Nigerian Case Study," UNU-INTECH Discussion Paper Series 2001-05, United Nations University - INTECH.
    18. Sjöquist, Pernilla, 1996. "Small Scale Industries, Transactions Costs and Reform: The Case of Tanzania," SSE/EFI Working Paper Series in Economics and Finance 124, Stockholm School of Economics.
    19. Castañeda, Jaime Andrés & Brennan, Mark & Goentzel, Jarrod, 2019. "A behavioral investigation of supply chain contracts for a newsvendor problem in a developing economy," International Journal of Production Economics, Elsevier, vol. 210(C), pages 72-83.
    20. Doojav, Gan-Ochir & Luvsannyam, Davaajargal & Sukhbaatar, Bilguun & Sodnomdarjaa, Bilguunzul & Otgonbat, Tsolmon & Batmunkh, Khuslen & Gantumur, Munkhbayar & Enkh-Amgalan, Elbegjargal, 2019. "Development and access to finance of small and medium-sized enterprises in Mongolia," MPRA Paper 106454, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:actaec:y:2012:i:3:p:45-53. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniela Robu (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.