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Relating External Support, Business Growth & Creating Strategies for Survival: A Comparative Case Study Analyses of Small Manufacturing Firms (SMFs) and Entrepreneurs

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  • Charles Jabani Mambula

Abstract

Using a comparative case study approach, this paper presents three of thirty-two findings on Small Plastic Manufacturing Firms' (SPMFs) and Entrepreneurs in Nigeria. The selected firms represent performance differences between firms that have received external support and those that did not. Due to lack of support, some entrepreneurs had to independently sustain themselves through their creative abilities. Findings from the study revealed that Small Plastic Manufacturing Entrepreneurs in Nigeria are constrained by certain external and internal factors. Ironically, these constraints seem to have challenged some entrepreneurs to invent original strategies on their own, to cope, survive and to remain in business. Lack of financial capital, especially foreign exchange needed to import vital operating inputs from abroad has been the most serious constraint. Other serious external constraints identified are inadequate infrastructure facilities, competition from large firms, unfavorable government policies, dearth of machines and spare parts and paucity of raw materials. Internal obstacles like incompetent planning, poor organizational skills and limited knowledge among others were common obstacles faced by the entrepreneurs. In addition, another discovery is that funding assistance to entrepreneurs by relevant institutions concerned is not free from bias on the basis, of favoritism. It is therefore recommended that funding institutions should give due consideration and encouragement to promising talents. Two have especially been identified from the study as typical examples of potential avant-garde entrepreneurs and such should not be neglected or wasted. Guidance for further progress through training is another helpful approach to take and give succor to such admirable talents. Entrepreneurs, who qualify for grants from institutions, should completely be decided on compliance to standard selection procedures, rules and evidence of superior entrepreneurial qualities. In addition, those who qualify for support should be determined only after feasible business plans have been presented.

Suggested Citation

  • Charles Jabani Mambula, 2004. "Relating External Support, Business Growth & Creating Strategies for Survival: A Comparative Case Study Analyses of Small Manufacturing Firms (SMFs) and Entrepreneurs," Small Business Economics, Springer, vol. 22(2), pages 83-109, March.
  • Handle: RePEc:kap:sbusec:v:22:y:2004:i:2:p:83-109
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    Cited by:

    1. Toledo, Arcelia & Hernández, José de la Paz & Griffin, Denis, 2010. "Incentives and the growth of Oaxacan subsistence businesses," Journal of Business Research, Elsevier, vol. 63(6), pages 630-638, June.
    2. Maribel Guerrero & Francisco Liñán & F. Rafael Cáceres-Carrasco, 2021. "The influence of ecosystems on the entrepreneurship process: a comparison across developed and developing economies," Small Business Economics, Springer, vol. 57(4), pages 1733-1759, December.
    3. Ashenafi Biru & Pia Arenius & Garry Bruton & David Gilbert, 2024. "Firm Formalization Strategy : The Interaction of Entrepreneurs and Government Officials in the Enforcement of Regulation," Post-Print hal-04493248, HAL.

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