Financing and Successful Micro, Small and Medium Scale Enterprise Development in Nigeria
DOI:
https://doi.org/10.59413/eafj/v3.i1.1Keywords:
Entrepreneurship, MSMEs, Economic Growth, Innovation, CreativityAbstract
This study explored entrepreneurial development as it relates to micro, small and medium-size enterprises (MSMEs) development in Nigeria. The evolution of entrepreneurship which is regarded as “an engine for growth” is being viewed from the perspective of economic, sociological, political, psychological, and composite perspectives. Entrepreneurial development in Nigeria is observed to be hampered by some factors including financing, management, infrastructure inadequacy, socio-cultural problems, strategic planning problems, multiple taxation, and unstable policy environment. In averting these problems to stir entrepreneurial spirit, this study suggested that Nigeria needs to resort to the 1999 United Nations work plan on National Enterprise Promotion Agency; plus, establishment of an anchor scheme to bring together MSMEs and provide capacity building and training programs on subjects such as corporate governance and having correct documentation in place to obtain credit.
References
Adebisi, J. F. & Gbegi, D. O. (2013). Effect of Multiple Taxation on the Performance of Small and Medium Scale Business Enterprises (A Study of West African Ceremics Ajeokuta, Kogi State). Mediterranean Journal of Social Sciences, 4(6), 323-334. DOI: https://doi.org/10.5901/mjss.2013.v4n6p323
Adeosun, O. T. & Shittu, A. I. (2021). Small–Medium Enterprise formation and Nigerian Economic Growth. Review of Economics and Political Science, Emerald Publishing Limited. https://doi.org/10.1108/REPS-07-2020-0089 DOI: https://doi.org/10.1108/REPS-07-2020-0089
Ahmad, N. H., Rahman, S. A., Rajendran, N. L. K. A., & Halim, H. A. (2020). Sustainable Entrepreneurship Practices in Malaysian Manufacturing SMEs: The Role of Individual, Organisational and Institutional Factors. World Review of Entrepreneurship, Management and Sustainable Development, 16(2), 153-171. https://doi.org/10.1504/WREMSD.2020.105986 DOI: https://doi.org/10.1504/WREMSD.2020.105986
Aribaba, F. O., Oladele, R., Ahmodu, A. L. O. & Yusuff, S. A. (2019). Tax Policies and Entrepreneurship Sustainability in Ondo State, Nigeria. Journal of Global Entrepreneurship Research, 9(1), 53-65 DOI: https://doi.org/10.1186/s40497-019-0168-0
Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108 DOI: https://doi.org/10.1177/014920639101700108
Barratt, M., & Choi, T. (2007). Mandated RFID and Institutional Responses: Cases of Decentralized Business Units. Production and Operations Management, 16(5), 569-585. https://doi.org/10.1111/j.1937-5956.2007.tb00281.x DOI: https://doi.org/10.1111/j.1937-5956.2007.tb00281.x
Burns, T., & Stalker, G. M. (1961). The Management of Innovation. London: Tavistock Publishing. Cited in Hurley, R. F. & Hult, G. T. M. (1998). Innovation, Market Orientation, and Organisational Learning: An Integration and Empirical Examination. Journal of Marketing, 62, 42-54. DOI: https://doi.org/10.1177/002224299806200303
Bushe, B. (2019). The causes and Impact of Business Failure Among Small to Micro and Medium Enterprises in South Africa. Africa’s Public Service Delivery and Performance Review, 7(1), p. a210. DOI: https://doi.org/10.4102/apsdpr.v7i1.210
Caldera, H. T. S., Desha, C., & Dawes, L. (2019). Evaluating the Enablers and Barriers for Successful Implementation of Sustainable Business Practice in “Lean” SMEs. Journal of Cleaner Production, 218, 575-590. https://doi.org/10.1016/j.jclepro.2019.01.239 DOI: https://doi.org/10.1016/j.jclepro.2019.01.239
Chege, S. M., & Wang, D. (2020). The Influence of Technology Innovation on SME Performance through Environmental Sustainability Practices in Kenya. Technology in Society, 60, 101210. https://doi.org/10.1016/j.techsoc.2019.101210 DOI: https://doi.org/10.1016/j.techsoc.2019.101210
Darcy, C., Hill, J., McCabe, T. J., & McGovern, P. (2014). A Consideration of Organisational Sustainability in the SME Context: A Resource-Based View and Composite Model. European Journal of Training and Development, 38(5), 398-414. https://doi.org/10.1108/EJTD-10-2013-0108 DOI: https://doi.org/10.1108/EJTD-10-2013-0108
Davis, P. E., & Bendickson, J. S. (2020). Strategic Antecedents of Innovation: Variance Between Small and Large Firms. Journal of Small Business Management, 59(1) 47-72. https://doi.org/10.1111/jsbm.12478 DOI: https://doi.org/10.1111/jsbm.12478
De Massis, A., Audretsch, D., Uhlaner, L. & Kammerlander, N. (2018). Innovation with Limited Resources: Management Lessons from the German Mittelstand. Journal of Product Innovation Management, 35(1), 125-146. DOI: https://doi.org/10.1111/jpim.12373
Dosi, G. (1988). Sources, Procedures, and Microeconomic Effects of Innovation. Journal of Economic Literature, 1120-1171.
Durst, S. & Wilhelm, S. (2012). Knowledge Management and Succession Planning in SMEs. Journal of Knowledge Management, 16(4), 637-649. DOI: https://doi.org/10.1108/13673271211246194
Easterby-Smith, M., Lyles, M. A., & Peteraf, M. A. (2009). Dynamic Capabilities: Current Debates and Future Directions. British Journal of Management, 20, S1-S8. https://doi.org/10.1111/j.1467-8551.2008.00609.x DOI: https://doi.org/10.1111/j.1467-8551.2008.00609.x
Eijdenberg, E. L., Thompson, N. A., Verduijn, K., & Essers, C. (2019). Entrepreneurial activities in a developing country: an institutional theory perspective. International Journal of Entrepreneurial Behavior & Research, 25 (3), 414-432. https://doi.org/10.1108/IJEBR-12-2016-0418 DOI: https://doi.org/10.1108/IJEBR-12-2016-0418
Eniola, A. A. (2020). Entrepreneurial Self-Efficacy and Orientation for SME Development. Small Enterprise Research, Taylor & Francis Group. https://doi.org/10.1080/13215906.2020.1752295 DOI: https://doi.org/10.1080/13215906.2020.1752295
Fagerberg, J., Mowery, D. C., & Nelson, R. R. (2004). The Oxford Handbook of Innovation. New York, NY: Oxford University Press.
Fauzi, A. A., & Sheng, M. L. (2020). The Digitalization of Micro, Small, and Medium-Sized Enterprises (MSMEs): An Institutional Theory Perspective. Journal of Small Business Management, 1-26. https://doi.org/10.1080/00472778.2020.1745536 DOI: https://doi.org/10.1080/00472778.2020.1745536
Forbes, D. P. (2005). Are some Entrepreneurs More Overconfident than Others? Journal of Business Venturing, 20(5), 623–640. https://doi.org/10.1016/j.jbusvent.2004.05.001 DOI: https://doi.org/10.1016/j.jbusvent.2004.05.001
Gartner, J. (1988) in Putari, Vijith (2006). Re: Evolution of Entrepreneurship. Retrieved from http://www.managementparadise.com/forums/entrepreneurship/1118-Evolution-entrepreneurship.html
Glover, J. L., Champion, D., Daniels, K. J., & Dainty, A. J. (2014). An Institutional Theory Perspective on Sustainable Practices Across the Dairy Supply Chain. International Journal of Production Economics, 152, 102-111. https://doi.org/10.1016/j.ijpe.2013.12.027 DOI: https://doi.org/10.1016/j.ijpe.2013.12.027
Grewal, D., Iyer, G. R., Javalgi, R. R. G., & Radulovich, L. (2011). Franchise Partnership and International Expansion: A Conceptual Framework and Research Propositions. Entrepreneurship Theory and Practice, 35(3), 533-557. https://doi.org/10.1111/j.1540-6520.2011.00444.x DOI: https://doi.org/10.1111/j.1540-6520.2011.00444.x
Hadjimanolis, A. (2019). Drivers and Barriers to Sustainable Innovation in SMEs in the Context of Small Countries. Managing Sustainable Innovation, Routledge. DOI: https://doi.org/10.4324/9780429264962-5
Hambrick, D. C., & Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of its top Managers. Academic of Management Review, 9, 193-206. https://doi.org/10.5465/amr.1984.4277628 DOI: https://doi.org/10.5465/amr.1984.4277628
Hambrick, D. C. (2007). Upper echelons theory: An update. Academy of Management Review, 32(2), 334-343. https://doi.org/10.5465/amr.2007.24345254 DOI: https://doi.org/10.5465/amr.2007.24345254
Heiskanen, E. (2002). The Institutional Logic of Life Cycle Thinking. Journal of Cleaner Production, 10(5), 427-437. https://doi.org/10.1016/S0959-6526(02)00014-8 DOI: https://doi.org/10.1016/S0959-6526(02)00014-8
Hisrich, R. D. & Peters, M. P. (2002). Entrepreneurship (International Edition). New York: The McGraw-Hill Companies.
Hmieleski, K. M., & Baron, R. A. (2008). When does Entrepreneurial Self-Efficacy Enhance Versus Reduce Firm Performance? Strategic Entrepreneurship Journal, 2(1), 57–72. https://doi.org/10.1002/sej.42 DOI: https://doi.org/10.1002/sej.42
Hooi, H. C., Ahmad, N. H., Amran, A., & Rahman, S. A. (2016). The Functional Role of Entrepreneurial Orientation and Entrepreneurial Bricolage in Ensuring Sustainable Entrepreneurship. Management Research Review, 39(1), 1616-1638. https://doi.org/10.1108/MRR-06-2015-0144 DOI: https://doi.org/10.1108/MRR-06-2015-0144
Hunjra, A. I., Chani, D., Irfan, M., Javed, S., Naeem, S. & Shahzad Ijaz, M. (2014). Impact of Micro Economic Variables on Firms Performance. International Journal of Economics and Empirical Research, 2(2), 65-73.
International Labour Organization (2015). Small and medium-sized enterprises and decent and productive employment creation: resource document. International Labour Office, Geneva. www.ilo.org/wcmsp5/groups/public/@ed_norm/@relconf/documents/meetingdocument/wcms_358294.pdf
Jia, C., Tang, X., & Kan, Z. (2020). Does the Nation Innovation System in China Support the Sustainability of Small and Medium Enterprises (SMEs) Innovation? Sustainability, 12(6), 2562. https://doi.org/10.3390/su12062562 DOI: https://doi.org/10.3390/su12062562
Kayed, R. N., & Hassan, M. K. (2011). Saudi Arabia’s Economic Development: Entrepreneurship as a Strategy. International Journal of Islamic and Middle Eastern Finance and Management, 4(1), 52–73. https://doi.org/10.1108/17538391111122203 DOI: https://doi.org/10.1108/17538391111122203
Laukkanen, T., Nagy, G., Hirvonen, S., Reijonen, H., & Pasanen, M. (2013). The Effect of Strategic Orientations on Business Performance in SMEs: A Multi-Group Analysis Comparing Hungary and Finland. International Marketing Review, 30, 510-535. https://doi.org/10.1108/IMR-09-2011-0230 DOI: https://doi.org/10.1108/IMR-09-2011-0230
Lijauco, F., Gajendran, T., Brewer, G., & Rasoolimanesh, S. M. (2020). Impacts of Culture on Innovation Propensity in Small to Medium Enterprises in Construction. Journal of Construction Engineering and Management, 146(3), 04019116. DOI: https://doi.org/10.1061/(ASCE)CO.1943-7862.0001753
Liu, H., Ke, W., Wei, K. K., Gu, J., & Chen, H. (2010). The Role of Institutional Pressures and Organizational Culture in the Firm's Intention to Adopt Internet-Enabled Supply Chain Management Systems. Journal of Operations Management, 28(5), 372- 384, https://doi.org/10.1016/j.jom.2009.11.010 DOI: https://doi.org/10.1016/j.jom.2009.11.010
Luthans, F., & Ibrayeva, E. S. (2005). Entrepreneurial Self-Efficacy in Central Asian Transition Economies: Quantitative and Qualitative Analyses. Journal of International Business Studies, 37(1), 92–110. https://doi.org/10.1057/palgrave.jibs.8400173 DOI: https://doi.org/10.1057/palgrave.jibs.8400173
Maksimov, V., Wang, S. L. & Luo, Y. (2017). Reducing Poverty in the Least Developed Countries: The Role of Small and Medium Enterprises. Journal of World Business, 52(2), 244-257. DOI: https://doi.org/10.1016/j.jwb.2016.12.007
Markman, G. D., Russo, M., Lumpkin, G. T., Jennings, P. D. D., & Mair, J. (2016). Entrepreneurship as a platform for pursuing multiple goals: A special issue on sustainability, ethics, and entrepreneurship. Journal of Management Studies, 53(5), 673–694. https://doi.org/10.1111/joms.12214 DOI: https://doi.org/10.1111/joms.12214
Massaro, M., Handley, K., Bagnoli, C. & Dumay, J. (2016). Knowledge Management in Small and Medium Enterprises: A Structured Literature Review. Journal of Knowledge Management, 20(2), 258-291. DOI: 10.1108/jkm-08-2015-0320 DOI: https://doi.org/10.1108/JKM-08-2015-0320
McGee, J. E., Peterson, M., Mueller, S. L., & Sequeira, J. M. (2009). Entrepreneurial Self-Efficacy: Refining the Measure. Entrepreneurship Theory and Practice, 33(4), 965–988. https://doi.org/10.1111/j.1540-6520.2009.00304.x DOI: https://doi.org/10.1111/j.1540-6520.2009.00304.x
National Bureau of Statistics Report (2019). National Survey of Micro Small & Medium Enterprises (MSMEs) 2017. Available at: https://nigerianstat.gov.ng/elibrary
Nimfa, D. T., Latiff, A. S. A. & Wahab, S. A. (2021). Theories Underlying Sustainable Growth of Small and Medium Enterprises. African Journal of Emerging Issues (AJOEI), 3(1), 43-66
Nor-Aishah, H., Ahmad, N. H., & Thurasamy, R. (2020). Entrepreneurial Leadership and Sustainable Performance of Manufacturing SMEs in Malaysia: The Contingent role of Entrepreneurial Bricolage. Sustainability, 12(8), 3100. https://doi.org/10.3390/su12083100 DOI: https://doi.org/10.3390/su12083100
Obasan, K. A., Shobayo, P. B. & Amaghionyeodiwe, A.L. (2016). Ownership Structure and the Performance of Small and Medium Enterprises in Nigeria. International Journal of Research in Social Sciences, 6(9), 474-492.
OECD (2015). In it Together: Why Less Inequality Benefits All. OECD Publishing, Paris. DOI: https://doi.org/10.1787/9789264235120-en
Okpara, F. (2019). Entrepreneurship and MSME Development in Nigeria. DBN Working Paper Series, 210, 33-53.
Oluyomibo, P. S. (2016). Towards Enhancing University Graduate Employability in Nigeria. The Journal of Sociology and Social Anthropology, 7(1), 1-11. DOI: https://doi.org/10.1080/09766634.2016.11885696
Omotayo, F. O. (2015). Knowledge Management as an Important Tool in Organizational Management: A Review of Literature. Library Philosophy and Practice, 1, 1-23.
Oshinowo, B., Adeoye, I., Ishola, T., Kamaldeen, L., (2017). Theory of Entrepreneurship. Abuja: National Open University of Nigeria.
Page, J. & Soderbom, M. (2015). Is small Beautiful? Small Enterprise, Aid and Employment in Africa. African Development Review, 27(S1), 44-55. DOI: https://doi.org/10.1111/1467-8268.12138
Papp R., & Luftman, J. (1995). Business and IT Strategic Alignment: New Perspectives and Assessments. Proceedings of the First Americas Conference on Information Systems, Pittsburgh, 226-228.
Penrose, E. (1959). The Theory of the Growth of the Firm. New York: Wiley.
Peruzzi, V. (2017). Does Family Ownership Structure Affect Investment-Cash Flow Sensitivity? Evidence from Italian SMEs. Applied Economics, 49(43), 4378-4393. DOI: https://doi.org/10.1080/00036846.2017.1282147
Pitan, O. S., & Adedeji, S. (2012). Skills Mismatch among University Graduates in the Nigeria Labor Market. US-China Education Review, A(1), 90–98.
Poon, J. M. L., Ainuddin, R. A., & Junit, S. O. H. (2006). Effects of Self-Concept Traits and Entrepreneurial Orientation on Firm Performance. International Small Business Journal: Researching Entrepreneurship, 24(1), 61–82. https://doi.org/10.1177/0266242606059779 DOI: https://doi.org/10.1177/0266242606059779
Porter, M. (1979). The Structure within Industries and Companies’ Performance. Review of Economics and Statistics, 61, 291-316. DOI: https://doi.org/10.2307/1924589
Porter, M. E. & Kramer, M. R. (2019). Creating Shared Value. Managing Sustainable Business, Springer, Dordrecht, 323-346. DOI: https://doi.org/10.1007/978-94-024-1144-7_16
Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79-91.
Price, D. P., Stoica, M., & Boncella, R. J. (2013). The Relationship between Innovation, Knowledge, and Performance in Family and Non-Family Firms: An Analysis of SMEs. Journal of Innovation and Entrepreneurship, 2(14), 1-20. https://doi.org/10.1186/2192-5372-2-14 DOI: https://doi.org/10.1186/2192-5372-2-14
PwC (2020). PwC’s MSME Survey Report. June 2020. Available at https://www.pwc.com/ng
Ratten, V., & Usmanij, P. (2020). Entrepreneurial Opportunities: Economics and Sustainability for Future Growth. Emerald Publishing Limited, 1-6. https://doi.org/10.1108/978-1-83909-285-520201001 DOI: https://doi.org/10.1108/978-1-83909-285-520201001
Rogers E. M. (1995). Diffusion of Innovations (4th Edition). New York: Free Press.
Rogers, B. A. (2002). Funding of SMEs: Sourcing of Funds and Problems Limiting Access, ICAN journal. Nigerian Accountant Vol. 35 No. 1 January/March.
Rogers, E. M. (2003). Diffusion of innovations (5th ed.). New York: The Free Press.
Roxas, H. B., Lindsay, V., Ashill, N., & Victorio, A. (2007). An Institutional View of Local Entrepreneurial Climate. Journal of Asia Entrepreneurship and Sustainability, 3(1), 1-28. http://hdl.handle.net/10536/DRO/DU:30042421
Shamsudin, M. F., Ishak, M. F., Hashim, M. A., Nabi, M. A., Yazid, M. F. M., & Razak, A. A. (2018). Preliminary Analysis on Relationship of CRM Functions Implementation Towards Firms Business Performance. Humanities & Social Sciences Reviews, 7(1), 113- 120. https://doi.10.18510/hssr/.20197114 DOI: https://doi.org/10.18510/hssr.2019.7114
Shibin, K. T., Dubey, R., Gunasekaran, A., Hazen, B., Roubaud, D., Gupta, S., & Foropon, C. (2020). Examining Sustainable Supply Chain Management of SMEs using Resource Based View and Institutional Theory. Annals of Operations Research, 290(1), 301-326, https://doi.org/10.1007/s10479-017-2706-x DOI: https://doi.org/10.1007/s10479-017-2706-x
SMEDAN/NBS (2013). National MSME Survey.
Srinivasan, R., Lilien, G. L., & Rangaswamy, A. (2002). Technological Opportunism and Radical Technology Adoption: An Application to E-business. Journal of marketing, 66(3), 47-60. https://doi.org/10.1509/jmkg.66.3.47.18508 DOI: https://doi.org/10.1509/jmkg.66.3.47.18508
Thomas, K. W., & Velthouse, B. A. (1990). Cognitive Elements of Empowerment: An “Interpretive” Model of Intrinsic Task Motivation. Academy of Management Review, 15(4), 666–681. https://doi.org/10.5465/amr.1990.4310926 DOI: https://doi.org/10.5465/amr.1990.4310926
Wernerfelt, B. (1984). A Resource‐Based View of the Firm. Strategic Management Journal, 5(2), 171-180. https://doi.org/10.1002/smj.4250050207 DOI: https://doi.org/10.1002/smj.4250050207
Whiteoak, J. W., Crawford, N. G., & Mapstone, R. H. (2005). Impact of Gender and Generational Differences in Work Values and Attitudes in an Arab Culture. Thunderbird International Business Review, 48(1), 77–91. https://doi.org/10.1002/tie.20086 DOI: https://doi.org/10.1002/tie.20086
Wood, R., & Bandura, A. (1989). Social Cognitive Theory of Organizational Management. Academy of Management Review, 14(3), 361–384. https://doi.org/10.5465/amr.1989.4279067 DOI: https://doi.org/10.5465/amr.1989.4279067
World Bank (2015). Learning and Results in World Bank Operations: Towards a New Learning Strategy, Evaluation 2, Independent Evaluation Group, World Bank, Washington, DC.
World Bank (2018). Digital Access: The Future of Financial Inclusion in Africa, International Financial Corporation, World Bank, Washington, DC.
Zhao, H., Seibert, S. E., & Hills, G. E. (2005). The Mediating role of Self-Efficacy in the Development of Entrepreneurial Intentions. Journal of Applied Psychology, 90(6), 1265–1272. https://doi.org/10.1037/0021-9010.90.6.1265 DOI: https://doi.org/10.1037/0021-9010.90.6.1265
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Supper Roland Okijie , Ubong Edem Effiong (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.