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Strategic Importance of the Nigerian Small and Medium Enterprises (SMES): Myth or Reality
Current Issue
Volume 2, 2014
Issue 4 (August)
Pages: 94-104   |   Vol. 2, No. 4, August 2014   |   Follow on         
Paper in PDF Downloads: 65   Since Aug. 28, 2015 Views: 1991   Since Aug. 28, 2015
Authors
[1]
Abdulazeez Abioye Lawal, Lagos State Polytechnic, Ikorodu, Lagos State, Nigeria.
[2]
Hakeem Adeniyi Ajonbadi, Department of Business and Entrepreneurship, Kwara State University, Malete, Kwara State, Nigeria.
[3]
Bisayo Oluwatosin Otokiti, Department of Business and Entrepreneurship, Kwara State University, Malete, Kwara State, Nigeria.
Abstract
This paper explores the empirical significance of the Nigerian SMEs on economic development. A survey of SME operators in Lagos State, Nigeria was undertaken by means of self-administered questionnaire and interview schedules. Stratified sampling technique was used to select samples from the state directory compiled by the Ministry of Commerce and Industry in 2013. The interview schedule was used to generate information for the development of three case studies. Data were analyzed by means of descriptive statistics, Pearson Product Moment Correlation and Regression analysis. The findings of the study revealed that participating responding firms made significant contributions to the Nigerian economy; also there exists significant correlations among the study variables and significant causal relationship between organizational characteristics and their perceptions on contributions to the Nigeria economy. The practical implication is that Nigerian SMEs have made the desired impact like their contemporaries in the developed economies. Therefore, well-articulated SME programmes, simplified operating rules, enabling environment, collaboration, financial incentives, cluster formation and capacity building are suggested for Nigerian SMEs to make more impactful contributions to industrial and technological development.
Keywords
Strategic Importance, Small and Medium Enterprises (SMEs), International Small and Medium Enterprises (iSMEs), Domestic SMEs, Nigerian Economy, Newly Industrialised Economies (NIEs)
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Retrieved June 21, 2012 from The West Point: Network Science Center Website: http://www.westpoint.edu/nsc/siteassets/sitepages/Publications/SME%20Thought%20Paper1.pdf
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