Mitigating the Challenges of Small and Medium Enterprises in Nigeria
Purpose- The purpose of the paper is to provide owners and managers of small businesses with necessary information about the challenges facing small businesses in Nigeria and present the possible tools, policies, and strategies to mitigate them.
Design/Methodology- Using the multi-case qualitative study, managers of successful small businesses narrated in an interview the tools, policies, and strategies they used to mitigate the identified challenges. The study answered the central question: what are the tools, policies, and strategies used by managers of successful small businesses to mitigate the challenges facing their firms?
Findings- The findings identified continuous government intervention and support to small businesses as a major tool that reduced the challenges facing the sector.
Practical Implications- The information found in this study can be used by small business managers to mitigate the challenges facing small businesses and reduce their massive failure in the economy. Mitigating the challenges facing small businesses in Nigeria will increase the number of successful small businesses, which will result in the reduced unemployment rate in the economy. A reduced unemployment rate in the Nigerian economy will increase the wellbeing of citizens, thereby reducing the unemployment rate in the economy.
Adebisi, J. F., & Gbegi, D. O. (2013). Effects of multiple taxations on the performance of small and medium scale business enterprises (A study of west Africa Ceramics Ajeokuta, Kogi State). Mediterranean Journal of Social Sciences, 4(6), 324-334. doi:10.5901/mjss.2013.v4n6p323 DOI: https://doi.org/10.5901/mjss.2013.v4n6p323
Adegbuyi, O. A., Akinyele, F. A., & Akinyele, S. T. (2015). Effect of social media marketing on small scale business performance in Ota-Metropolis, Nigeria. International Journal of Social Sciences and Management, 2(3), 275-283. doi:http://dx.doi.org/10.3126/ijssm.v2i3.12721 DOI: https://doi.org/10.3126/ijssm.v2i3.12721
Ademola, I. S., & Michael, A. A. (2012). Small scale businesses as a remedy to unemployment problem in Nigeria. International Journal of Scientific & Engineering Research, 3(11), 1-6. Retrieved January 3, 2017, from http://www.ijser.org/onlineResearchPaperViewer.aspx?SMALL-SCALE-BUSINESSES-AS-A-REMEDY-TO-UNEMPLOYMENT-PROBLEM-IN-NIGERIA.pdf
Adeyemi, K. S., & Abiodun, A. J. (2014). Development of non-oil sector in Nigeria: Challenges and lessons for less developed countries. Covenant Journal of Business and Social Sciences, 5(1), 23-44. Retrieved from http://dspace.covenantuniversity.edu.ng
Alarape, A. A. (2014). Entrepreneurial orientation and the growth performance of small and medium enterprises in Southwestern Nigeria. Journal of Small Business & Entrepreneurship, 26(6), 553-577. doi:10.1080/08276331.2014.892308 DOI: https://doi.org/10.1080/08276331.2014.892308
Alderson, A. S., Beckfield, J., & Nielsen, F. (2005). Exactly how has income inequality changed? Patterns of distributional change in core societies. International Journal of Comparative Sociology, 46(5-6), 405-423. DOI: https://doi.org/10.1177/0020715205059208
Anjum, A., Yasmeen, K., & Khan, B. (2011). Performance Appraisal Systems In Public Sector Universities Of Pakistan. International Journal of Human Resource Studies, 1(1), 41-51. Retrieved from http://www.macrothink.org/journal/index.php/ijhrs DOI: https://doi.org/10.5296/ijhrs.v1i1.851
Armstrong M. (2006). A Handbook of Personnel Management Practice (6th ed.). London: Kogan Pag.
Autio, E., & Fu, K. (2015). Economic and political institutions and entry into formal and informal entrepreneurship. Asia Pacific Journal of Management, 32(1), 67-94. doi:10.1007/s10490-014-9381-0 DOI: https://doi.org/10.1007/s10490-014-9381-0
Blank, S. (2013). Why the Lean Start-Up Changes Everything. Harvard Business Review, 91(5). 63-72.
Boateng, A., & Abdulrahman, M. D. (2013). Micro small-sizes enterprise and bank credit: Evidence from West Africa. Journal of Emerging Market Finance, 12(2), 129-150. doi:10.1177/0972652713494043 DOI: https://doi.org/10.1177/0972652713494043
Brigham, E. F., & Ehrhardt, M C. (2014). Financial management theory and practice. Delhi: Cengage Learning India Private Limited.
Chin, T. A., Hamid, A. B. A., Raslia, A., & Baharun, R. (2012). Adoption of supply chain management in SMEs. Procedia - Social and Behavioral Sciences, 65(2012), 614-619. doi:10.1016/j.sbspro.2012.11.173 DOI: https://doi.org/10.1016/j.sbspro.2012.11.173
Ciarniene, R. and Vienazindiene, M. (2010). Critical Issues for Compensation and Incentives Management: Theoretical Approach. Management Theory and Studies for Rural Business Infrastructure Development, 5(24), 15-21.
Cope, J. (2010). Entrepreneurial learning from failure: An interpretative phenomenological analysis. Journal of Business Venturing, 26(6), 604-623. doi:10.1016/j.jbusvent.2010.06.002 DOI: https://doi.org/10.1016/j.jbusvent.2010.06.002
Dana, L. P. (2017). International entrepreneurship in resource-rich landlocked African countries. Journal of International Entrepreneurship, 1-20. Retrieved from https://link.springer.com
Danish, R.Q, & Usman, A. (2010). Impact of Reward and Recognition on Job Satisfaction and Motivation: An Empirical Study from Pakistan.,. International Journal of Business and Management, 5(2), 159-167. DOI: https://doi.org/10.5539/ijbm.v5n2p159
Dauda, Y. D., & Akingbade, W.A. (2010). Employee’s Market orientation and Business performance in Nigeria: Analysis of small Business Entreprises in Lagos state. International Journal of marketing studies, 2(2), 134-143. DOI: https://doi.org/10.5539/ijms.v2n2p134
Dugguh, S. I. (2015). Critical issues in managing small and medium enterprises: The Nigerian experience. The International Journal Of Business & Management, 3(9), 3(9), 52-59. Retrieved from http://search.proquest.com/openview/748ba925a50ff6b6415565048ac9bbbf/1.pdf?pq-origsite=gscholar&cbl=2035012
Ekpo, U. N., & Bassey, G. E. (2016). An analysis of the economic consequences of infrastructural deficit in a developing economy: The case of electricity supply in Nigeria. International Journal of Social Sciences, 10(1), 28-48. Retrieved from http://socialscienceuniuyo.com/wp-content/uploads/2016/01/28-48.pdf
Faloye, D. O. (2014). The adoption of e-commerce in small businesses: empirical evidence from the retail sector in Nigeria. Journal of the Academy of Business and Retail Management Research, 8(2), 54-62.
Farrington, S. M. (2012). Personality and job satisfaction: A small-business owner perspective. Management Dynamics, 21(2), 2-15. Retrieved from http://hdl.handle.net/10520/EJC124758
Gazioglu, S. and A. Tansel. (2006). Job Satisfaction in Britain: Individual and Job Related Factors. Applied Economics, 8, 1163-1171. DOI: https://doi.org/10.1080/00036840500392987
Gbandi, E. C., & Amissah, G. (2014). Financial options for small and medium enterprises (SMEs) in Nigeria. European Scientific Journal, 10(1), 327-340. Retrieved from http://www.eujournal.org/index.php/esj/article/view/2565
Hawkins, D. I., & Mothersbaugh, D. L. (2013). Consumer behavior building marketing strategy. New York: McGraw-Hill Education.
Hess, M. F., & Cottrell Jr., J. H. (2016). Fraud risk management: A small business perspective. Business Horizons, 59(1), 13-18. doi:10.1016/j.bushor.2015.09.005 DOI: https://doi.org/10.1016/j.bushor.2015.09.005
Holt, M., & Powell, S. (2015). Health and well-being in small and medium-sized enterprises (SMEs). What public health support do SMEs really need? Perspect Public Health, 135(1), 49-55. doi:10.1177/1757913914521157. DOI: https://doi.org/10.1177/1757913914521157
Hurst, E., & Pugsley, B. W. (2011). What Do Small Businesses Do? Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, 43(2), 73-142. doi:10.3386/w17041 DOI: https://doi.org/10.1353/eca.2011.0017
Iqbal, M. Z., Arif, M. I., and Abbas, F. (2011). HRM Practices in Public and Private Universities of Pakistan: A Comparative Study. International Education Studies, 4(4), 215-222. DOI: https://doi.org/10.5539/ies.v4n4p215
Islam, M. A., Khan, M. A., Obaidullah, A. Z. M., & Alam, M. S. (2011). Effect of entrepreneur and firm characteristics on the business success of small and medium enterprises (SMEs) in Bangladesh. International Journal of Business and Management, 6(3), 289-299. Retrieved from Retrieved from http://proquest.umi.com DOI: https://doi.org/10.5539/ijbm.v6n3p289
Juliana, A. O. (2013). Small scale industries and rural development in Edo State, Nigeria. Journal of Educational and Social Research, 3(9), 25-33. doi:10.5901/jesr.2013.v3n9p25
Karatepe, O. M., & Vatankhah, S. (2015). High-performance work practices, career satisfaction, and service recovery performance: a study of flight attendants. Tourism Review, 70(1), 56-71. DOI: https://doi.org/10.1108/TR-01-2014-0004
Khurram,S., & Sajid Bashir. (2008). Impact of HR Practices on Perceived Performance of. International Review of Business Research Papers, 4(2), 302-315.
Kwenin, D.O., Muathe, S., & Nzulwa, R. (2013). The Influence of Employee Rewards, Human Resource Policies and Job Satisfaction on the Retention of Employees in Vodafone Ghana Limited. European Journal of Business and Management, 5(12), 2222-2839.
Kwenin, D.O., Muathe, S., & Nzulwa, R. (2013). The Influence of Employee Rewards, Human Resource Policies and Job Satisfaction on the Retention of Employees in Vodafone Ghana Limited. European Journal of Business and Management, 5(12), 2222- 2839.
La Porta, R., & Shleifer, A. (2014). Informality and development. Journal of Economic Perspectives, 28(3), 109-126. doi:10.1257/jep.28.3.109 DOI: https://doi.org/10.1257/jep.28.3.109
Lai, H. ( 2012). A Study of the Relationship among the compensation management, Operational and Organisational Climate. International Journal of Organisational Innovation, 231-249.
Lamba, S., and Choudhary, N. (2013). Impact of HRM Practices on Organizational Commitment of Employees. International Journal of Advancements in Research & Technology, 2(4), 407-423.
Lampadarios, E. (2016). Critical success factors for SMEs: An empirical study in the UK chemical distribution industry. International Journal of Business and Management, 11(7), 67-82. doi:10.5539/ijbm.v11n7p67 DOI: https://doi.org/10.5539/ijbm.v11n7p67
Lee, O., Jeon, J., & Na, D. (2016). A study on the influence factors on successful small business start-ups - micro credit received from Seoul credit guarantee foundation. Indian Journal of Science and Technology, 9(24), 1-9. doi: 10.17485/ijst/2016/v9i24/96013 DOI: https://doi.org/10.17485/ijst/2016/v9i24/96013
Ligthelm, A. A. (2013). Confusion about entrepreneurship? Formal versus informal small businesses. Southern African Business Review, 17(3), 57-75.
Lucky, E. O., & Olusegun, A. I. (2012). Is small and medium enterprises (SMEs) an entrepreneurship? International Journal of Academic Research in Business and Social Sciences, 2(1), 487-496. Retrieved from http://www.hrmars.com
Lussier, R. N., & Corman, J. (2015). A business success versus failure prediction model for entrepreneurs with 0-10 employees. Journal of Small Business Strategy, 7(1), 21-36.
Majumder, T. H. (2012). Human Resource Management Practices and Employees’ Satisfaction Towards Private Banking Sector in Bangladesh. International Review of Management and Marketing, 2(1), 52-58.
Marom, S., & Lussier, R. N. (2014). A business success versus failure prediction model for small businesses in Israel. Business and Economic Research, 4(2), 63-81. doi:http://dx.doi.org/10.5296/ber.v4i2.5997 DOI: https://doi.org/10.5296/ber.v4i2.5997
McIvor, R. (2007). Outsourcing and the spin-off arrangement: lessons from a utility company. Journal of General Management, 33(1), 51-70. DOI: https://doi.org/10.1177/030630700703300104
Mello, J.A. (2007). Strategic Human Resource Management (2nd ed.). India: Cengage.South-Western.
Memon, S.B., Panhwar, A.I. & Rohra, L.C. (2010). Investigating the Mediating Role of Human ResourPolicies in Employee Retention. Australian Journal of Basic and Applied Science, 4(8), 4046-4057.
Memon, S.B., Panhwar, A.I. & Rohra, L.C. (2010). Investigating the Mediating Role of Human Resource Policies in Employee Retention. Australian Journal of Basic and Applied Sciences, 4(8), 4046-4057.
Memon, S.B., Panhwar, A.I. & Rohra, L.C. (2010). Investigating the Mediating Role of Human Resource Policies in Employee Retention. Australian Journal of Basic and Applied Sciences., 4(8), 4046-4057.
Mramba, N., Apiola, M., Sutinen, E., Haule, M., Klomsri, T., & Msami, P. (2015). Empowering street vendors through technology: An explorative study in Dar es Salaam, Tanzania. Engineering, Technology and Innovation/International Technology Management Conference (ICE/ITMC) (pp. 1-9). Dar es Salaam: IEEE Xplore. doi:10.1109/ICE.2015.7438651 DOI: https://doi.org/10.1109/ICE.2015.7438651
Muhammad Usman, W. A. (2015). Role of Board and Firm Performance in Determination of CEO Compensation: Evidence from Islamic Republic of Pakistan. Pakistan Journal of Commerce and Social Sciences, 9(2), 641-657.
National Population Commission of Nigeria. (2011, n. d. n. d.). News Release. NPC News, p. 20.
Obiwuru, T. C., Okwu, T. C., Akpa, V. O., & Nwankwere, I. A. (2011). Effects of Leadership on organizational performance: A survey of selected small and medium scale enterprises in Ikosi-Ketu council development area of Lagos State, Nigeria. Australian Journal of Business and Management Research, 1(7), 100-111.
Obokoh, L. O., & Asaolu, T. O. (2012). Examination of relationship between financial market liberalization and the failures of small and medium sized enterprises in Nigeria. International Business Research, 5(1), 182-193. doi:doi:10.5539/ibr.v5n1p182 DOI: https://doi.org/10.5539/ibr.v5n1p182
Oliveira, J., Filho, E. F., Nagano, M. S., & Ferraudo, A. S. (2015). Managerial styles of small business owners: A study based on the organizational life cycle and on concepts concerning managers’ functions and roles. Revista Brasileira de Gestão de Negócios, 17(57), 1279-1299. DOI: https://doi.org/10.7819/rbgn.v17i57.1650
Onukwube, H, N. (2012). Correlates of job satisfaction amongst quantity surveyors in consulting firms in Lagos, Nigeria. Australasian Journal of Construction Economics and Building, 12(2), 43-54. DOI: https://doi.org/10.5130/AJCEB.v12i2.2460
Oyelola, O. T., Ajiboshin, I. O., Raimi, L., Raheem, S., & Igwe, C. N. (2013). Entrepreneurship for sustainable economic growth in Nigeria. Journal of Sustainable Development Studies, 2, 197-215. Retrieved from http://infinitypress.info/index.php/jsds/article/view/67
Padala, S.R. (2011). Employees‟ Job Satisfaction and Organisational Commitment in Nagarjuna Fertilizers and Chemicals Limited, India. , Journal of Research in International Business and Management, 1(1), 17-27.
Paik, Y. (2013). Serial entrepreneurs and venture survival: Evidence from U.S. venture-capital financed semiconductor firms. Strategic Entrepreneurship Journal, 8(3), 254-268. doi:10.1002/sej.1161 DOI: https://doi.org/10.1002/sej.1161
Plant, T. (2006). The Performance Measurement Paradox in Local Government Management in Pm. Public Management, 88(4), 16-20.
Qasim, S. Cheema, F.E.A., & Syed, N.A. (2012). Exploring Factors Affecting Employees Job Satisfaction at Work. Journal of Management and Social Sciences,, 8(1), 31-39.
Remi, J. A., Adegoke, A. I., & Oppola, N. A. (2010). Impact of socio-economic factors on the performance of small-scale enterprises in Ogun State Nigeria. International Business Research, 3(2), 92-99. doi:http://dx.doi.org/10.5539/ibr.v3n2p92 DOI: https://doi.org/10.5539/ibr.v3n2p92
Roever, S. (2016). Informal Trade Meets Informal Governance: Street Vendors and Legal Reform in India, South Africa, and Peru. Cityscape: A Journal of Policy Development and Research, 18(1), 27-46. Retrieved from https://www.huduser.gov/portal/periodicals/cityscpe/vol18num1/ch2.pdf
Rowley, J. (2012). Conducting research interviews. Management Research Review, 35(3/4), 260-271. doi:10.1108/01409171211210154 DOI: https://doi.org/10.1108/01409171211210154
SBA. (2017). Starting and Managing. Retrieved from U. S. Small Business Administration:: https://www.sba.gov
SBA. (2017). About us. Retrieved from U.S. Small Business Administration: https://www.sba.gov/about-sba
Shehu, A. M., Aminu, I. M., NikMat, N. K., Nasiru, A., Johnson, P. O., Tsagem, M. M., & Kura, K. M. (2013). The mediating effect between some determinants of SME performance in Nigeria. Management, 3(4), 237-242. doi:10.5923/j.mm.20130304.07.
Siqueira, A. C. O., Webb, J. W., & Bruton, G. D. (2016). Informal entrepreneurship and industry conditions. Journal of Entrepreneurship Theory and Practice, 40(1), 177-200. doi:10.1111/etap.12115 DOI: https://doi.org/10.1111/etap.12115
SMEDAN. (2013). SMEDAN and national bureau of statistics collaborative survey: Selected findings 2013. Abuja: National Bureau of Statistics. Retrieved from http://nigerianstat.gov.ng
Terera, S.R., & Ngirande, H. (2014). The Impact of Rewards on Job Satisfaction and Employee Retention. Mediterranean Journal of Social Sciences, MCSER Publishing, Rome-Italy., 5(1), 2039-2117.
Terera, S.R., & Ngirande, H. (2014). The Impact of Rewards on Job Satisfaction and Employee Retentions. Mediterranean Journal of Social Science, 5(1), 2039-2117. DOI: https://doi.org/10.5901/mjss.2014.v5n1p481
Tessema, M. and Soeters, J. (2006). Challenges and prospects of HRM in developing countries: testing the HRM-performance link in Eritrean civil service. International Journal of Human Resource Management, 17(1), 86-105. DOI: https://doi.org/10.1080/09585190500366532
Ucbasaran, D., Shepherd, D., Lockett, A., & Lyon, S. (2013). Life after business failure: The process and consequences of business failure for entrepreneurs. Journal of Management, 39(1), 163-202. doi:10.1177/0149206312457823 DOI: https://doi.org/10.1177/0149206312457823
Vikram Jeet, Dr. Sayeeduzzafar. (2014). A study of HRM practices and its impact on employees job satisfaction in private sector banks: A case study of HDFC Bank. International Journal of Advance Research in Computer Science and Management Studies, 2(1), 62-68.
Wen-Long, C., Wen Guu, R. L., & Chiang, S. M. (2014). A study of the relationship between entrepreneurship courses and opportunity identification: An empirical survey. Asia Pacific Management Review, J9, 1-24.
Copyright (c) 2019 Babandi Ibrahim Gumel
This work is licensed under a Creative Commons Attribution 4.0 International License.