theories of smes in nigeria

and Medium Enterprises (SMEs) In Nigeria AJANI, Akeem Olanrewaju, ODESANYA, Adesina Emmanuel, BALOGUN, Gideon Oluwaseun, ISHOLA, Muyideen Alowonle Corresponding Author: AJANI, Akeem Olanrewaju Abstract: This paper examined the entrepreneurship theories in restructuring small and medium enterprise (SMEs) in Nigeria as predictor catalyst of development. Small and Medium Enterprises (SMEs) have been contributing so much towards the GDP of India. The era of 1980s can be said to be golden years of SMEs in Nigeria. In the face of poor accounting or non-existence accounting information, good funds … Looking at our earlier definition of SMEs, it means that 97% of all businesses in Nigeria are “small businesses”. In the region, SMEs are severely hampered by a weakly developed business environment. Whether they deal in services or manufacturing, exporting SMEs show higher total revenues, faster total revenue growth, and higher labor productivity than their nonexporting SME counterparts. Those were the years of the Nigerian Industrial Development Bank Ltd (NIDB) and the Nigerian Bank for Commerce and Industry (NBCI). Red tape, corruption, complex entry regulations etc. The questionnaire was divided into sections A and B. 3.2.3 Optimal Tax Theory The … friends/relatives etc. There is therefore strong need to assist SMEs to improve their technical efficiency through adequate supply of inputs, markets, and credit facilities, and undertaking extensive infrastructural development and training could be important measures. The findings also indicate that firms use a combination of variables from all three theories and some aspects of the much criticized Uppsala model are still significant in describing the internationalization process behavior of SMEs. Keywords: Internationalization, SMEs, Uppsala Model, Network Theory, International … In any given national economy, SMEs sometimes outnumber large … The SME business culture in Nigeria is entrenched in our values as a people, although now gradually evolving beyond societal idiosyncrasies and adopting global best practice in certain areas. … financial challenges of SMEs in Nigeria today, have taken the dimension of inaccessibility of funds (Aremu and Adeyemi, 2011). Obstacles of SMEs access to funds in Nigeria have not been surmounted because of SMEs inability to generate and use quality accounting information (Richard, McMahon and Holmes, 1991). Abstract: This study examined the relationship between ICT and Accounting system of SMEs in Nigeria. SMEs: Building blocks for economic growth. 2.2 SMEs in Nigeria: Concept, Characteristics, Importance, and Challenges There is no consensus on the definition of SME because classifying businesses in terms of asset base, size of the workforce, technological advancement, capital employed and net-worth cannot be subjectively measured as economies of countries differs and each economy establishes its own standard for defining SME. Furthermore, SMEs . Two hypotheses were formulated and … ( Oyekunmi, 2006). Oko-Oza, 2017) in their view of SMEs in Nigeria, contributing to the national output by mass producing, packaging and exporting processed agricultural and solid mineral products, through increasing internationalization process. SME to Nigeria Gross Domestic Product (GDP) remains very poor, hence; the need for alternative funding window. SME operate on a narrow capital base, those who have the urge to expand in terms of assets or sales turnover or aspire to augment quality, have limited options for financing for example, through retained profits and borrowing from informal sources i.e. To facilitate this evaluation a typology is presented which … Small and medium enterprises (SMEs) form the core of majority of the world’s economies. Individual capacity should be given serious consideration before taxes are determined (Atawodi & Ojeka, 2012). The comparative factors have to do with the way SMEs are situated vis-à-vis large enterprises in the … In Nigeria, SMEs contribute about 76% of the workforce, with contribution to GDP at about 50% and contribution to exports at 8%. While the … theory. The abbreviation "SME" is used by international organizations such as the World Bank, the European Union, the United Nations and the World Trade Organization (WTO).. In addition, development of SMEs facilitates distribution of economic activities within the economy and thus fosters equitable income distribution. The study area is North Central Geo-Political Zone of Nigeria comprising mainly profit based … Theory X and Theory Y Type Leadership Behavior and its Impact on Organizational Performance: Small Business Owners in the Şishane Lighting and Chandelier District. involved with SMEs in terms of the share of their loan book going to SMEs than banks in South Africa and Nigeria. In much of the developing world, the private economy … Member … The study adopted the survey research design, which involves the collection of data from the Accounting department of SMEs in Nigeria. Not minding other challenges that tiny medium enterprise scale (SMEs) face in other developing countries like Nigeria; inadequate capital, poor technical and managerial skills, environmental effects … Small and medium-sized enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel numbers fall below certain limits. However, in order to avoid the incidence of spurious estimates, evidence from the ADF test conducted revealed that the variables are integrated of order two,1(2). Across all sectors, large … provide few incentives to become (or remain) active in the formal part of the economy. In Nigeria SMEs are the backbones to the economy, 97% of all businesses in Nigeria employ less than 100 employees. A study carried out by the Federal Office of Statistics shows that in Nigeria, small and medium enterprises make up 97% of the economy (Ariyo, 2005). According to the Nigeria Bureau of Statistics, small and medium scale enterprises (SMEs) in Nigeria have contributed about 48% of the national GDP in the … KeywordsStrategy, Performance, Small- to medium-sized enterprises AbstractDescribes research undertaken to evaluate the appropriateness of strategic performance measurement (PM) system development processes for small- and medium-sized enterprises (SMEs). The SME sector provides, on average, 50% of Nigeria’s employment, and 50% of its industrial output. Although smaller in size, they are the most important enterprises in the … (SMEs) on Nigeria’s economic growth performance for the sample period 1993 to 2011. theory, semistructured face-to-face and phone interviews were conducted with 8 purposively-selected leaders of SMEs in Nigeria who successfully implemented internal control practices. A survey design with 236 respondents was used to test the hypotheses. Department of National Statistics, Malaysia. [8] Arslan, A., & Staub, S. (2013). SMEs outperform their nonexporting SME counterparts by several measures. Cletus Izunwanne Emeti Abstract The paper discussed Issues, Challenges and Prospects of Small and Medium Scale Enterprises (SMEs) in Port-HarcourtCity, Nigeria. Over the years a large number of small and medium size companies have grown in the market. Every government needs to appraise its tax policies to ensure it is not detrimental to the development of the SMEs in the country (Adebisi & Gbegi, 2013). These 60 SMEs were distributed as: 20 small-scale enterprises were located in Lagos State, 20 in Anambra State and 20 in Kano State of Nigeria respectively. Data was gathered by means of structured questionnaire. Introduction The rapid development of small and medium-scale enterprises (SMEs) is one of the instruments of tackling poverty in an economy. SMEs access to formal credit, from commercial banks and leasing companies over the years has been insignificant. Keywords: Capital Market, Development, SMEs, Nigeria I. … Small medium enterprise scale (SMEs) are faced with the matter of high tax rates, performance of taxation, complex tax regulations and lack of proper enlightenment or education about tax related issues. Data were gathered from company documents and through semistructured interviews of a target population of 3 leaders of 3 SMEs from the oil and gas industry in Abuja, Kano, and Lagos in Nigeria, with a capitalization of between N5 million to N500 million. In the SME sector, we still grapple with issues such as accountability, timeliness, short … Primary data was employed and copies of ques-tionnaire were administered to respondents for the purpose of this study. This was informed by the high rate of unemployment in the society and the poor performance of SMEs in employment generation. The Microfinance Policy Regulatory and Supervisory Framework (MPRSF) was launched in 2005; the policy among other things, addresses the problem of … significantly, characterize the Nigeria SMEs. They provided foreign exchange denominated loans for procurement of machineries and raw … The case of Pakistan … Thematic analysis of 1,300 SMEs using 10 case study based on in-depth interviews with Chief Financial Officers (CFOs) representing 10 industrial sectors. … The heterogeneity of products and services from the SME sector, can transform the economy into fully industrialized and globally competitive entity that will help in … SMEs tend to be more effective in the utilization of local resources using simple and affordable technology. The Commission also found several noteworthy contrasts between exporting large firms and exporting SMEs. The key arguments of this paper were developed in line with TCE Theory. With the ever increasing … 3 technologies are easier to acquire, … In 2005, the Federal Government of Nigeria adopted microfinance as the main financing window for micro, small and medium enterprises in Nigeria. The Johansen test conducted … theories of ICT adoption have contributed to technology adoption research for decades however, they are limited in understanding how technology advances from the point of conception to a point where it is accepted or rejected leading to redefinition of problem. The most frequent upper limit designating an SME in Nigeria is 5-250 employees. An evaluation is undertaken of ten PM approaches found in the literature. SME that are larger than micro companies, and either part of or heading towards the formal economy. With the ever increasing awareness in the study of entrepreneurship there is a need for framework SMEs play a fundamental role in utilizing and adding value to local resources (URT, 2002). Based on the data collected as well as on the information collected in the in-depth interviews, important contributing factors are the structure and size of the economy and the extent of government borrowing, the degree of innovation as regards SME lending, and the state of the financial sector … This paper examined the entrepreneurship theories in restructuring small and medium enterprise (SMEs) in Nigeria as predictor catalyst of development. Both in literature and practice, poverty alleviation has always formed the nucleus of economic development policies in many developing countries- including Nigeria (Lemo, 2002). Third, we identify the most important obstacles to SME growth in Sub-Saharan Africa. This research therefore aims to explore possible benefits and barriers that SMEs in Nigeria would experience in the adoption of coopetition. and organizational performance of small and medium enterprises (SMEs) in Nigeria, The International Journal of Human Resource Management, DOI: 10.1080/09585192.2015.1033640 Data were compiled and organized, disassembled into fragments, reassembled into a sequence of groups, and interpreted for meaning. The paper examined small and medium scale enterprises in Nigeria and in relation to those challenges which affects SMEs from developing capacity to realizing its full potentials as well the prospect for improvement and development for employment generation, economic growth and national development. In Nigeria, SMEs contribute 48% of national GDP, account for 96% of businesses and 84% of employment. Mba Okechukwu Agwu and 1Dr. With their emergence and huge potential, the government of India launched regulated trading platforms for the … Despite the significant contribution of SMEs to the Nigerian economy, challenges still persist that hinder the growth and development of the sector. [7] Aris, N. M. (2007). Medium Scale Enterprises (SMEs) in Port-Harcourt City, Nigeria By 1Dr. The Theory emphasizes the ability to pay as the determinant of paying taxes (Obara & Nangih, 2017). They were Federal Government Development Banks specifically dedicated to the development of SMEs in the country. Section A was used to obtain demographic information from respondents. It is suggested therefore that invigorating SMEs with strengthened commitment to economic reform … Section B assessed the contribution of small-scale … Multiple regression results showed that human capital development and occupational health and safety had a direct relationship with NONFIN, and employee performance … We investigated the relationship between HRM practices and the financial (FIN) and non-financial performance (NONFIN) of SMEs in Nigeria. The purpose of this study is to identify general problems against the effective operation of SME in Nigeria, to know their survival strategies, to provide an overview of the role of government in financing and developing SMEs in Nigeria, to determine to what extent the government policies support or hinder their growth and also to suggest strategies through which SME’s can compete with the products of … The econometric technique adopted for the study was multiple regression method based on ordinary least squares technique. The 5 themes that emerged from the thematic analysis of the interview data were: segregation of duty; adherence to processes, policies, and procedures; staffing, training, and experience; information technology; and … Statement SMEs (Small and Medium enterprises) are one of the key drivers of India’s economic growth. theories to these SMEs, especially their heavy reliance on network relationships. Most of the poor are found in … Therefore the study is mainly guided by the theory of Transaction Cost Economics (TCE). Considering the fact that it is a relatively recent area of research, existing theories covering similar fields of study will be examined with the aim of generating a theoretical framework through which factors affecting the phenomenon in the country may emerge. Have been contributing so much towards the GDP of India or non-existence information. M. ( 2007 ) restructuring small and medium enterprise ( SMEs ) in Port-Harcourt City Nigeria! ( TCE ) of unemployment in the society and the poor performance of SMEs employment! Growth in Sub-Saharan Africa M. ( 2007 ) medium Scale enterprises ( ). Accounting or non-existence accounting information, good funds … significantly, characterize the Nigeria.... Several noteworthy contrasts between exporting large firms and exporting SMEs to respondents for the study was regression... … the most important obstacles to SME growth in Sub-Saharan Africa organized, disassembled into fragments reassembled... Using 10 case study based on in-depth interviews with Chief financial Officers ( CFOs ) representing industrial. Nigerian economy, challenges still persist that hinder the growth and development small! Smes to the Nigerian economy, challenges still persist that hinder the growth and development of developing... Tape, corruption, complex entry regulations etc also found several noteworthy contrasts between exporting large and. 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