Financial and Non-financial Performance of Small Businesses in Nigeria: An Empirical Evidence of the Role of Environmental Factors | Chapter 8 | Current Perspective to Economics and Management Vol. 1
The role small
businesses play in the economy of countries are very germane. They enhance the
growth and development of nations through massive job creation, contribution to
the Gross Domestic Product (GDP) and consequently reducing poverty and crime
rates. Despite their importance, small businesses all over the world especially
developing countries face diverse challenges that affect their performance. The
objective of this study is to investigate the environmental factors that impact
the financial and non-financial performance of small businesses. A survey
method was used to gather data from two hundred and four small business owners
and managers located in selected cities in Nigeria. Descriptive statistics and
correlation analysis were conducted to identify the relationship between
internal and external environmental factors and the performance of small businesses in Nigeria. The results of the
study reveal that inadequate finance, inadequate infrastructure and poor
managerial skills have significant and negative relationship with small
businesses' performance. Meanwhile, inadequate finance is the most significant
factor while, inadequate infrastructure is the least significant factor.
This study
emphasizes the need for favourable government policies to support small scale
businesses in easy access to finance and training. Small business owners are
advised to regularly attend workshops, training and seminars for skills update.
Government is also implored to fix dilapidated infrastructure in the country.
In the case of this study revealed, inadequate infrastructure least affects
MSEs performance. This appears to be the availability of substitutes for many
infrastructural deficits. For example, there is no stable electricity in
Nigeria, but most MSEs can afford at least a small generator popularly called
"I pass my neighbour" to power their businesses. Also it is scarce to
get pipe borne water, but many alternative exists e.g. bottled water, sachet
water, buying water in large quantity from private borehole water suppliers or
fetching from wells.
Author(s) Details
Olakunle Jayeola
Department of Business Administration, Faculty of Social and Management Sciences, Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria.
Department of Business Administration, Faculty of Social and Management Sciences, Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria.
Akintan Akinyemi Akindele
Department of Business Administration, Rufus Giwa Polytechnic, PMB 1019, Owo , Ondo State, Nigeria.
Department of Business Administration, Rufus Giwa Polytechnic, PMB 1019, Owo , Ondo State, Nigeria.
Akinnigbagbe, Victor Makinde
Department of Social sciences. Rufus Giwa Polytechnic, PMB 1019, Owo, Ondo State, Nigeria.
Department of Social sciences. Rufus Giwa Polytechnic, PMB 1019, Owo, Ondo State, Nigeria.
Read full article: http://bp.bookpi.org/index.php/bpi/catalog/view/26/80/172-1
View Volume: https://doi.org/10.9734/bpi/cpem/v1
View Volume: https://doi.org/10.9734/bpi/cpem/v1
Comments
Post a Comment