Tag Archives: Small and Medium Enterprises

An Appraisal of Nigeria’s Micro, Small and Medium Enterprises (MSMES): Growth, Challenges and Prospects (Published)

This paper took a critical appraisal of the Micro, Small and Medium Enterprises (MSMEs) in Nigeria. The major focus of this work was to expatiate on the growth, challenges and prospects of the MSMEs in the country. While attempting to give an appropriate definition for Micro, Small and Medium Enterprises using employment strength and asset base criteria, the work revealed that SMEs contribute significantly to economic development in the provision of goods and services, creation of employment and contribute to a high standard of living. There are some setbacks facing the over 17,284,671 Micro, Small and Medium Enterprises in Nigeria. These setbacks include; limited financing, lack of action plan to deal with eventualities, lack of managerial and marketing skill, and lack of research appreciation and technical expertise. The study concluded that entrepreneurship is regarded as the catalyst in most developing economies and that it is very crucial to the economic growth and development of Nigeria. As such, it was recommended that government policies should support the establishment, nurturing and growth of SMEs by curtailing or banning importation of certain products, training of young entrepreneurs, establishment of Centers for Entrepreneurial Development and promoting entrepreneurial spirit through the provision of conducive entrepreneurial environment, funding and empowerment programmes. This will facilitate the training and retraining of entrepreneurs and also help Nigerian youths to develop interest in entrepreneurship.

Keywords: Economic Development, Micro, Nigeria, Small and Medium Enterprises, Technical Expertise

Personal Goals as an Antecedent to Firm Performance in Small and Medium Enterprises in Eldoret Municipality A Quantitative Analysis Approach (Published)

Small and Medium firms generated over half of gross domestic product and employment in all sectors. They are also a major source of innovation in creating new products technologies and services. The main objective of this study was to assess the relationship of personal goals and performance of SMEs. The study adopted explanatory survey study design. A sample of 600 was drawn from a target population of 1200 SMEs in Eldoret Municipal Council, USANi Gish County using simple random technique. The study employed quantitative methods of data collection. Data was collected through the use of questionnaires and interview schedule. The data obtained were analyzed using inferential statistics like (ANOVA), Independent sample t test, Chi square, Pearson product moment correlation and multiple regression methods. The statistical methods were used to assess the relationship between the variable under study. From the study the variable was found to strongly influence performance of SMEs personal goals (r=-035, p>0.01) were positively correlated to the firm performance. The whole Cronchbah reliability was 0.935. From this study findings adjusted (R2 = .665) showed that all the predictors account for 66.5% variation for performance of SMEs. This study contributes to body of knowledge, theory development and further research in performance of SMEs.

Keywords: Firm Performance, Personal Goals, Small and Medium Enterprises

Financing Constraints of Small and Medium Enterprises in South-Western Nigeria (Published)

This study focused on the investigation of the financing constraints of small and medium enterprises in South- Western Nigeria. The study determined how high bank changes, high legal documentation fees and collateral securities are related to financing constraints for small and medium enterprises in south- western Nigeria. The study was carried out using a quantities methodology through administration of a structured questionnaire. The data gathered was analyzed using descriptive and inferential statistics such as percentages, correlation analysis and multiple regression, with the aid of statistical package for social science (SPSS) version 20 with a cut off set a p= 0.05 level of significance. The study was conducted in six states of south – west Nigeria that is Lagos, Ogun, Oyo, Osun, Ondo and Ekiti. The result show that high bank charges constitute financing constraint since p-value is < 0.05; there is no significance evidence to conduct that high legal documentation fees is a constraint to financing small and medium enterprises since p-value is > 0.05 and there is positive but weak relationship between collateral securities and financial constraint of small and medium enterprises in south-west Nigeria. This study has contributed to literature on financing constraints of small and medium enterprises

Keywords: Financing, Financing Constraints, Small and Medium Enterprises

An Appraisal of Nigeria’s Micro, Small and Medium Enterprises (MSMES) (Published)

This paper took a critical appraisal of the Micro, Small and Medium Enterprises (MSMEs) in Nigeria. The major focus of this work was to expatiate on the growth, challenges and prospects of the MSMEs in the country. While attempting to give an appropriate definition for Micro, Small and Medium Enterprises using employment strength and asset base criteria, the work revealed that SMEs contribute significantly to economic development in the provision of goods and services, creation of employment and contribute to a high standard of living. There are some setbacks facing the over 17,284,671 Micro, Small and Medium Enterprises in Nigeria. These setbacks include; limited financing, lack of action plan to deal with eventualities, lack of managerial and marketing skill, and lack of research appreciation and technical expertise. The study concluded that entrepreneurship is regarded as the catalyst in most developing economies and that it is very crucial to the economic growth and development of Nigeria. As such, it was recommended that government policies should support the establishment, nurturing and growth of SMEs by curtailing or banning importation of certain products, training of young entrepreneurs, establishment of Centers for Entrepreneurial Development and promoting entrepreneurial spirit through the provision of conducive entrepreneurial environment, funding and empowerment programmes. This will facilitate the training and retraining of entrepreneurs and also help Nigerian youths to develop interest in entrepreneurship.

Keywords: Economic Development, Micro, Nigeria, Small and Medium Enterprises, Technical Expertise

The Role of Legal/Regulatory Framework of the Ghana Public Procurement Policy on SME Participation in Public Procurement (Published)

Access to public procurement contracts is a challenge for most Small and Medium Enterprises. While most of these challenges are either inherent in the very nature of SMEs or the business environment, there is however a major challenge inherent in government policies which is often ignored, and this is the focus of this study. The study thus seeks to identify the inadequacies in the Public Procurement Act of Ghana that inhibit SME access to public procurement contracts and how supportive legal framework could improve SME access to public procurement opportunities. The researcher used a combination of exploratory and descriptive research approaches and the sample comprised of one hundred and twenty (120) SMEs, purposively sampled for their eligibility to participate in public procurement processes and thirty (30) randomly selected public sector institutions. Primary data was collected through the administration of survey questionnaires, and the data collected was analyzed both quantitatively qualitatively. A major finding is that while the intent of the Ghana Act (Act 663) section 2(t) is to promote local businesses, the provision is administratively disproportionate as it does not take the peculiar characteristics of size, capacity, experience, and financial resources of the SMEs into consideration and so does not provide a level playing field for the different categories of local businesses. It can be concluded that limitations in the procurement and regulatory framework in terms of disproportionate application of requirements affect SME participation and success in winning public procurement contracts and that governments can influence the nature and pace of SME growth through the differential impact of government legislation on firms of different sizes.

Keywords: Legal and Regulatory Framework, Public Procurement, Small and Medium Enterprises

Telecommuting Model for Small and Medium Enterprises (SMES) In Kenya (Published)

The aim of this study was to use adaptive structuration theory as a tool to come up with Telecommuting model that can be adopted by SMEs in Kenya. A survey was done to understand the extent of telecommuting and the available technological tools in the Kenyan SMEs. Data from this survey indicates that most of the workers have reliable and fast internet access away from the office and reliable information support team. These employees also reported improvement in quality and efficiency in terms of service delivery. This was attributed to the time available to concentrate on their tasks unlike in the office where there could be interruptions or meetings. A representative microfinance was chosen to understand the organizational structure and the information technology infrastructure available in a typical Kenyan SME. Results showed that the SME had both the IT infrastructure and personnel in place. Based on these findings, an AST derived model was developed and tested. Our study shows that adoption of the developed AST derived telecommuting model could lead to increased productivity, efficiency and quality of work. Findings from this study would assist stakeholders use the available infrastructure and personnel to allow formal telecommuting.

Keywords: Adaptive Structuration Theory, Cloud Computing, Small and Medium Enterprises, Telecommuting

An Appraisal of Nigeria’s Micro, Small and Medium Enterprises (MSMES): Growth, Challenges and Prospects. (Published)

This paper took a critical appraisal of the Micro, Small and Medium Enterprises (MSMEs) in Nigeria. The major focus of this work was to expatiate on the growth, challenges and prospects of the MSMEs in the country. While attempting to give an appropriate definition for Micro, Small and Medium Enterprises using employment strength and asset base criteria, the work revealed that SMEs contribute significantly to economic development in the provision of goods and services, creation of employment and contribute to a high standard of living. There are some setbacks facing the over 17,284,671 Micro, Small and Medium Enterprises in Nigeria. These setbacks include; limited financing, lack of action plan to deal with eventualities, lack of managerial and marketing skill, and lack of research appreciation and technical expertise. The study concluded that entrepreneurship is regarded as the catalyst in most developing economies and that it is very crucial to the economic growth and development of Nigeria. As such, it was recommended that government policies should support the establishment, nurturing and growth of SMEs by curtailing or banning importation of certain products, training of young entrepreneurs, establishment of Centers for Entrepreneurial Development and promoting entrepreneurial spirit through the provision of conducive entrepreneurial environment, funding and empowerment programmes. This will facilitate the training and retraining of entrepreneurs and also help Nigerian youths to develop interest in entrepreneurship.

Keywords: Economic Development, Micro, Nigeria, Small and Medium Enterprises, Technical Expertise

Challenges and Obstacles That Small And Medium Enterprises Face In Terms Of Financing in Palestine (Published)

The purpose of the study attempts to analyze the obstacles and challenges that face small and medium enterprises in Palestine. This study seeks to look at the importance of small and medium enterprises, and to identify the most important constraints faced by small entrepreneurs in obtaining the required funding in Palestine, and what are the most important impediments toward financing of small projects. The investigation helped in identifying the major challenges of financing small and medium business and what to do in order to overcome these obstacles. It was also found that small enterprises are one of the most important key elements in achieving economic development in all countries of the world where it accounts for the highest percentage among all kinds of economic projects of all sizes. A qualitative closed-ended survey was carried out for collecting data from managers and owners of 35 businesses in Palestine. The responses of 28 statements were collected in five different categories. The findings showed that the Obstacles facing the growth of small enterprises in Palestine by respondents was “Weakness of representative organizations that defend the interests of small businesses, as well as Lack of legal frameworks and incentives for small businesses

Keywords: Challenges, Financing, Palestine, Small and Medium Enterprises

Microfinance and Business Growth of Women Small and Medium Enterprises’s In Rwanda. (A Case of Selected Women Small and Medium Enterprises in Kicukiro District) (Published)

The purpose of this study was to examine the extent to which Micro Finance contributes to the growth of Women Small and Medium Enterprises (SME) in Rwanda because despite improved access to credit by SMEs overtime, SMEs have continued to suffer financial challenges. The Women SMEs have registered a low return on capital employed, low net profit margin and kept a small capital size and some of them fail to run their daily operations because they do not have the capacity to maintain adequate liquidity levels. As such, the relationship between the MFIs and Women SME keeps on deteriorating due to failure to fulfil their loan obligations. The researcher used descriptive method of study based on qualitative and quantitative approach in order to get better analysis of the study. The population size was 884 out of which 275 were taken as sample size. Both primary and secondary data collection tools with their relevant tools like questionnaire and documentary analysis in order to come up with required data. In the findings it was established that Microfinance institutions provide many different services like loan, advice on investment, savings and training on investment to women SMEs in Kicukiro district. MFI also supports different sectors ranging from Agricultural sector, trading sector, crafts, Agro processing, services like catering, construction, production/ manufacturing, education, Textile and Fabric and many others. It indicates that business performance before micro finance loan was fair which means that the entrepreneurs needed microfinance loan in order to promote business performance. In spite of the challenges of small and medium enterprises face like high interest rate, lack of collateral, the research findings indicate that microfinance improved business performance inform of capital base increase, profitability increase, growth in size and expansion in size. This justifies the role of microfinance in socio economic development especially in the developing world hence women entrepreneurs should embrace microfinance in order to promote their business effectively. The Pearson correlation coefficient reveals that there is a positive high relationship between Micro finance institutions and growth of Women Small and Medium Enterprise (SMEs). This is shown by the value equal to 0.811** tested at 0.01 level of significance. Consequently, it is concluded that Micro finance institutions have a positive impact on growth of selected Women Small and Medium Enterprises in Rwanda.

Keywords: Business Growth, Micro-Finance, Small and Medium Enterprises

QUANTITATIVE ANALSIS OF THE IMPACT OF SMALL AND MEDIUM SCALE ENTERPRISES ON THE GROWTH OF NIGERIAN ECONOMY: (1993-2011). (Published)

This study is on the quantitative impact of Small and medium scale enterprises (SMEs) on Nigeria’s economic growth performance for the sample period 1993 to 2011. The econometric technique adopted for the study was multiple regression method based on ordinary least squares technique. 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). The Johansen test conducted showed evidence of long run equilibrium relationship between small and medium scale enterprises and economic growth. However, in the mean time, output of SMEs (SMEO) does not make any significant contribution to Nigeria’s economic growth performance. The study concludes that poor government policies, on tariffs and incentives, bribery and corruption, non-existent entrepreneurial development centers and poor state of infrastructure act as impediments to the growth and development of SMEs in Nigeria. The recommendations are that governments at all levels should endeavor to establish Microfinance institutions for easy access to credit by SMEs, introduce financial literacy in schools, establish entrepreneurial development centers for capacity building, provide enough infrastructure, especially electricity and road net work, and finally establish agencies for control of bribery and corruption.

Keywords: Bank credit, Inflation, Interest rates., Small and Medium Enterprises, economic growth

A Configurational Approach of the Relationship between Information Security Management and Performance of Small and Medium Enterprises in Kenya (Review Completed - Accepted)

Enterprises corresponding to a backbone of a modern society recognize information security management (ISM) as one of business management factors.Companies suffer significant financial and reputational damage due to ineffective information security management, severely impacting their performance and market valuation. Information security is vital for protecting important assets of organizations, including the information resources and the organization’s reputation. SMEs have the capacity to achieve rapid economic growth and in Kenya they employ about 85 percent of the Kenyan workforce. The need to link ISM with performance has become especially important for firms striving to achieve superior performance. However, there have been little documented evidences that existed for specific relationships between ISM and SME performance. To better understand this relationship, this paper takes a holistic approach guided by a cross-sectional research design. Using the hierarchical and moderated multiple regression (MMR) analyses, the theoretical models and hypotheses in this study were tested based on empirical data gathered from 94 SMEs that participated in the 2013 Top 100 Survey. The results revealed that entrepreneurial orientation significantly moderated the relationship between information security management and performance of SMEs. This study will enhance the skill set in Kenyan SMEs, producing a more sustainable solution, as well as contributing to the open literature.

Keywords: Information Security, Information Security Management, SME Performance, Small and Medium Enterprises, economic growth

QUANTITATIVE ANALSIS OF THE IMPACT OF SMALL AND MEDIUM SCALE ENTERPRISES ON THE GROWTH OF NIGERIAN ECONOMY: (1993-2011). (Review Completed - Accepted)

This study is on the quantitative impact of Small and medium scale enterprises (SMEs) on Nigeria’s economic growth performance for the sample period 1993 to 2011. The econometric technique adopted for the study was multiple regression method based on ordinary least squares technique. 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). The Johansen test conducted showed evidence of long run equilibrium relationship between small and medium scale enterprises and economic growth. However, in the mean time, output of SMEs (SMEO) does not make any significant contribution to Nigeria’s economic growth performance. The study concludes that poor government policies, on tariffs and incentives, bribery and corruption, non-existent entrepreneurial development centers and poor state of infrastructure act as impediments to the growth and development of SMEs in Nigeria.  The recommendations are that governments at all levels should endeavor to establish Microfinance institutions for easy access to credit by SMEs, introduce financial literacy in schools, establish entrepreneurial development centers for capacity building, provide enough infrastructure, especially electricity and road net work, and finally establish agencies for control of bribery and corruption.

Keywords: Bank credit, Inflation, Interest rates., Small and Medium Enterprises, economic growth

CRITICISMS, VARIATIONS AND EXPERIENCES WITH BUSINESS MODEL CANVAS (Published)

The objective of this study is to highlight the importance of the use of BMC to the entrepreneurs and the academic world. In pursuing this objective, the authors want to discuss the BMC problems and criticism and show its variations in order to help entrepreneurs use these models in the right way ‚and successfully plan their businesses. The shortcomings and weaknesses of the model will then be compared with experiences made in the class ‘Entrepreneurship II’ offered in a undergrad course of Business at a Brazilian university in the state of São Paulo. The experience with them highlighted the importance of the use of BMC and it was helpful in developing their business plans. The contribution of this study to the body of knowledge is to fill the vacuum that exists in terms of academic study concerning the use of Business Model Canvas by the entrepreneurs when developing their business plan as well as to advance research in the areas of small and medium enterprises

Keywords: Business Model, Business Model Canvas, Business Plan, Entrepreneurs, Small and Medium Enterprises

E-Commerce and Global Postal Network -Opportunities for Small and Medium Enterprises (Published)

This article will explain what the challenges are in the global postal network (GPN). GPN play a significant role in the global supply chain and try to fulfill the needs of SMEs while entering foreign markets. Postal operators with their networks help to facilitate international trade to deliver parcels, packages, partnering with express, courier services embracing mobile and online technologies, provide financial services etc. The few examples will be mentioned how the post can help to facilitate business for SMEs, because GPN is an integral part of the overall e-commerce today. Some innovative ideas will be presented how the national posts are trying to support especially e-business not only on the local market but also abroad.

Keywords: Barriers, E-Commerce, Global Postal Chain, Global Supply Chain, Small and Medium Enterprises