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Articles

Obstacles to firm performance in Nigeria: does size matter?

Pages 49-70 | Received 20 Oct 2017, Accepted 02 May 2018, Published online: 29 Jun 2018
 

Abstract

Prior studies have often treated small business in Africa as a homogeneous term thus ignoring its constituent categories. Poor infrastructure, unstable political environment, corruption, and financial constraint have been identified as some of the common obstacles facing micro, small, and medium enterprises in developing economies. With reference to Nigeria, there is paucity of information on the role of size in the perception of the above obstacles. Using the number of employees to determine size, this study attempts to bridge the gap by comparing whether there are significant differences in the perception of obstacles across firms of different sizes. The data for this study are a survey of 247 firms from 5 southern states in Nigeria. The author employed Kruskal-Wallis to test the hypotheses formulated. The findings have shown statistically significant differences on the perception of poor infrastructure and financial constraint across firm sizes. It also revealed specific obstacle(s) facing each state in southern Nigeria. The major implications of these results are that relevant authorities will be able to provide more focused interventions.

Des études antérieures ont souvent traité les petites entreprises en Afrique comme un terme homogéne, ignorant ainsi ses catégories constituantes. Les infrastructures médiocres, l’environnement politique instable, la corruption et les contraintes financiéres ont été identifiés comme quelques-uns des obstacles communs rencontrés par les Micro Petites et Moyennes Entreprises (MPME) dans les économies en développement. En ce qui concerne le Nigeria, il y a peu d’informations sur le rôle de la taille dans la perception des obstacles ci-dessus. En utilisant le nombre d’employés pour déterminer la taille, cette étude tente de combler le fossé en comparant s’il existe des différences significatives dans la perception des obstacles entre les entreprises de différentes tailles. Les données de cette étude sont une enquête auprés de 247 entreprises de 5 états du sud du Nigeria. L’auteur a utilisé Kruskal-Wallis pour tester les hypothéses formulées. Les résultats ont montré des différences statistiquement significatives sur la perception d’une infrastructure médiocre et la contrainte financiére à travers la taille des entreprises. Il a également révélé des obstacles spécifiques face à chaque état dans le sud du Nigeria. Les implications majeures de ces résultats sont que les autorités compétentes seront en mesure de fournir des interventions plus ciblées.

Notes

Notes

1 National Bureau of Statistics.

2 Percent of unpaved roads computed by the author using China, Singapore, Indonesia, Iran, Malaysia average for Asia. Botswana, South Africa, Angola, Ghana, Zimbabwe, Zambia for Sub-Saharan African.

Additional information

Notes on contributors

Obiajulu C. Ede

Obiajulu Christopher Ede is a lecturer in Economics and Business at School of Business, Law and Communications, Southampton Solent University, UK. Ede’s main research interests include SME, and teaching and learning.

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