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Entrepreneurial Strategies and Small and Medium Scale Enterprises (SMEs) Development in Ogun State, Nigeria

Received: 20 May 2017     Accepted: 2 June 2017     Published: 25 July 2017
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Abstract

This study empirically examined entrepreneurial strategies and small and medium scale enterprises (SMEs) development in Ogun State, Nigeria considering they have increasingly become a powerful engine for economic growth and development in today’s dynamic and competitive business environment. Entrepreneurial strategies was measured using competitive strategy, human resource strategy, while SME development was measured by return on investment, employee productivity The population of the study considered was two thousand four hundred and twenty five (2425) employees and a sample size of four hundred and forty six respondents were determined using Taro Yamane formula for sample size. A structured questionnaire titled ‘Entrepreneurial Strategies and Small and Medium Scale Enterprises (SMEs) Development in Ogun State, Nigeria’ was validated and administered with ninety one point nine percent response rate. Cronbach Alpha reliability for major constructs had an average value of 0.83. The data collected was analysed using linear and multiple regression analysis. Findings reveal there is a positive and significant relationship between entrepreneurial strategies and SME development (R = 0.535, at p < 0.05). The model R2 (coefficient of determination) was 0.287, constant value (alpha) of 44.670, the coefficient of independent variable (beta = 0.491) and F-Value yielded 163.890. Competitive strategy had significant effect on return on investment and this effect was statistically significant at (R = 0.400, R2 = 0.160, p < 0.05, B = 0.360, F = 77.727). There is also a significant and positive relationship between human resource strategy and employee productivity (R = 0.4429, R2 = 0.184, p < 0.05, B = 0.385, F = 91.833). In conclusion, entrepreneurial strategies have a strong positive relationship on the development of SMEs in Ogun State, Nigeria. The adoption of these strategies is germane for SMEs to enable them in the midst of intense competition for their firms to still be sustained, survive and grow consistently. The study has recommended that SMEs should adopt entrepreneurial strategies to enable them increase their returns on investment, employee productivity, which when engaged in their firms enhances SME development.

Published in International and Public Affairs (Volume 1, Issue 1)
DOI 10.11648/j.ipa.20170101.15
Page(s) 34-38
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Entrepreneurial Strategies, Competitive Strategy, Human Resource Strategy, SME Development, Employee Productivity

References
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[2] SMEDAN. (2012). Survey report on micro, Small and Medium Enterprises (MSMEs) in Nigeria. 2010 National MSME collaborative survey. Collaboration between National Bureau of Statistics (NBS) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). May 2014. http://www.smedan.gov.ng/images/collaborative%20survey%20report.smedan nbs.pdf.
[3] Abubakar, S. G. (2010). Refocusing education system towards entrepreneurship development in Nigeria: A tool for poverty eradication. European Journal of Social Sciences, 15 (1), 140-150.
[4] Akingbolu, R. (2014). "Why 70% of SMEs in Nigeria fail expert," Retrieved from http:www.thisdaylive.com/articles/why-70% of-smes-fail-innigeriaexperts/71911.
[5] Okezie, A. I., Odii, A. & Njoku, A. C. (2013). Challenges and prospects of entrepreneurship in Nigeria. Academic Journal of Interdisciplinary Studies. 2(5) 25-36.
[6] Mwangi, W. & Omhui, K. (2013). Effects of competitive strategies on the performance of mission hospitals in Kenya (A Case of Kijabe Mission Hospital). International Journal of Science and Research. 2(11), 14-19.
[7] Awan, A. G. & Hashmi, S. (2014). Marketing practices of Small & Medium size enterprises: A case study of SMEs in Multan District., European Journal of Business and Innovation Research. 2(6), 54-60.
[8] Ibidunni, O. S., Iyiola, O. O. & Ibidunni, A. S. (2014). Product innovation, A survival strategy for Small and Medium Enterprises in Nigeria. European Scientific Journal. 10(1), 194-209.
[9] Porter, M. E. (1996). What is strategy?. Harvard Business Review.
[10] Nzelibe, C. G. O. (1996). Entrepreneurship and Management of Small-Scale Business. Enugu: Optional Publishers
[11] Thomas, M. A. (1996). What is a human resources strategy? Health Manpower Management Journal. 22(2), 4–11.
[12] Gwavuya, F. (2011). Leadership influences on turnover intentions of academic staff in institutions in Zimbabwe. Academic Leadership Journal, 9 (1), 1-15.
[13] Kyndt, E., Dochy, F., Michielsen, M. & Moeyaert, B. (2010). Employee retention: Organisational and personal perspectives. Journal of Vocations and Learning. 2(1), 195-215.
[14] Yamane, T. (1967). Statistics: An introductory analysis (2nd Ed.). New York: Harper & Row.
[15] Oyedijo, A. (2012). Competitive strategy orientations of small and medium business owners and their performance impacts: The case of paint manufacturing SMEs in South-Western Nigeria. Business and Management Review. 1(12), 10 – 18.
[16] Knoskova, L. (2015). Innovation Processes and Entrepreneurial Culture for Radical Innovations. Amfiteatru Economic. 17(38), 342-357.
[17] Asiedu-Appiah, F., Aduse-Poku, O. & Abeeku-Bamfo, B. (2013). An investigation into recruitment and selection practices of Small and Medium Enterprises: Evidence from Ghana. Global Advanced Research Journal of Management and Business. 2(3), 175-188.
[18] Baffoe, R. S (2016). Employee Recruitment And Selection Practices By Small And Medium Sized Enterprises Within The Madina Metropolis In The La Nkwantan/Madina Municipality Of The Greater Accra Region Of Ghana. International Journal of Economics, Business and Finance. 4(3), 1-21.
[19] Bourletidis, K. (2013). The strategic management of market information to SMEs during economic crisis. Procedia – Social and Behavioral Sciences. 7(3), 598-606.
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  • APA Style

    Akhamiokhor Sunday, Adanikin Ariyo. (2017). Entrepreneurial Strategies and Small and Medium Scale Enterprises (SMEs) Development in Ogun State, Nigeria. International and Public Affairs, 1(1), 34-38. https://doi.org/10.11648/j.ipa.20170101.15

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    ACS Style

    Akhamiokhor Sunday; Adanikin Ariyo. Entrepreneurial Strategies and Small and Medium Scale Enterprises (SMEs) Development in Ogun State, Nigeria. Int. Public Aff. 2017, 1(1), 34-38. doi: 10.11648/j.ipa.20170101.15

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    AMA Style

    Akhamiokhor Sunday, Adanikin Ariyo. Entrepreneurial Strategies and Small and Medium Scale Enterprises (SMEs) Development in Ogun State, Nigeria. Int Public Aff. 2017;1(1):34-38. doi: 10.11648/j.ipa.20170101.15

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  • @article{10.11648/j.ipa.20170101.15,
      author = {Akhamiokhor Sunday and Adanikin Ariyo},
      title = {Entrepreneurial Strategies and Small and Medium Scale Enterprises (SMEs) Development in Ogun State, Nigeria},
      journal = {International and Public Affairs},
      volume = {1},
      number = {1},
      pages = {34-38},
      doi = {10.11648/j.ipa.20170101.15},
      url = {https://doi.org/10.11648/j.ipa.20170101.15},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ipa.20170101.15},
      abstract = {This study empirically examined entrepreneurial strategies and small and medium scale enterprises (SMEs) development in Ogun State, Nigeria considering they have increasingly become a powerful engine for economic growth and development in today’s dynamic and competitive business environment. Entrepreneurial strategies was measured using competitive strategy, human resource strategy, while SME development was measured by return on investment, employee productivity The population of the study considered was two thousand four hundred and twenty five (2425) employees and a sample size of four hundred and forty six respondents were determined using Taro Yamane formula for sample size. A structured questionnaire titled ‘Entrepreneurial Strategies and Small and Medium Scale Enterprises (SMEs) Development in Ogun State, Nigeria’ was validated and administered with ninety one point nine percent response rate. Cronbach Alpha reliability for major constructs had an average value of 0.83. The data collected was analysed using linear and multiple regression analysis. Findings reveal there is a positive and significant relationship between entrepreneurial strategies and SME development (R = 0.535, at p 2 (coefficient of determination) was 0.287, constant value (alpha) of 44.670, the coefficient of independent variable (beta = 0.491) and F-Value yielded 163.890. Competitive strategy had significant effect on return on investment and this effect was statistically significant at (R = 0.400, R2 = 0.160, p 2 = 0.184, p < 0.05, B = 0.385, F = 91.833). In conclusion, entrepreneurial strategies have a strong positive relationship on the development of SMEs in Ogun State, Nigeria. The adoption of these strategies is germane for SMEs to enable them in the midst of intense competition for their firms to still be sustained, survive and grow consistently. The study has recommended that SMEs should adopt entrepreneurial strategies to enable them increase their returns on investment, employee productivity, which when engaged in their firms enhances SME development.},
     year = {2017}
    }
    

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  • TY  - JOUR
    T1  - Entrepreneurial Strategies and Small and Medium Scale Enterprises (SMEs) Development in Ogun State, Nigeria
    AU  - Akhamiokhor Sunday
    AU  - Adanikin Ariyo
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    DO  - 10.11648/j.ipa.20170101.15
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    UR  - https://doi.org/10.11648/j.ipa.20170101.15
    AB  - This study empirically examined entrepreneurial strategies and small and medium scale enterprises (SMEs) development in Ogun State, Nigeria considering they have increasingly become a powerful engine for economic growth and development in today’s dynamic and competitive business environment. Entrepreneurial strategies was measured using competitive strategy, human resource strategy, while SME development was measured by return on investment, employee productivity The population of the study considered was two thousand four hundred and twenty five (2425) employees and a sample size of four hundred and forty six respondents were determined using Taro Yamane formula for sample size. A structured questionnaire titled ‘Entrepreneurial Strategies and Small and Medium Scale Enterprises (SMEs) Development in Ogun State, Nigeria’ was validated and administered with ninety one point nine percent response rate. Cronbach Alpha reliability for major constructs had an average value of 0.83. The data collected was analysed using linear and multiple regression analysis. Findings reveal there is a positive and significant relationship between entrepreneurial strategies and SME development (R = 0.535, at p 2 (coefficient of determination) was 0.287, constant value (alpha) of 44.670, the coefficient of independent variable (beta = 0.491) and F-Value yielded 163.890. Competitive strategy had significant effect on return on investment and this effect was statistically significant at (R = 0.400, R2 = 0.160, p 2 = 0.184, p < 0.05, B = 0.385, F = 91.833). In conclusion, entrepreneurial strategies have a strong positive relationship on the development of SMEs in Ogun State, Nigeria. The adoption of these strategies is germane for SMEs to enable them in the midst of intense competition for their firms to still be sustained, survive and grow consistently. The study has recommended that SMEs should adopt entrepreneurial strategies to enable them increase their returns on investment, employee productivity, which when engaged in their firms enhances SME development.
    VL  - 1
    IS  - 1
    ER  - 

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Author Information
  • Department of Business Administration and Marketing, Babcock University, Ilishan Remo, Nigeria

  • Department of Business Administration and Marketing, Babcock University, Ilishan Remo, Nigeria

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