Entrepreneurial Expertise, Size of Business and Performance of SMEs in Nigeria

Abstract

The study addresses the persistent challenges faced by small and medium enterprises (SMEs) in Nigeria, focusing on solutions that do not rely solely on government intervention. By employing survey and interview methods, data was collected through questionnaires distributed to a representative sample selected via multistage random sampling. The Chi-Square technique was utilized in the analyses of the data of the study. The results of the analyses reveal that both the size of business and entrepreneurial expertise have significant effect on business performance. Interestingly, while the entrepreneur's mentality was found not to have effect on business performance from the result of the Chi-square analysis, insights from interviews indicate it actually has a significant effect on business performance in Nigeria. The study concludes that while the size of business is a vital indicator of business performance, factors such as entrepreneurial expertise and mindset are key determinants of business performance in Nigeria. To enhance the success of SMEs, the study advocates for support mechanisms that go beyond the traditional loans, including the provision of technical expertise, the facilitation of mergers and acquisitions, equity investment in SMEs, the establishment of Trusts that can effectively scale and manage promising SMEs, and other strategies that could aid in business expansion.