International Journal of Entrepreneurial Knowledge

Open Access Open Access  Restricted Access Subscription Access

Effect of Globalization on Small and Medium Enterprises (SMEs) Performance in Nigeria


Affiliations
1 Department of Business Administration, Olabisi Onabanjo University, Ago – Iwoye, Ogun State, Nigeria
 

This paper studies the effect of globalization on small and medium enterprises (SMEs) performance in Nigeria. The study adopts an ex post-facto type of descriptive research design. In carrying out this study, the secondary statistics data was used. Data was extracted from CBN bulletin on relevant information which depicts globalization and its effect on SMEs performance in Nigeria.A co-integration model was used to investigate the effect of globalization on SMEs performance in Nigeria. To capture the activities of globalization, three proxies were used to capture the activities of globalization; they include interest rate, bank credit and trade openness while on the other hand, output of SMEs to GDP was used to capture SMEs performance covering the period of 1992 to 2014. It was observed that interest rate, bank credit and trade openness do not improve the performance of SMEs output. The overall effect as shown by the F-statistics reveals that the variables considered in this study are not significant in explaining the level of improvement in SMEs output and performance in Nigeria.

Keywords

Globalization, SMEs, Bank Credit, Trade Openness, and Interest Rate.
User
Notifications
Font Size


  • Adeleke (2003).Strengthening small and medium scale entrepreneurship through collaborative partnership projects in Nigeria.International journal of Public – Private Partnering Sheffield University. Central bank of Nigeria, Annual report and statement of accounts various issues.

  • Adewuyi, A.O. (2004). Can Nigeria benefit from globalization?Constraints, opportunities and challenges.Nigeria economic society.

  • Agbu (2006).Globalization and the Nigeria’s economy.Nigeria Journal of International Affairs, 32(1), 32-45.

  • Aluko, S. (2004).Background to globalization and Africa’s economic development.Nigeria Economic Society.

  • Elizabeth, A., & James, A. F. (2006). The effect of globalization on the performance of Small and medium sized enterprises in the United States: Does owners’ race/ethnicity matter? AEA Papers Band Proceedings, 97(2), 368-372.

  • Hitt, M.A., Ireland, R.D., &Hoskisson (2001).Strategic management: Competitiveness and globalization.USA, South-West College publishing.

  • OECD (2004).Promoting entrepreneurship and innovative SMEs in a global economy: Towards a more responsible and inclusive globalization. Report of 2nd OCED Conference of Ministers Responsible for Small and Medium Sized Enterprise (SMEs) in Istanbul, Turkey.

  • Olayode (2006): Globalization, sustainable development and state capacity in Africa. Nigeria Journal of International Affairs,32(1), 324-342.

  • Onyeaghala, O.H.,& Anele, C.A. (2014). Globalization: effects on small-scale business development in Nigeria.International Journal of Economics, Commerce and Management, 11(5), 1-7.

  • Orunmoluyi, T. P (2000). Globalization: A millennium challenge for Nigeria banks.The Economics. 4, 31-32.

  • Sonia, J., &Rajee, k. (2009).Globalization and its impact on small scale industries in India.PCMA Journal of Business, 1(2), 135-146.

  • Tendon, Y. (1998).Globalization and African options (part one) in AAPS newsletter, Harare, African Association of Political Science. 3(1), 12-21.

  • Usman, A. (2009). Globalization and development revisited in the light of Asian Experience.Asia-Pacific Development Journal,6(2), 1-21.

  • Yusuf, J. O. (1994). Globalization and development. Washington, the World Bank.


Abstract Views: 265

PDF Views: 327




  • Effect of Globalization on Small and Medium Enterprises (SMEs) Performance in Nigeria

Abstract Views: 265  |  PDF Views: 327

Authors

Moruff Sanjo Oladimeji
Department of Business Administration, Olabisi Onabanjo University, Ago – Iwoye, Ogun State, Nigeria
Augusta Thereza Ebodaghe
Department of Business Administration, Olabisi Onabanjo University, Ago – Iwoye, Ogun State, Nigeria
Peter Babatunde Shobayo
Department of Business Administration, Olabisi Onabanjo University, Ago – Iwoye, Ogun State, Nigeria

Abstract


This paper studies the effect of globalization on small and medium enterprises (SMEs) performance in Nigeria. The study adopts an ex post-facto type of descriptive research design. In carrying out this study, the secondary statistics data was used. Data was extracted from CBN bulletin on relevant information which depicts globalization and its effect on SMEs performance in Nigeria.A co-integration model was used to investigate the effect of globalization on SMEs performance in Nigeria. To capture the activities of globalization, three proxies were used to capture the activities of globalization; they include interest rate, bank credit and trade openness while on the other hand, output of SMEs to GDP was used to capture SMEs performance covering the period of 1992 to 2014. It was observed that interest rate, bank credit and trade openness do not improve the performance of SMEs output. The overall effect as shown by the F-statistics reveals that the variables considered in this study are not significant in explaining the level of improvement in SMEs output and performance in Nigeria.

Keywords


Globalization, SMEs, Bank Credit, Trade Openness, and Interest Rate.

References





DOI: https://doi.org/10.15759/ijek%2F2017%2Fv5i2%2F190297