Small and Medium Scale Enterprises and Nigeria Economic Growth (Published)
Globally, small and medium-sized businesses (SMEs) are acknowledged as key contributors to economic expansion. SMEs are seen as vital components of the Nigerian economy since they contribute significantly to job creation, income generation, and poverty alleviation. However, despite all these achievements of SMEs their performance in Nigeria has been a subject of concern for several years. This study measured empirically how SMEs have affected Nigeria’s economic growth using key macroeconomic indicators as the Commercial Bank Loan, Patent Application, Trade, Value Added Tax, among others. The study employed Bound tests and Co-Integrating Regression on data collected from World Bank database, United Nations Conference on Trade and Development (UNCTAD) data statistics, CBN Statistical Bulletin and World Investment Reports (2023). The study discovered that while patent applications has a negative effect on Nigerian economic growth, loans from commercial banks, inflation, value-added tax, labour force participation, and SME trade have a favorable impact. In order to support SMEs and growth in the Nigerian economy, it was suggested that a combination of fiscal and monetary policies be used by the Nigerian government. Policymakers should streamline loan application processes, reducing bureaucratic hurdles, and improving credit scoring mechanisms. The government should also foster more public finance, private led initiatives to provide SMEs with all they need to thrive in the economy.
Keywords: Nigeria, Small and Medium Scale enterprises., economic growth
Tax Revenue and the Economy of Sub-Saharan Africa: A Systemic Analysis (Published)
Citation: Joseph Eleojo Attah , Simeon G. Nenbee and Jamilu Aliyu Wamkko (2022) Tax Revenue and the Economy of Sub-Saharan Africa: A Systemic Analysis, International Journal of Small Business and Entrepreneurship Research, Vol.10, No.1, pp.1-14
This paper examines the role of tax revenue in engineering economic growth in the Sub-Saharan Africa (SSA) region, analyzing data for 12 regional countries obtained from secondary sources such as the OECD database and World Bank World Development Indicators (WDI), covering the period 2005-2020, and analyzed using the fixed effect method, which accounts for possible heterogeneity among the SSA countries. Economic growth was measured using real gross domestic product, and tax revenue by ratio of tax revenue to GDP. The study controlled for other economic growth drivers such as trade openness, foreign direct investment, exchange rate, domestic investment and money supply. The salient findings indicate that taxation hampers the economic growth of SSA countries, and that domestic investment and favorable exchange rates promote economic growth in the SSA region, but domestic investment has a greater stimulating impact. Based on these findings, we recommend that governments of the SSA countries should implement tax cuts or expand the tax base of the local economy in order to reduce the deadweight loss of increased taxation.
Keywords: Tax Revenue, economic growth, fixed effect model, sub-Saharan Africa countries
An Evaluation of the Impact of Small and Medium Enterprises (SMES) Development on Economic Growth in Nigeria (Published)
This study evaluated the impact of small and medium enterprises development on economic growth in Nigeria. The study used aggregate asset base and aggregate capitalization of SMEs as the independent variables, while gross domestic product (proxy for economic growth) was adopted as the dependent variable. Secondary time series data were collected from the Central Bank of Nigeria Statistical Bulletin 2018, National Bureau of Statistics 2018, and National Survey of Micro Small and Medium Enterprises (MSMEs) 2013 & 2017 conducted by the Small & Medium Enterprise Development Agency of Nigeria (SMEDAN) for the period 2000 to 2018. Descriptive statistics and multiple regression analysis based on the OLS technique (with the aid of SPSS version 19) were employed as methods for data analysis. The findings show that the aggregate asset base and aggregate capitalization of SMEs have little or no significant effect on the GDP. It was also discovered that there exists a long-run relationship among the variables even though the overall regression model was not statistically significant at 5%. It was recommended amongst others that more efforts should be put in place by Government to gather enough information on SMEs through the responsible. The Federal and /State Ministries of Industry in collaboration with SMEDAN should work out strategies for reporting the operations of SMEs in Nigeria, highlighting the asset base and aggregate capitalization of the sector and put in places policies to resuscitate the sector.
Keywords: Capitalization, Small and Medium Enterprises, asset base, economic growth
Investment Climate, Domestic Private Investment, and Economic Growth in Sub-Saharan Africa (Published)
The environment in which an enterprise operates influences its performance. This paper investigates the relationship among investment climate, private domestic investment and economic growth in 44 sub-Saharan Africa countries over the period 2004-2015. It uses eight indicators of Doing Business and a set of control variables. Although the results show a robust link among investment climate indices, domestic private investment and economic growth, however, getting electricity, tax and registering business indices had negative effects on economic growth. This finding suggests that government and policymakers should ensure a functioning and enabling investment climate, complimented by strong competitive policies and measures in order to promote private domestic investment for positive economic growth in sub-Saharan Africa countries.
Keywords: Doing Business, Domestic Investment, Investment Climate, Transaction Cost, economic growth
Implications of Small and Medium Enterprises on South East Development in Nigeria (Published)
There has been a growing concern on the relationship between the output of small and medium enterprises and Igbo development in Nigeria, despite the fact that the South East government had embarked on several policies aimed at improving the growth of Nigerian economy through the contribution of small and medium enterprises output. The aim of this study is to empirically examine the relationship between small and medium enterprises output and Igbo development in South Eastern part of Nigeria. Empirical evidence from the developed and developing economies has shown that small and medium enterprises have the capacity to influence the entire socio economic development in Igbo land if it is well managed. Quantitative research design and multiple regressions were used to carry out this study. The results of the study indicates that small and medium enterprises contribute significantly to the development of Igbo land based on the magnitude and the level of significance of the coefficient and p-value. And there is significant and positive relationship between Igbo development and small and medium enterprises output. The implication of this findings is that if small and medium enterprises does not increase the size of their employment generation in Igbo land, the development of Igbo’s through small and medium enterprises will not contribute meaningfully to the growth of Nigerian economy. It is the recommendation of this study that the operators of small and medium enterprises in South East (Igbo Land) Nigeria should make maintain their level of social corporate responsibility. That there is also need to strengthen policies that will enhance rapid growth and development in Igbo land through small and medium enterprises in Nigeria
Keywords: Igbo Development, Output, SMEs, South-East, economic growth
Implication of Savings and Investment on Economic Growth in Nigeria (Published)
There is large empirical literature which examines the implications of savings and investment on economic growth in Nigeria. However, little attention has been given to examining the implications of savings and investment on economic growth in Nigeria. The aim of this paper is to evaluate the implications of savings and investment on economic growth in Nigeria using ordinary least square regression. Results for ADF and PP unit root tests show that all variables under consideration are I(1). The study also revealed that there is long run relationship between savings, investment and economic growth in Nigeria. The result of the regression indicates that change in gross domestic savings movements has negative and significant effect on the change in economic growth in Nigeria and that the change in gross domestic investment has positive and significant effect on the change in the Nigerian economic growth. We therefore recommend that government should set a sound and fertile environment in order to foster domestic saving that will help to increase the level of economic growth in Nigeria.
Keywords: ADF, Investment, PP., Savings, economic growth
Striving To Become an Entrepreneurial University to Bridge the Gap between Knowing and Doing: A Study on Al-Zaytoonah Universiy of Jordan (Published)
In the age of technology and knowledge communities, labor and capital are no longer considered the main production factors. Knowledge and human capital are becoming exceedingly important in strengthening the economic growth and development. Universities are one of the leading resources for knowledge generation. Research is considered one of the pillars universities rely on promoting its faculty, renewing its license or even gaining international accreditation. With all published researches, a gap between this knowledge and practicing it is becoming increasingly noticeable. This gap is called the Knowing-Doing-Gap. To reduce this gap, researchers and universities worked on setting a framework to ensure that part of the knowledge generated is applied and practiced in the market. Such universities are called “Entrepreneurial Universities”. This paper explores the definition of entrepreneurial universities and the conditions for becoming an entrepreneurial university (on both macro and micro levels). Furthermore, the paper sheds light on the steps taken by Al-Zaytoonah University of Jordan striving to become an entrepreneurial university through bridging the gap between knowledge and application. The paper answers the following question: “What steps is Al-Zaytoonah taking to address the knowing-doing-gap?”
Keywords: Entrepreneurial University, Jordan, Knowing Doing Gap, Knowledge, Learning, economic growth
Relationship between Financial Inclusion and Economic Growth in Nigerian Rural Dwellers (Published)
Financial inclusion as the provision of a broad range of high quality financial products such as savings, credit, insurance, payments and pensions, which are relevant, appropriate and affordable for the entire adult population especially the low income segments of the economy. This study critically examines the sustainability of financial inclusion to rural dwellers in Nigeria using descriptive study and content analysis. The study observed that the sustainability of financial inclusion to rural dwellers in Nigeria remains the mainstream for economic growth in any country. The implication of this study is that economy cannot grow fast without proper implementation of financial inclusion to rural areas in Nigeria. The study recommended that the promotion of collaboration between Deposit Money Banks (DMBs), Microfinance Banks (MFBs) and Communication services providers for enhanced intermediation of financial services should be encouraged; there is need to educate rural dwellers on the importance of banking as it would facilitate the success of CBN financial inclusion policy and that since some of the rural dwellers preferred to keep money under their pillows at home, there should be proper enlightenment to change their orientation on financial inclusion in Nigeria.
Keywords: Credit, Financial Inclusion, Rural Dweller, Savings, 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