Effect of Enterpreneur and Firm Characteristics on the Business Success of Small and Medium Scale Enterprises in North Central, Nigeria

Adamu Garba Department of Business Administration, Nasarawa State University, Keffi, Nasarawa State

ABSTRACT: This study examined the effect of entrepreneur and firm characteristics on the Business success of small and medium scale enterprises in selected States in North Central, Nigeria The researcher used primary data for the study from population of one hundred and fifty (150) registered small and medium scale enterprises in three (3) selected States in North Central, Nigeria. A questionnaire was used as the instrument of data collection. The data collected were analyzed using multiple regression analysis. Also, the hypotheses of the study were tested using the probability value of the regression estimates. The result of the regression analysis indicates that Creativity (CRT) has a positive effect on the Business success of Small and Medium Scale Enterprises in North Central Nigeria (SSM) and the effect is statistically significant (p <0.05). Self-confidence (SFC) has a negative effect on the Business success of Small and Medium Scale Enterprises in North Central Nigeria (SSM) and the effect is not statistically significant (p >0.05). Firm size (FMS) has a positive effect on the Business success of Small and Medium Scale Enterprises in North Central Nigeria (SSM) and the effect is statistically significant (p <0.05) and in line with a priori expectation. Profitability (PRF) has a positive effect on the Business success of Small and Medium Scale Enterprises in North Central Nigeria (SSM) and the effect is statistically significant (p <0.05). It was concluded that all the variables of the study except self confidence have positive and significant effect on the Business success of small and medium scale enterprises in the study area. It was recommended among other that management of the small and medium scale enterprises should ensure that all the strategies are put in place to boost the profit of the enterprise, become creative in its business approach so as to become successful

Keywords: Entrepreneur, Strategies, SMEs, Firm, North-Central, Nigeria.

I Introduction

The small and medium scale enterprises (SMEs) sector contributes highly to the country’s economy, contributing to the gross domestic product (GDP) by reducing the level of unemployment, reduction in poverty levels and promotion of entrepreneurship activity. As important as this role of small and medium scale enterprise is in the development of any country, entrepreneur and firm and firm characteristics play a very significant role in the success or otherwise of small and medium scale enterprises. The role of SMEs in the development of the country is significant. Small and medium enterprises across the globe still encounter many challenges, despite their importance and significance of small and medium enterprises and their contribution to economic growth which hinder business growth. It is obvious that hurdles in the business success are far more than it was previously. The environments, as well as some factors, are very complex and dynamic. Firm characteristics of small enterprises including ownership type, size, profitability, firm age, and sector of firm could influence the business success.

In an effort to enhance development of small and medium scale enterprises, increasing numbers of public, private and academic institutions have extended considerable support to SMEs across various sectors To make such support successful, the investigation of factors affecting success of small and medium scale enterprises has broadened from largely focusing on institutional arrangements to analyzing the effects entrepreneur and firm characteristics have on success of such small and medium enterprises. Literature indicates that entrepreneur characteristics with effects on small and medium scale enterprises success include creativity, self-confidence, gender, age, education, work experience, and managerial competence; while firm characteristics include period an SME has been in business, size of SME, profitability, source of capital, sector and location (Islam, Khan, Obaidullah and Alam, 2011).