Manufacturing SMEs and Macroeconomic Indicators: Empirical Evidence from Nigeria

Journal Title: Quarterly Journal of Business Studies - Year 2014, Vol 1, Issue 1

Abstract

Small and Medium Enterprises (SMEs) have been shown to be relevant in sustaining desirable macroeconomic indicators in many economies. This aroused the curiosity to examine the manufacturing SMEs in relation to selected macroeconomic indicators and, thus, contribute to literature and the quest for appropriate SME sector-oriented policies and programmes in Nigeria. The study employed empirical method of analysis on secondary data via a time series research design. Data were sourced from the Statistical Bulletin of the Central Bank of Nigeria (CBN) and the Annual Abstract of Statistics of the National Bureau of Statistics (NBS). Hence, the SMEs considered were those whose contributions to the selected macroeconomic indicators were published in the data sources. The analysis was anchored on an analytical model that expressed economic growth indicator (GDP) in terms manufacturing SMEs‟ contributions to employment (MSCEMP), gross domestic product (MSSGDP) and exports (MSCEXP). From the proposition of no significant effects of the contributions, the SMEs were analysed in the relation to the indicators. Results showed that while the SMEs made positive contributions to the indicators, significance was established only for SGDP at the 0.05 level of significance (p-value 0.0167). However, significance was also established for aggregate effect of the SMEs‟ contributions to the indicators as evidenced by the F-statistic p-value of 0.001347. Further, the model proved good fit at 87.9% explanatory power as evidenced by the R-Squared of 0.879486. The study concluded manufacturing SMEs are sine qua non for sustaining desirable macroeconomic indicators in Nigeria. Consequently, the study emphasised the need for the SMEs to be more export-oriented to drive international markets penetration and global competitiveness. The study also recommended appropriate SME-oriented policies and programmes to drive sustainable growth, development, favourable balances of trade and payments to foster international liquidity.

Authors and Affiliations

Ganiyu Biodun Bakare

Keywords

Related Articles

Ecotourism Industry in Ilijan Batangas City, Philippines: Assessing Its Effects as a Basis of Proposed Tourism Development Plan

Ecotourism is seen as a potential vehicle to provide environmental, socio-economic and cultural beliefs at both local and national levels. This study was conducted to assess the effects of ecotourism industry in Ilijan,...

The Impact of Social Media Marketing during Mega Sports Events –an Empirical Study in the Frame of the FIFA World Cup 2014

Throughout the past decade the rapid proliferation and widespread adoption of social media for marketing purposes can be observed across all technological and digital touch points. This paper focuses on the implementat...

Identifying the Attractiveness Factors of Kish Island's Shopping Centers: With an Approach to Categorization of Customers

Nowadays shopping centers are among the most competitive activities in the country. Therefore, the managers of these centers usually seek to attract potential shoppers towards themselves through identifying the attract...

Relationship between Employee Empowerment and Customer Satisfaction in the Melli Banks of Isfahan Province

Rapid environmental changes threat the survival of many organizations. Global economy is driven by regional economic impact and information technology, new media, free consumer culture, emerging global standards and th...

King’s Choice: Case of Wanda Group’s Strategy and Overseas Development

2012 for the real estate business is a crucial year. Affected by the downturn in the domestic market as well as factors such as policy control, Chinese real estate companies began to shift its strategic focus. China's f...

Download PDF file
  • EP ID EP28500
  • DOI -
  • Views 276
  • Downloads 10

How To Cite

Ganiyu Biodun Bakare (2014). Manufacturing SMEs and Macroeconomic Indicators: Empirical Evidence from Nigeria. Quarterly Journal of Business Studies, 1(1), -. https://europub.co.uk/articles/-A-28500