Economic Environment of Small and Medium Scale Enterprises: Implications on Economic Growth in Nigeria
Journal Title: Journal of Economics, Management and Trade - Year 2017, Vol 19, Issue 4
Abstract
The complexities arising from the fluctuations of economic environmental factors have constituted core difficulties encumbering the operations of small and medium scale enterprises in Nigeria. This led to collapse of businesses, loss of jobs and unprecedented decline on their performance which is a cog on the wheel of economic growth. Therefore, this study titled economic environment of small and medium scale enterprises and its implications on economic growth in Nigeria was an attempt to explore the implications of economic environment of small and medium scale enterprises on economic development. The study employed a quantitative design with secondary data on SMEs performance, government tax revenue, exchange rate, interest rate and inflation rate, respectively. Ordinary Least Square (OLS) formed the basis for the estimation. The study found that exchange rate, inflation rate, interest rate and government tax revenue have negative relationship with SMEs performance. The implication of this negative relationship is that consistent increase in government tax revenue, exchange rate, inflation rate and interest rate have propulsive affect on performance of SMEs in Nigeria, vice versa and recommended that the federal government should come up with economic policy and regulatory framework that will maintain fixed exchange rate, interest rate and low inflation because stabilizing these economic variables would drive the operations of small and medium enterprises, as they will innovate, create and invent new things, products and services to stimulate productivity, which in turn, create resource-based economy.
Authors and Affiliations
Lilian Orogbu, Chinedu Uzochukwu Onyeizugbe, Ewans Chukwuma
Keywords
Related Articles
- EP ID EP319852
- DOI 10.9734/JEMT/2017/36349
- Views 69
- Downloads 0
Manpower Development and Employees’ Performance: Qualitative Assessment of Small and Medium Scale Business in Abuja Nigeria
Manpower development is receiving broader consideration with the emergent of current globalization and unstable job market due to the present economic recession in Nigeria. Developed and developing countries in the world...
Accountants’ Perceptions of IPSAS Application in Nigerian Public Sector Financial Management and Reporting
This study examined accountants’ perception of IPSAS acceptance in Nigerian public sector financial management and reporting. There are conflicting or divergent views as to what will accrue or what Nigeria stand to gain...
Human Resource Management Practices and Employee Retention: A Review of Literature
Human Resources (HR) are the most valuable asset in any organisation. Even though organisations advanced with technology, they need HR to run the technology. With this advancement in the industries completion among the o...
Economic Environment of Small and Medium Scale Enterprises: Implications on Economic Growth in Nigeria
The complexities arising from the fluctuations of economic environmental factors have constituted core difficulties encumbering the operations of small and medium scale enterprises in Nigeria. This led to collapse of bus...
The Enigma of the Income Tax
The objective of this paper is to propose an alternative formulation of income tax that is based on simultaneous utility maximization of both the taxpayer and the government. This method is different from both the fixed...