Determinants of growth on wood-based micro and small enterprises in Nigeria

Abstract

Micro and Small Enterprises (MSEs) have been recognized as major sources of employment and income in many countries of the world. In Nigeria, the wood- based MSEs are estimated to constitute about 5 per cent of the total MSE sector. The study was justified mainly because of lack of empirical data in the sector, and the overall role it plays in the productive economy. The purpose of the study was to investigate the determinants of growth of wood-based MSEs in Nigeria. This is important because the survival, sustainability and growth of the wood-based MSEs would impact positively on the overall performance of the economy. The study utilized the descriptive survey design. The proportionate stratified random sampling technique was used to select the respondents of the study. The primary data of the study was collected from the field using semi-structured questionnaire. In all, a total of 346 copies of the data collection instrument (sample size) were administered, while 300 copies were properly completed and retrieved, representing 87% response rate. To ascertain the reliability and validity, the data collection instruments were piloted. The Cronbach’s Alpha value for the five independent variables stood at between .603 and .844, indicating that they were reliable. The statistical analyses of the study were conducted utilizing statistical package for social scientist (SPSS) to calculate descriptive statistics, correlation, regression and trend analysis. Results indicated that the five independent variables of MSE-characteristics; Resources; Market; Relational factors and Individual entrepreneurship characteristics, individually and collectively relate positively with the growth of wood-based MSEs. Analysis of variance (ANOVA) was used to analyze the degree of relationship between the variables of the study. The overall findings indicated overwhelmingly that all the independent variables of MSE-characteristics; Resources; Market; Relational factors and Individual entrepreneurship characteristics, play important determining roles on the growth of wood-based MSEs in Nigeria, with Resources playing the leading role in determining growth. Due to importance of venture growth in enhancing profitability and sustainability, the findings of the study have established that all the independent variables influence the growth of wood-based MSEs in Nigeria. The study therefore, recommends that wood-based MSEs must adopt and sustain all the variables focused in this study especially those of business location, human/financial resources, aggressive market drive, social networks and need for achievement among others. The agencies of government responsible for enterprise registration should make the process less cumbersome to motivate enterprise owners to operate within the law and to remove multiple taxation/levies.