Entrepreneurial Skills and Growth of Small and Medium Plastics Manufacturing Sub Sector- Led Enterprises in Nigeria

Abstract

The purpose of the study was to examine the influence of entrepreneurial skills on growth of small and medium plastic manufacturing enterprises in Nigeria. The specific objectives of the study were; to assess the influence of finance skills on growth of small and medium plastic manufacturing enterprises in Lagos State, Nigeria; to evaluate the influence of marketing skills on growth of small and medium plastic manufacturing enterprises in Lagos State, Nigeria; to establish the influence of networking skills on growth of small and medium plastic manufacturing enterprises in Lagos State, Nigeria; to analyze the influence of negotiating skills on growth of small and medium plastic manufacturing enterprises in Lagos State, Nigeria and finally to determine the moderating influence of regulatory framework on the relationship between entrepreneurial skills and on growth of small and medium plastic manufacturing enterprises in Lagos State, Nigeria. The study aimed at testing the null hypothesis that each of the specific objectives had no significant influence on the growth of SMEs in Nigeria. Descriptive research design was applied by the study. The study target population was 18,476 plastics manufacturing SMEs in LAGOS State, Nigeria. Based on Yamane Formula adopted the sample size for this study was 397 respondents. Random sampling was used to select the 392 plastics manufacturing SMEs from a total list of 18476 plastics manufacturing SMEs in LAGOS State, Nigeria. The owner/ managers of SMEs or their equivalent were the main respondents hence 392 questionnaires were administered. The study used semi structured questionnaires to collect primary data, comprising both closed-ended questions and open questions to collect the data. Secondary data was collected using a panel data collection tool. The SPSS software version 29 was used to analyze the data. A pilot study was conducted to test and analyse the validity and reliability of the data collection tools. It was determined via Cronbach’s alpha coefficient of 0.836 that the tools had a high level of reliability for the study. Both descriptive and inferential analyses were carried out. Specifically, descriptive statistics included means and frequencies while inferential statistics included regression and correlation analysis. The analysis revealed that entrepreneurial finance skills, entrepreneurial marketing skills, entrepreneurial networking skills and entrepreneurial negotiating skills had a positive and significant effect on growth of small and medium plastic manufacturing enterprises in Nigeria. The findings implied that regulatory framework significantly moderated the relationship between entrepreneurial marketing skills, entrepreneurial networking skills, entrepreneurial negotiation skills and growth of small and medium plastic manufacturing enterprises in Nigeria. Similarly, the findings revealed that there was no moderating effect of regulatory framework on the relationship between entrepreneurial finance skills and growth of small and medium plastic manufacturing enterprises in Nigeria. The study concluded that plastics manufacturing SMEs whose owners and managers had adequate entrepreneurial skills grow more than those whose owners and manager lacked entrepreneurial skills. The study recommended that these SMEs owners should hire managers with entrepreneurial skills to enhance the growth of their enterprises. The study further recommends that SMEs owner should attend trainings to enhance entrepreneurial skills to improve their business growth. The study recommends that the government of Nigeria and other governments, to formulate favourable legislation and policies that will provide friendly operating environment.