Strategizing for Sustaining Small Business Enterprises in Nigeria

Abstract

Small business enterprises are important to the economic growth of Nigeria because they make up 97% of the economy and contribute 70% of the country’s job opportunity. Notwithstanding the importance of small businesses in the Nigerian economy, 80% fail within the first five years. Based on system theory developed by Ludwig von Bertalanffy, the purpose of this multi-unit qualitative case study was to investigate the strategies owners and managers used to sustain operations longer than first five years. Twelve senior managers of small businesses in Dutse Nigeria participated in an interview. Methodological triangulation of interview questions was used to collect the data. Review of transcribed data and member checking were used to affirm the validity, credibility, and reliability of the study. Ten dominant themes emerged as findings: managers with educational and professional qualifications, skills, and experience; written business and strategic planning; additional financing; commitment of owners; and improved working conditions and good employees manager rapport. Other findings include the use of word of mouth and maintaining a close relationship with top 20% and high spending customers; use of local FM radio stations, social media, and face-to-face contacts marketing; and the use of e-commerce and e-payment platforms. The findings also include the use of support services; and knowledge of seasonality, cutting cost, and financial discipline. Findings might be utilized by small business owners and managers to develop success strategies to sustain operations longer than first five years which might mitigate small business failure. Mitigating small business failure might contribute to the growth of Nigerian economy.