Small and medium enterprises (SMEs) in Nigeria are suffering from a deplorable condition of entrepreneurial infrastructure (EI) which is evidenced in the myriad of challenges bedevilling their growth and development. This study therefore aims to investigate the impact of EI deficit on firm growth, focusing on the growth of SMEs in Nigeria. This was done through a critical review of extant literature (peer reviewed journal articles) on EI which were obtained from reputable data bases and broken down into two basic components of infrastructure (physical and non-physical infrastructure). Empirical findings revealed that the availability of physical infrastructure (constant water supply and good road infrastructure) and the non-physical infrastructure (electricity, government policies/programmes, access to financial support services, incubation centers/platforms, business clusters and entrepreneurship training) improves productivity, profitability, sales, number of customers and consistent growth rate of SMEs. Findings of this study would be of help to entrepreneurs, policy makers and the academic community as it will add to the existing literature on how availability of EI impacts the growth of SMEs. The study recommends that government should use fiscal policies to address the economic challenges of SMEs and also invest in the provision of EI facilities to facilitate the growth and development of SMEs in Nigeria.
Purpose: This study aims to examine the impact of Entrepreneurial Infrastructure (EI) on profitability of Small and Medium Enterprises (SMEs), focusing on hotels in Minna, Nigeria. Methodology: Sequential Explanatory Mixed research method was adopted. Purposive Sampling Technique was used to obtain a sample size of 51 out of a population of 70 hotels in Minna for collection of quantitative data via questionnaires, while Simple Random Sampling Technique was used to select 10 interviewees for collection of qualitative data via interviews. Descriptive statistics was employed in analysing the quantitative data, while thematic analysis was used in analysing the qualitative data. Findings: Quantitative findings revealed that the available EI in Minna had a negative impact on the profitability of hotels, while qualitative findings also revealed that interviewees generally felt a poor impact of EI on the profitability of their hotels. Practical implications: These findings would be useful to potential and practicing entrepreneurs in the hotel industry, policy makers and the academic community. It is recommended that government at all levels should formulate policies that will address challenges of the deplorable condition of EI in Nigeria. Paper type: Research paper
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