Investigating the Impact of Entrepreneurial Infrastructure Deficit on Firm Growth

Abstract

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.

Exploring the relationship between infrastructural development and socioeconomic well-being in rural areas: Evidence from Bakassi, Cross River State, Nigeria

“…A society is considered to be functioning, stable, and progressing if it provides essential services to the majority of its citizens in a way that allows them to use them with the fewest restrictions. Both in developed and developing countries, it is evident that proper planning, implementation, and maintenance of development infrastructures contribute significantly to an increased level of productivity, economic growth, and social well-being of beneficiaries (Mohapatra & Chandrasekhar, 2007;Mujumule, 2016;Usman et al, 2019). A government that prioritises infrastructure raises production facilities' level, reduces production costs, as well as creates job opportunities (Mujumule, 2016;Ovharhe et al, 2020;Omang et al, 2022).…”

Pengaruh Dukungan Pemerintah, Infrastruktur, dan Akses Pasar terhadap Pertumbuhan Usaha Kewirausahaan di Wilayah Perkotaan

“…Studi ini menyarankan agar pemerintah mempertimbangkan kembali kegiatan-kegiatan di daerah pedesaan untuk memastikan bahwa dukungan didistribusikan secara merata di seluruh tingkat lokasi. Studi lain yang dilakukan di Nigeria menemukan bahwa ketersediaan infrastruktur fisik dan non-fisik meningkatkan produktivitas, profitabilitas, penjualan, jumlah pelanggan, dan tingkat pertumbuhan yang konsisten bagi UKM (Usman et al, 2019). Studi ini merekomendasikan agar pemerintah menggunakan kebijakan fiskal untuk mengatasi tantangan ekonomi UKM dan berinvestasi dalam penyediaan fasilitas infrastruktur kewirausahaan untuk memfasilitasi pertumbuhan dan perkembangan UKM di Nigeria.…”