Does innovation matter for economic development? An empirical study of small and medium-sized enterprises in the city of Kumba – Cameroon

In recent years, the development priorities of African countries have focused on private sector development to build a strong market economy that gives a more dynamic role to indigenous entrepreneurs and their innovative small and medium-sized enterprises (SMEs). This paper investigates the potential for indigenous SMEs in Cameroon to successfully emerge as agents of economic development through innovation. The analysis includes the personal characteristics that make up an indigenous entrepreneur as well as the contemporary environments in which SMEs operate. Building on Schumpeter’s notion that entrepreneurship contributes to economic development through the interplay of new firm creation, innovation and competition, questionnaires and interviews were conducted with indigenous entrepreneurs of selected SMEs in the city of Kumba, one of the most important concentrations of economic activity in the English-Speaking region of Cameroon. The results reveal that while economic profit is a priority for most entrepreneurs, SMEs exists mainly to alleviate poverty through income generating activities and contribute to economic development by providing employment and income for the poor. The SMEs studied focused on adapting, imitating and modifying existing innovations rather than pursuing genuine Schumpeterian innovation. This suggests that innovation is not a priority for the SME sector and therefore policies aimed at catching up with modern technology should be the central focus in providing assistance for indigenous entrepreneurs and these are suggested in this paper

Entrepreneurial Capability and Entrepreneurial Success of Small and Medium Enterprises: A Review of Conceptual and Theoretical Framework

The incidence of business failure especially in the small and medium enterprises sector is on the increase. This calls for more empirical research to investigate entrepreneurial factors to address business failure. Since the person behind the successful performance is the entrepreneur himself, his capabilities express in terms of entrepreneurial orientation and entrepreneurial competencies become the most important factors to investigate to ensure business successful in a constantly changing or dynamic business environment. This paper provides a review of conceptual and theoretical frameworks on entrepreneurial orientation and entrepreneurial competencies for empirical research on entrepreneurial success factors. Keywords: Entrepreneurial success, entrepreneurial orientation, entrepreneurial competencies, small and medium enterprises

The role of cultural values in understanding the challenges faced by female entrepreneurs in Nigeria

This article is (c) Emerald Group Publishing and permission has been granted for this version to appear here (http://bura.brunel.ac.uk/handle/2438/4036). Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.Purpose: This paper examines the challenges female entrepreneurs face in the development of their business in the context of Nigeria. In so doing, it addresses a gap in the literature on the experiences of female entrepreneurs in a non-Western context and acknowledges the contribution that women make in this area of work. Design: It draws on survey data from 274 female entrepreneurs currently engaged in their businesses in three states—Lagos (Nigeria’s largest city), Ogun, and Oyo within the south west of Nigeria. Findings: Results indicate that female entrepreneurs are generally confident and resourceful and that they enjoy the challenge of entrepreneurial activity. As in the West, they experience difficulties relating to family commitments and access to finance – as well as problems gaining acceptance and accessing networks. Originality: It is argued that cultural values specific to the situation mean that these challenges, while common to female entrepreneurs in other national contexts, ‘play out’ differentially and that they are experienced with different levels of depth and ‘intensity’. It is also argued that future research might uncover at a deeper level and drawing on qualitative methodology how some of the factors identified are experienced in women’s day to day lives. The paper suggests some policy implications in the form of support for female entrepreneurs in this context

Effect of Competitive Aggressiveness on Competitive Advantage of Selected Small and Medium Scale Enterprises in Ogun State, Nigeria

Small and Medium Scale Enterprises (SMEs) are frequently under pressure at the local or domestic markets because of cheap importation and high level of competition. The inability of top management of SMEs to properly analyse the market is one of the leading causes of their not been able to enjoy competitive advantage  Therefore, this study aimed to examine the effect of competitive aggressiveness on competitive advantage of small and medium scale enterprises (SMEs) in Ogun State, Nigeria. Survey research design was employed for this study. Set of structured questionnaire on competitive aggressiveness and competitive advantage of SMEs were self- administered for the collection of the primary data. In order to get a valid sample, a group of 386 firms were analyzed.  A pilot study was carried out to test the validity and reliability of the research instrument using Cronbach Alpha reliability test. The data collected were analyzed using both descriptive and inferential statistics. The findings of this study revealed that competitive aggressiveness has positive significant effect on competitive advantage of SMEs. (β=0.973; R2=0.294; t(385)= 12.636; p>0.05). It was concluded that competitive aggressiveness affected competitive advantage of SMEs in Ogun State, Nigeria, and recommended that entrepreneurs should employ appropriate price control mechanisms, invest heavily in marketing, advertisement, sales promotion and aggressive growth to enhance their competitive advantage which is critical for organizational performance, and that maintaining good relationships with clients is an important factor to be considered Key-Words: Competition, Competitive advantage, Competitive aggressiveness, Entrepreneurship, Small and Medium Enterprises

Moderating effect of culture on the relationship between entrepreneurial competencies, entrepreneurial orientation and women entrepreneurs’ business success in North-Western Nigeria

The operation of women-owned businesses in Nigeria have been characterised by high rates of failure, despite the supports received from the successive governments. This study draws upon the twin theories of Microfoundations of the Resource-Based View (RBV) and Contingency Theory, to empirically examine the moderating effect of culture on the relationship between entrepreneurial competencies and individual entrepreneurial orientation on the women entrepreneurs’ business success. Using a quantitative approach, data were obtained from a sample of 361 women micro-entrepreneurs through questionnaire survey. Partial Least Squares (PLS-SEM) technique of data analysis was employed to test the hypothesized relationships and findings showed that entrepreneurial competencies have a significant and positive relationship on the women entrepreneurs’ business success, whereas its relationship with culture was found to be negative and significant. However, the relationship between individual entrepreneurial orientation and women entrepreneurs’ success was also not significant. Similarly, culture was found to moderate the relationship between entrepreneurial competencies and women entrepreneur’s success, whereas its interaction with individual entrepreneurial orientation was not supported. The study further illustrates on how the reflective-formative model of higher order construct (HOC) is tested, which is an uncommon practice in the current literature of entrepreneurship. On the whole, the findings reveal the importance of entrepreneurial competencies in achieving women entrepreneurs’ success and suggest on the need to develop the individual entrepreneurial orientation of the women entrepreneurs. Additionally, it stressed on the need to develop the culture of entrepreneurship among the women entrepreneurs through national education policy, training, apprenticeships, and active participation in economic ventures. These findings have no doubt contribute to the mainstream of women entrepreneurship literature by expounding the female conception of success in business, highlighting the importance of human capabilities, and the influence wield by culture on the women entrepreneurs

A Study of Small and Medium - Scale Enterprises (SMES) Owners’ Resources Mobilisation and Innovative Culture in South-West, Nigeria

This study examined resource mobilisation and innovative culture of small and medium-scale enterprises (SMEs) owners in South-West, Nigeria. Five research questions were raised. The study adopted the descriptive survey research design. The sample comprised one thousand, four hundred and seventeen (1417) SME owners / managers out of which one thousand, three hundred and eighty-two (1382) responded appropriately, this showed 97% response rate. Data were collected using two instruments; these are Resource Mobilisation Questionnaire (r = 0.85) and Innovative Culture Scale (r = 0.68). Data were analysed using descriptive statistics, Pearson Product Moment Correlation and Independent t test.The results showed that SME owners possessed high level of resource mobilisation and innovative culturein South-West, Nigeria. Significant relationship existed between resource mobilisation and innovative culture of SME Owners’ in South-West, Nigeria. Furthermore, there was significant difference in the score on resource mobilisation of SME Owners while no significant difference existed in the score on innovative culture of SME Owners in South-West, Nigeria. Based on the findings, it was recommended among others that Government agencies should create strategies to improve resource mobilisation. This, in turn, will upgrade and enhance innovation among SMEs

Entrepreneurship in Africa (Volume 15)

Historically, entrepreneurs have always played a central role in the development of nation states. Aside from rentier states, which depend extensively on the availability of mineral resource rents, most economically prosperous nations in the world have strong, innovative and competitive business enterprises and entrepreneurs as the bedrock of their economic development and prosperity. It was arguably because of the above historical fact that the World Bank in 1989 declared that entrepreneurs will play a central role in transforming African economies. Chapters in this book contribute to our understanding of the theory, structure and practice of entrepreneurship in diverse African countries. Case studies examined include: African multinational banks and businesses, female entrepreneurs, culture and entrepreneurship, finance and entrepreneurship and SMEs. Contributors include: Akinyinka Akinyoade, Kenneth Amaeshi, Crescence Marie France Okah Atenga, Ton Dietz, Françoise Okah Efogo, Emiel L. Eijdenberg, Abel Ezeoha, Yagoub Ali Gangi, Miguel Heilbron, Uwafiokun Idemudia, Nsubili Isaga, Afam Ituma, Jane N. O. Khayesi, Rebecca I. Kiconco, Jerry Kolo, Peter Knorringa, Addisu Lashitew, André Leliveld, Marta Lindvert, Nnamdi Madichie, Hesham E. Mohamed, Knowledge C. Mpofu, Albogast Kilangi Musabila, Ayodeji Olukoju, Eunice Abam Quaye, Miriam Siun, Arthur Sserwanga, Rob van Tulder, Chibuike Uche and Jaap Voeten

Mediating role of access to finance and moderating role of business environment on the relationship between strategic orientation attributes and performance of small and medium enterprises in Nigeria

The main objective of this study is to examine the mediating role of access on finance and the moderating role of business environment on the relationship between entrepreneurial orientation (EO), market orientation (MO), learning orientation (LO), technology orientation (TO) and performance of Small and Medium Enterprises (SMEs) in Nigeria. Data were collected from the SMEs operating in North Western Nigeria using a cross-sectional study design. The study adopted cluster sampling and randomly selected 522 respondents and questionnaires were distributed and collected through the personally-administered method. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to test the study hypotheses. This study finds that EO, LO and TO are important strategic orientations for the performance of SMEs in Nigeria. The findings reveal that SMEs’ access to finance depends on the degree of MO, LO and TO of the enterprise. It is expected EO would improve a firm’s accessibility to finance, but the finding of this study does not support this expectation as EO negatively influences firm performance. Interestingly, the results further show that with better access to finance, MO, LO and TO influence firm performance. Furthermore, business environment does not have a significant moderating influence on the paths between EO and performance, MO and performance, LO and performance and TO and performance. The results of this study provide important insights to owner-managers, policy-makers and researchers to further understand the effects of strategic orientations on firm performance. Owner-mangers of SMEs should emphasize on EO, MO, LO and TO; however, it is important to note that over-concentration on EO may result in lower accessibility of financing. Policy-makers should encourage SMEs to improve their cash flow, profit and retained earnings which may encourage financial institutions to provide them with financial services. Lastly, limitations of the current study and avenues for future research are discusse

Exploring the connection between relational capital and female entrepreneurs

.Among intangible assets of contemporary companies, relational capital (RC) is a relevant strategic asset as well as a dimension of intellectual capital. In this scenario, micro-enterprises are key drivers of economic growth, and woman entrepreneurs are key developers of these businesses. So, the purpose of this study is to carry out a literature review analyzing how RC contributes to the startup phase of women-owned micro-enterprises. Another purpose is to understand whether and to what extent the studies conducted so far have addressed some issues such as “How and why women entrepreneurs use relational capital? What are the main benefits they get using relational capital? What are the main obstacles they face?” A literature search on Scopus was conducted, using a set of selected keywords. Scopus was used since it has quality publications. Selected papers were analyzed and classified, in an attempt to identify the main topics and results obtained from the research and analysis carried out so far. The contribution of the present research is to make the international literature focus on the connection between gender studies and RC. Particularly, the literature review emphasizes the topic proposed as emerging issue, which gives us the opportunity to identify new trends and future directions of research. This paper aims to advance knowledge and practice in the area of gender and management, using RC based on empirical research, theoretical developments, practice and current issues. The main evidences are related to a better understanding of the debate on gender and relational capital, considering that female entrepreneurship is central to the development and welfare of economies. Deep knowledge on how women entrepreneurs manage business relation can contribute to improving the effectiveness policies that promote the participation of female entrepreneurs in the economy

Strategies and Entrepreneurial Success: An Assessment of Selected Female-Owned Micro & Small Businesses in Ikenne LGA, Ogun State, Nigeria

Entrepreneurial success is largely dependent on the strategies employed in exploiting a unique profitable opportunity. The utilization of tacit knowledge and innovations had enabled firms to gain competitive advantage and achieve success. This paper examined the effect of strategies on entrepreneurial success with focus on female-owned micro, small and medium enterprises (MSMEs). Diverse theoretical and empirical discourses were reviewed to establish relationships and effects with reference to strategies and success of MSMEs. The paper utilized primary data collected after administering validated copies of questionnaire to fifty-six female-owned enterprises in Ikenne Local Government Area of Ogun State, Nigeria. MSMEs were selected using purposive-convenient sampling technique. Hierarchical regression analysis was conducted with specified multiple regression-models to depict entrepreneurial success as a function of strategies. From the results, it was discovered that knowledge transfer and innovation were key in engendering entrepreneurial success. Also, the number of years in business had a moderating effect on the relationship between strategies and the success of female-owned enterprises. The paper recommends knowledge transfer and embedded innovation to stimulate success among MSMEs in other areas, in order to ensure enterprises' longevity. Keywords: Innovation strategy, Knowledge transfer strategy, Entrepreneurial success, Knowledge-based view, Blue ocean strategy