Advances in Economics and Business Vol. 3(5), pp. 184 - 189
DOI: 10.13189/aeb.2015.030504
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The Determinants of Small and Medium-sized Enterprises Performance in Nigeria


Idris Isyaku Abdullahi 1,2, Chindo Sulaiman 3,2,*
1 Accounting and Finance Technology Programme, Abubakar Tafawa Balewa University, Bauchi, Nigeria
2 Department of Economics, Faculty of Economics and Management, University Putra Malaysia, Malaysia
3 Department of Economics, Faculty of Social and Management Sciences, Bauchi State University Gadau, Nigeria

ABSTRACT

This study aimed at examining the determinants of small and medium-sized enterprises (SMEs) performance in Nigeria. An autoregressive distributed lag approach to cointegration was applied to sample from 1981 to 2010 to achieve the set objective. The results revealed that both in the short-and long-run, interest rate and net export have had a negative impact on SMEs performance. At the same time, other determinants such as government spending, political instability and level of education were found to have insignificant impact during the studied period. Therefore, maintenance of low interest rate will undoubtedly assist to boost the performance of SMEs in Nigeria. As such, monetary authorities need to play a very important role toward achieving the target.

KEYWORDS
SMEs, Interest Rate, Net Export, ARDL Approach

Cite this paper
Idris Isyaku Abdullahi , Chindo Sulaiman . "The Determinants of Small and Medium-sized Enterprises Performance in Nigeria." Advances in Economics and Business 3.5 (2015) 184 - 189. doi: 10.13189/aeb.2015.030504.