Growth Performance Vis-à-Vis Enterprise Size: A Study of SMEs in Akwa Ibom State, Nigeria
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Most studies on growth drivers of business enterprises are based on experiences in the more-developed countries, the policy conclusions of which may not be appropriate for the development of businesses in the less-developed countries like Nigeria. This study examined the size-growth relationship in56 small and 15 medium enterprises in Akwa Ibom State, Nigeria. With number of employees and total assets as selected measures of size, Fisher Z in conjunction with the correlation model was used for the examination. Results revealed that while a small but positive relationship exists between number of employees and growth, total assets showed a negative relationship in the two groups of enterprises. Also, the Fisher Z results confirmed that the observed relationship did not differ between the two groups of sampled enterprises. In view of the mixed findings, the study recommends size as a necessary, but not sufficient variable in formulating policies for the growth of small and medium scale industries.
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