Among those developing countries, the African country of Nigeria is a key one and in that country, SMEs account for almost 95% of the total industrial base of the country. “The formal and organised SMEs represents more than 95% of the organised manufacturing sector in Nigeria in terms of numbr of units” (Mamman, Eldridge & Branine 2007, p. 152)
Nigeria is a country with a population of over 149 million people, and politically speaking, it remained under the military control for most part of its modern history. (CIA.gov 2009). According to World Bank figures (2009), Nigeria economy comes under the category of lower middle income countries or developing country with potential for good growth due to its substantial oil resources, which can provide the necessary stimulus for the economic growth. Due to the inefficiencies of the previous and current governments in managing the overall affairs of the economy, Nigeria is not able to fully tap its resources and achieve economic success. It is because of this reason that Nigeria is still considered among the 20 most poor nations of the world as 57% of its population are still living below the poverty line. (Canagarajah & Thomas 2001). However, the Present government of the country is believed to have undertaken steps to undo the damage that has been done to the economy in the past. One of the key steps is the diversification the economy as almost 85% of the economic is dependent on the oil sector. “The Nigerian economy is heavily dependent on the oil sector, with this industry accounting for more than 95% of export earnings and about 85% of government revenues, says the World Bank” (cited in Brinded 2010). With this diversification, Nigeria can have a diversified base of businesses which invariably can provide the stable and sustainable economic development for the country. In such a scenario, SMEs can play a critical role in providing diversification and serve as the necessary catalyst for the economic ...
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