Aligning Private Business Development and Economic Growth in Nigeria

Abstract

This paper examines the different factors that have influenced the development of new types of entrepreneurship in Nigeria since 1986. It analyzes the problems Nigerians confront in trying to run small businesses as a result of the structural adjustment policy that was proposed by the World Bank and International Monetary Fund, and adopted by the military government in 1986. The major questions addressed in this study are: what are the economic and political situations in Nigeria between 1980-1997 and how have these situations forced the people of the nation to be entrepreneurs? What obstacles do entrepreneurs face in starting small businesses in Nigeria? What are the different types of entrepreneurship that have resulted in Nigeria due to the structural adjustment policies of this period?

The paper demonstrates that economic difficulties were the major reasons for those who started their business between 1986 and 1995 in Nigeria. This supports the notion that entrepreneurship should not be viewed as a function of opportunity but rather as a function of cultural perception of opportunity and the need to maintain continuous family income. Policy implication and topics for future research are discussed.     

Environment and Performance of Family Businesses in the Reforming Polish Economy

Abstract

In the former planned economies, a major result of the economic reform programs has been the resurgence of private sector. As recent research has been unable to explain what leads to substantive growth performance in family businesses in Central and Eastern Europe, this study seeks to increase our understanding of the growth process in small businesses in the region. The paper attempts to identify the types of problems and impediments Polish small family businesses confront. The paper investigates the association of various problems with a firm's stage of growth and development using a sample of one hundred family businesses that operate in the southern region of Poland.     

Developing M-Education for Entrepreneurs and Small Businesses

Abstract

Mobile computing has the potential to be of great benefit to aspiring entrepreneurs and small business owners. Small businesses and entrepreneurs have been the subject of much literature, national policy and regional policy. A recurring concern has been the inability to transfer the benefits arising from new technologies to this important segment of the business community. The simplest and most obvious manner of rectifying these situations would be to have the small business sector participants come to the local colleges, universities, or small business development centers. However, due to a plethora of external and internal barriers, most attempts to reach this segment have proven quite futile. This gives rise to Mobile education (M-education). This article explores the possibilities and limitation of M-education. It gives a potential way of utilizing the technology and potential partnership in the Inland Empire of Southern California. The partnership is known as TECH-BOOST.     

The Endogenous African Business: Why and How It Is Different,Why It Is Emerging Now and Why It Matters

ABSTRACT

Africa is currently undergoing a transition that is unprecedented in its history. For the first time, the demand of urban populations pulls business development, thus creating economies with higher levels of specialization than before. This essay highlights the phenomenon of the endogenous African businesses that are arising in this process. These businesses tap into the natural resources and the social, economic, and cultural systems that build upon them. These resources and systems make the African business environment different from business environments in other parts of the world. Furthermore, the endogenous businesses have access to knowledge on how to manage modern businesses in the formal sector of the economy. In combination with African resources and systems, such knowledge enables them to create and sustain and competitive advantage in modern dynamic marketplaces. Endogenous African businesses are important because they have the potential to fuel economic growth, to revitalize rural areas, to contribute to food security and healthy diets, and to provide role models of which Africans can be proud. Hence, these businesses deserve our attention in the next two decades of scholarly research and education on African business.     

Strategic orientation in handicraft subsistence businesses in Oaxaca,Mexico

Abstract

This article, based in the body of strategic orientation literature, identifies and explores the practices of innovativeness, proactiveness and competitive aggressiveness that make up the strategic orientation implemented by subsistence entrepreneurs to improve business performance. A factor analysis was carried out using the data of 101 entrepreneurs, small artisanal business owners who operate in the subsistence markets in Oaxaca, Mexico. The results show that subsistence entrepreneurs notably engage in innovative and proactive practices, and, to a lesser extent, competitive aggressiveness. The research concludes that a combination of innovativeness with proactiveness is the most viable option for improving performance, whereas competitive aggressiveness impedes its development. Even so, however, it is still implemented by subsistence businesses in order to conserve their market share.     

The Transition from Product to Solution Selling: The Role and Organization of Employees Engaged in Current Business

ABSTRACT

Purpose: This research investigates how to manage and organize existing employees when launching a solution sales strategy, specifically addressing whether it is possible to migrate existing sales representatives active in product sales to solution sales, and whether it is possible to combine the roles.

Methodology/approach: A case-based approach was applied to a multinational firm, engaged in business-to-business sales that simultaneously launched a solution sales strategy in 17 countries. In-depth interviews with 29 managers and sales representatives were performed to inductively identify why some countries succeeded in the launch, while others did not.

Findings: Because of fundamental differences in approach between solution and product sales, those countries where the solutions and product businesses were separated performed better. The difference in required capabilities and mindset meant that migrating sales representatives from product to solution sales is problematic.

Research implications: This research offers evidence of differences in mindset and approach between different marketing and sales strategies, extending the conclusions to how these differences affect the possibility of migrating existing sales representatives when launching a new selling strategy. Whether to separate service and product sales has been debated. The present results indicate that separating the current product business from the new solution business facilitates the successful implementation of the new strategy. In the case company, the solutions represent a mixture of product and services, suggesting that the problem is not the difference between products and services, but rather different selling strategies and approaches that require different capabilities.

Practical implications: When launching a solution sales strategy, the solution business should be separated from the current product business at both the organizational and personnel levels. Solution sales necessitates a particular approach and capabilities, making it unadvisable to transfer sales representatives and managers to the new solution business based solely on previous product sales success. Instead, a new skill profile must be developed taking account of the requirements of a demand-driven solution strategy.

Originality/value/contribution: Consensus is lacking as to whether to separate product and service businesses. This article extends the debate to the field of solution

sales, demonstrating that separation is needed to succeed in launching a solution sales strategy. Furthermore, this research extends our knowledge of the difference in approaches between different selling strategies, covering the possibility of successfully migrating existing sales representatives to a different selling strategy.     

The Influence of Selected Factors on the Perceptions of Managers of Small Business Firms Regarding Legal Firms

Abstract

The South African service provider is faced with an increasingly turbulent and complex competitive environment (Griffith & Rust, 1997:109-116). Factors that impact specifically on the environment of service firms (such as the providers of legal services) include the growing importance of consumerism and a drastic increase in competition (Harrel & Fors, 1992:299-306).

The latter factor has a number of causes, amongst others, a stagnating economy (Griffith & Rust, 1997:109-116). A factor that impacts directly on the growing competition amongst providers of legal services is the increase in law graduates and commensurate increase in qualified attorneys and advocates entering the market. Figures supplied by the Law Society of the Cape of Good Hope and the Law Society of the Transvaal indicate an increase in excess of 50% in the number of practising attorneys in both the former provinces of the Cape and Transvaal between the years 1990 and 1997.

This article presents an exploratory study establishing the relative value attached by small business in South Africa to certain factors, inter alia advertising and location, pertaining to firms providing legal services. A better understanding of the importance of these factors will assist legal firms to improve service delivery thereby improving profitability.     

Why Do Some Small Businesses Grow Faster and Become “Successful” While Others Do Not Get Beyond the ‘Foothills’?

Abstract

A great deal of research has been undertaken in the area of growth and yet the reason why some small businesses grow faster and more successful than others, has not received sufficient research attention and little is known. This study sought to provide some understanding of the broad question “Why do some small businesses grow faster and ‘successful’ while others do not get beyond the ‘foothills’”.

The conclusion that can be drawn from this study is that it is the actions of the individual entrepreneurs and their management teams that are more significant in achieving business growth. The entrepreneurs in the sample possessed some willingness to pursue opportunities, to marshal resources and initiate actions rather than to react to other people's actions. The owner-managers did not possess the entrepreneurial and management skills authomatically but were acqwuired over time. Our understanding of the growth of small businesses was derived from the in-depth interviews held with the owner-managers themselves on how their businesses evolved over time.     

A Framework for Determining Success Factors of an E-Commerce Initiative

Abstract

Businesses and entrepreneurs are rushing to the Internet to do business and reach new markets. While the Internet is used for cutting cost and generating revenue by conducting business-to-consumer (B2C) e-commerce (EC) and business-to-business (B2B) e-commerce, existing businesses and entrepreneurs are finding tremendous challenges to succeed. This paper examines the factors that are critical to the success of any company's e-commerce initiative and makes recommendations to businesses and entrepreneurs so they can overcome the challenges and exploit the opportunities presented by the Internet.     

Internet Appreciation in Nigerian Business Organizations

ABSTRACT

Internet technology is one of the approaches used by business organizations to execute their business activities. The present research investigated the degree of Internet appreciation in Nigerian companies, factors influencing such appreciation, and the associated efficacy of Internet appreciation. It was found that e-mail was the most used aspect of the Internet system in Nigerian companies. Relatively, it was found that Nigerian business organizations used the Internet system mostly for business communication. The low level of Internet education proved to be the most influencing factor in Internet appreciation in Nigeria companies. These findings were discussed with respect to extant literature and pieces of empirical and anecdotal evidence. Management and policy recommendations were made and areas for future research suggested.     

Determination of Export Channel Strategies–The Experience of New Zealand Firms

ABSTRACT

There are many issues which need to be considered when businesses decide to internationalise their operations. One of the issues is the choice of export channels. The choice of export channels has a decisive impact on a firm's international marketing program. Export channel decisions are well researched in many countries However little attention has been made to investigate the choice of export channels by New Zealand international marketers This study examines the factors influencing the choice of export channels of 115 New Zealand firms conducting business with Taiwan. The results suggest that marketer's choice of export channels is influenced by the host market's business system, market size of the industry in the host market, and the degree of produce differentiation. The host market's business system is revealed for the first time to be a factor influencing the choice of export channels.     

Success and Internationalization: Analysis of the Textile Sector

ABSTRACT

The aim of the present paper is to investigate the relationship between business success and international involvement by examining international enterprises to see if they are more successful. To do this, 154 general managers in the textile sector were interviewed on two main groups of questions: (i) entry forms when going abroad; (ii) business results (sales, profit etc.) and competitive indicators (loyalty, satisfaction, image etc.) obtained.     

Sustainability Issues in Transnational Education Service: A Conceptual Framework and Empirical Insights

ABSTRACT

Many transnational education (TNE) services have been operating successfully to export education. However, many other TNE programs and partnerships have also been terminated. TNEs' sustainability is under-researched; specifically, its sustainability from the contexts of strategic partnership considerations, all recognized TNE activities, and its sustainability indicators. This conceptual article analyzes literature on TNE partnership issues, the standardization-adaptation (StandAdapt) concept of international business strategy and sustainability issues, with an aim to establish an initial route to develop TNE services that would sustain business viability, centered on transnational market-specific conditions. The analysis suggests that there is a consistent interrelationship between different sustainability indicators and market orientation, which has implications for incorporating sustainability issues into TNE services and transnational strategies. An initial framework is proposed to develop TNE services in order to sustain TNE businesses. Some empirical insights are developed in support of this conceptual framework. Further research areas are discussed.     

A situational analysis of consumer science skills used to improve incomes and create self‐employment in the Limpopo province,South Africa

A two‐phase study was conducted in the Mopani and Vhembe Districts of the Limpopo Province of South Africa to identify types of small‐scale businesses used by households to improve their income. The study sample was made up of 240 households from 16 villages and members from 16 organizations working with households in small‐scale, business‐related activities. Phase one of the study collected data on the types of small‐scale businesses carried out by households and organizations assisting them. Phase two developed training manuals and offered training to households. The findings revealed that self‐employment from sales of prepared and processed foods provided the main source of income for most households. Clothing and needlework and housing and art/craft were also used by families to generate income. Problems experienced included lack of technical/management skills, lack of marketing/business skills, inadequate operational funds, low profit margins, unavailability of raw materials and competition from big businesses. The findings highlighted the importance of consumer science‐related skills in poverty alleviation programmes targeting low‐resource households.     

How Service-Related Factors Affect the Survival of B2T Providers: A Sentiment Analysis Approach

ABSTRACT

Nearly one-third of the business-to-team (B2T) websites in China closed down in 2011—the casualties of the intensified competition in the group-buying market. To investigate the critical factors to the survival of online B2T businesses in an overcrowded buyer-side market, we propose a model that links convenience, price, product/service, personalization, and website security/safety to customer satisfaction of B2T websites in light of the related literature. A two-stage approach is applied to validate this model. In Stage I, according to the results of an empirical analysis based on questionnaire responses from 157 B2T website users, we found that convenience and product/service are the top two contributors to the success of B2T business, as measured by customers’ repurchase intentions. In Stage II, topic classification and sentiment analysis are applied to 3046 review comments related to 58 B2T websites. The results from the Stage II study confirm the validity of the Stage I results with further evidence to support our arguments.     

Comparing Attitudes Toward Ethical Dilemmas in Small Business

Abstract

This paper presents a comparative analysis of attitudes between Russian and U.S. undergraduate students on ethical issues in managing Russian small firms engaged in business transactions with U.S. firms. Based on the real life situations, Russian and American respondents were asked to select decision alternatives dealing with ethical dilemmas. Significant differences were found between the two groups. Russians do not recognize significant differences between various alternatives, despite the disparity in the severity of these alternatives for resolving business problems. Russians, compared to Americans, tend to prefer more forceful decision alternatives resorting to business practices that would be considered unethical in the U.S. This is attributable to differences in the countries' history, political, legal, and cultural environment. The transitional nature of the Russian economy affects decision-making and business ethics.     

The Barriers to Growth in Ghana

This paper presents the results of ordered logit regression models of the problems faced by 500 entrepreneurs from six regions of Ghana against the characteristics of the entrepreneurs and their businesses and whether these were systematically related to a list of 37 factors that they perceived as limiting their ability to achieve their objectives in the period 2002–2005. The results show that the education, but not the sex or age of the entrepreneurs were related to business barriers. Family Businesses, growing businesses, those providing training and those which did not spend money on R&D were more likely to encounter business barriers. The findings of the research also revealed that in general firms in conurbations were more likely to encounter barriers.      

Perceptions of Governance in Africa

Abstract

This paper reviews a survey of 800 business leaders and civil servants in Ghana, Kenya, Madagascar, Malawi, Senegal, Tanzania, Uganda, and Zambia. Like most African countries, these eight countries have undertaken governance reforms over the past decade, trying to include a wider range of views expressed by organized interest groups in the formulation of economic and commercial policies. This survey aimed to learn how business and government leaders perceive those recent governance reforms.

First, do managers and civil servants see local trade associations successfully representing the broader business point of view with decision makers, and keeping their members informed of current and proposed public policies? Second, to what extent do perceived principal/agent tensions divide companies from “their” business associations? Third, how does industry structure affect perceptions of business association perfor mance? A fourth issue is whether perceptions exist of “bureaucratic capture” or of excessive state power over business associations in the sample countries.

Most respondents see major problems with governance, though across countries they report the impression of improvement and expect further gains. This raises the risk of unmet expectations should the pace of reform slacken. Business associations are reported to work reasonably well as policy advocates for better governance. They are seen as doing a fair job of keeping members updated on the policy environment. There was little difference in opinion between larger and smaller companies, and surprising overlap between the public and private sectors. These findings are grounds for wary optimism about business-government relations in the region.

Progress will not occur automatically, however. Companies in Africa need to redouble their government relations and policy advocacy activities. The region's industry and trade associations are promising vehicles for expressing the interests of the business community.     

Marketing Professional Services to Family Businesses

ABSTRACT

Theory from the new field of family business studies, tested empirically here, indicates that family business procurement processes for professional services is significantly different from that of other companies. Family businesses engage in more informal processes, involve family members who are not employees as influencers in the buying center, require a greater investment on the part of their suppliers and take longer to reach a decision. As a result of these process distinctions, marketers of professional services targeting smaller to medium sized businesses should be prepared to address the special needs of family business owners.