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Financial Strategies for Entrepreneurial Marketing Among SMES in Nigeria – The Role of Fintech

Esi-Ubani, Chidiadi Obinna, Chiana Cyril Anamelechi Ph.D, Princewill Osinachi Njoku Ph.D

Abstract

This study examines the role of financial technology (fintech) in financial strategies for entrepreneurial marketing among Small and Medium Enterprises in Nigeria. The rapid growth of fintech has transformed the way businesses operate, innovate, and compete in the market. Despite the increasing importance of fintech, there is a dearth of research on its impact on entrepreneurial marketing among SMEs in Nigeria. This study bridges this gap by investigating the effect of fintech adoption on marketing performance and financial management practices among SMEs in Nigeria. A quantitative cross-sectional survey design was employed, utilizing a structured questionnaire with a 5-point Likert-type scale to capture respondents' perceptions on the subject. The study targeted owners of SMEs across Nigeria, with 75 out of 103 questionnaires duly filled and returned. The data were analyzed using descriptive statistics, correlation analysis, and multiple ordinary-least-squares regression. The findings indicate that fintech adoption has a significant positive effect on marketing performance (β = 0.56, p < 0.01) and financial management practices (β = 0.48, p < 0.01) among SMEs in Nigeria. Regulatory issues were found to be a significant challenge to fintech adoption (β = -0.35, p < 0.01). The study's results suggest that SMEs in Nigeria can leverage fintech to improve their marketing performance and financial management practices. However, regulatory issues need to be addressed to enhance fintech adoption. The study's findings have implications for policymakers, regulatory bodies, and SMEs in Nigeria. Policymakers should create policies that support fintech adoption among SMEs, while regulatory bodies should develop guidelines for fintech adoption to ensure security and stability. SMEs should invest in fintech solutions and provide training and development programs for employees to enhance their fintech skills.

Keywords

FintechEntrepreneurial MarketingSMEsNigeriaFinancial Management PracticesMarketing PerformanceRegulatory Issues.

References

Abor, J., & Quartey, P. (2010). Issues in SME development in Ghana and South Africa. International Research Journal of Finance and Economics, 39, 218-228. Adegbite, E. O. (2017). Entrepreneurship and small business development in Nigeria. Journal of Entrepreneurship and Innovation, 1(1), 1-12. Arner, D. W., et al. (2015). Fintech: Evolving definitions and future directions. Journal of Financial Perspectives, 3(2), 1-15. Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. Beck, T., et al. (2018). Fintech and financial inclusion. World Bank Policy Research Working Paper, (8492). Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319-340. EFInA. (2020). Access to financial services in Nigeria 2020 survey. Gupta, S., & Yadav, S. (2017). Fintech and financial inclusion: A review of the literature. Journal of Financial Services Marketing, 22(3), 133-144. Hair, J. F., et al. (2014). A primer on partial least squares structural equation modeling (PLS- SEM). Sage Publications. Hills, G. E., & Hultman, C. M. (2011). Entrepreneurial marketing: Conceptual foundations and research directions. Journal of Marketing Theory and Practice, 19(2), 137-154. Kshetri, N. (2018). Fintech and financial inclusion: A review of the literature. Journal of Financial Services Marketing, 23(2), 105-118. Kline, R. B. (2015). Principles and practice of structural equation modeling. Guilford Publications. KPMG. (2020). The pulse of fintech 2020. KPMG International. Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135-172. Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770-791. Morris, M. H., et al. (2002). Entrepreneurial marketing: A construct for integrating emerging entrepreneurship and marketing perspectives. Journal of Marketing Theory and Practice, 10(4), 1-19. SMEDAN. (2020). National survey of micro, small and medium enterprises in Nigeria. Small and Medium Enterprises Development Agency of Nigeria. Venkatesh, V., et al. (2012). Consumer acceptance and use of information technology: Extending the unified theory of acceptance and use of technology. MIS Quarterly, 36(1), 157-178. World Bank. (2020). Global financial inclusion database. Questionnaire Section A: Demographics 1. What is the nature of your business? (1) Manufacturing (2) Service (3) Trading (4) Agriculture (5) Other (specify) 2. How many employees do you have? (1) 1-10 (2) 11-50 (3) 51-100 (4) 101-200 (5) More than 200 3. What is your business's annual turnover ? (1) Less than ₦10 million (2) ₦10-50 million (3) ₦51-100 million (4) ₦101-500 million (5) More than ₦500 million 4. How long has your business been operational? (1) Less than 2 years (2) 2-5 years (3) 6-10 years (4) 11-15 years (5) More than 15 years 5. What is your highest level of education? (1) Secondary (2) Diploma (3) Bachelor's (4) Master's (5) Ph.D. Section B: Financial Strategies 6. Our business has a clear financial plan. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 7. We regularly review our financial performance. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 8. We use financial data to inform marketing decisions. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 9. Our business has access to sufficient financing. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 10. We manage our cash flow effectively. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree Section C: Entrepreneurial Marketing 11. Our marketing efforts are innovative and proactive. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 12. We focus on customer needs and satisfaction. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 13. Social media is crucial to our marketing strategy. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 14. We measure the effectiveness of our marketing efforts. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 15. Our marketing budget is adequate for our needs. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree Section D: Fintech Adoption 16. We use fintech solutions for payment processing. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 17. Fintech has improved our financial management. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 18. We use mobile money services for transactions. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 19. Fintech has increased our access to finance. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 20. We plan to increase our use of fintech solutions. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree Section E: Challenges and Opportunities 21. Fintech adoption is critical to our business growth. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 22. Regulatory issues hinder our fintech adoption. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 23. Lack of technical expertise limits our fintech use. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 24. Fintech has reduced our transaction costs. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 25. Security concerns affect our fintech adoption. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree Section F: Future Outlook 26. We will increase our investment in fintech solutions. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 27. Fintech will be crucial to our future growth. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 28. We plan to expand our product/services offering. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 29. Marketing will remain a key focus area. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree 30. Our business will be more financially stable in the next 2 years. (1) Strongly Disagree (2) Disagree (3) Neutral (4) Agree (5) Strongly Agree

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