Entrepreneurial Networking and Business Growth of Small and Medium Scale Enterprises Operating in Ogoja, Nigeria
Abstract
The primary goal of the study was to investigate the effect of entrepreneurial networking on the growth of small and medium scale enterprises operating in Ogoja. More specifically, the study was interested in assessing the effect of networking capability, network ties and network diversity on business growth of small and medium scale enterprises in the study area. The research adopted the descriptive survey research methodology. The target population for the research comprised of 789 registered SMEs operating in Ogoja in retail trade, services, agro based enterprises and small- scale manufacturing enterprises. Based on the Krejcie and Morgan sample size formula, the number of respondents was established at 259. A total of 259 copies of the questionnaire were administered to the respondents. However, 218 were valid and were therefore used for the analyses. The study employed the stratified random sampling technique. Primary data for the study was obtained through a structured questionnaire which had been developed using the five-point Likert scale. Data was analyzed using descriptive statistics and multiple regression analysis with the aid of SPSS version 27. The results showed that networking capability has a positive and statistically significant effect on SME growth in the study area. It was further observed that network ties have a positive and significant effect on SME growth. Also, network diversity has been found to positively and significantly impact on SME growth. The conclusions drawn by this study suggest that entrepreneurial networking is critical in driving SMEs in the study area due to its ability to connect SME owners to customers, referrals, sources of information and business opportunities. Based on the results and conclusions, SME owners need to work towards improving their networking capabilities and building strong and diverse networks with customers, suppliers, business associations, financial institutions, and other entrepreneurs.
Keywords
Entrepreneurial networking; Networking capability; Network ties; Network diversity; SME business growth; Small and medium scale enterprises
References
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