Business Eco System and Micro, Small and Medium Enterprises (MSMES) Performance in Nigeria

Abstract

Firms are adopting collaborative network, which allow group of enterprises to enhance their performance and competitiveness. This study examines the effect of business ecosystem on MSMEs financial and non financial performance. The study employed survey research design, through the administration of structured questionnaires to 400 chief executives of MSMEs in Lagos, Anambra and Kano. The research instrument was validated by some academics and practitioners. A pilot study was conducted to ascertain the reliability of the instrument, by distributing the questionnaire to chief executives of 10 MSMEs twice within an interval of 14 days and the correlation of the first and the second study gave a Cronbach alpha of 0.84, which indicated that the instrument is highly reliable. Hypotheses were formulated and ordinary least square was employed to estimate the model with the aid of STATA version 14. Findings revealed that business eco system have positive and significant effect on MSMEs financial and non-financial performance. Therefore, it is recommended that MSMEs should consider their business eco system towards the enhancement of their financial and non financial performance.

Keywords

• Business Eco System
• MSMES
• Financial and Non-Financial Performance