Top

Published in:

2024 | OriginalPaper | Chapter

3. Small and Medium Enterprises Sustainability Strategies Beyond the Periods of Environmental Shocks: Evidence From a Developing Economy

Authors : Babatunde Daniel Agbi, Ayodotun Stephen Ibidunni

Published in: Innovation, Entrepreneurship and the Informal Economy in Sub–Saharan Africa

Publisher: Springer Nature Switzerland

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

The paper aims to investigate the Small and Medium Enterprises (SMEs) Sustainability Strategies beyond the Periods of Environmental Shocks. We drew insights from SMEs in Africa’s largest economy, Nigeria, to explain how SMEs developed strategies to sustain business operations during the recently witnessed global economic and health shocks that affected the overall business environment. Our study adopted the qualitative research design to demonstrate the disruption of survival, adaptation, and future thinking strategies and their implications for Small and Medium Enterprises in South-Western Nigeria. Interviews were conducted using open-ended questions emailed to forty-three Owners and Owner-managers of SMEs across South-Western states in Nigeria. The study results indicate a negative impact of the economic and health shocks on Small and Medium Enterprises (SMEs) sales, income, and profitability in Nigeria. Considering the sudden nature of the pandemic, operators of SMEs developed various novel coping strategies to minimize the impact and survive during and after the pandemic. However, the study has implications for policymakers toward supporting SMEs’ growth and future adaptation, especially in developing countries like Nigeria.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

previous chapter Jump on the Bandwagon: Finding Our Place in the Entrepreneurial Ecosystem Discourse

next chapter Motivating Entrepreneurial Activities to Achieve Sustainable Development in Sub-Saharan Africa

Adam, N. A., & Alarifi, G. (2021). Innovation practices for survival of small and medium enterprises (SMEs) in the COVID-19 times: The role of external support. Journal of Innovation and Entrepreneurship., 10(15), 56–65.

Agbi, B. D., & Rahim, A. G. (2021). Creativity and innovation: An imperative for entrepreneurial development in Nigeria, Nigerian Academy of Management Journal,16(1),24–36. https://www.namj.tamn-ng.org/index.php/home/article/view/130/123

Andreas, S. (2020). The impact of COVID-19 on education: Insights from education at a glance 2020. OECD Publishing.

Ayeni, A. W., Iyiola, O. O., Ogunnaike, O. O., & Ibidunni, A. S. (2017). Negativity of globalization: The Ebola Virus Disease and its health impact on Nigerians. African Journal of Business Management, 11(3), 47–56.

Ayeni, A., Ogunnaike, O. O., Iyiola, O. O., Ezenwoke, O. A., & Ibidunni, S. (2018). Data article on institutional framework and business survivals of informal entrepreneurs in electronics market, South-west, Nigeria. Data in Brief, 19, 1297–1304.CrossRef

Bajko, N., Fulop, Z., & Percsi, K. N. (2022). Changes in the innovation- and marketing-habits of family SMEs in the foodstuffs industry, caused by the coronavirus pandemic in Hungary. Sustainability, 14, 2914. https://doi.org/10.3390/su14052914CrossRef

Bishop, P. (2019). Knowledge diversity and entrepreneurship following an economic crisis: An empirical study of regional resilience in Great Britain. Entrepreneurship & Regional Development, 31, 496–515.CrossRef

Blogs—The Huffington Post. Retrieved from https://advance.lexis.com/api/document?collection

Boin, A. (2009). The new world of crises and crisis management: Implications for policymaking and research. Review of Policy Research, 26, 367–377.CrossRef

Cowling, M., Liu, W., & Ledger, A. (2012). Small business financing in the UK before and during the current financial crisis. International Small Business Journal, 30, 778–800.CrossRef

Czainska, K., Sus, A., & Thalassinos, E. I. (2021). Sustainable survival: Resource management strategy in micro and small enterprises in the rubber products market in Poland during the COVID-19 pandemic. Resources, 10, 85.CrossRef

Day, B., Ishman, M., Burnice Mckay, R., & Chung, E. (2004). “It will happen again”: What SARS taught businesses about crisis management. Management Decision, 42(7), 822–836. https://doi.org/10.1108/00251740410550907CrossRef

Doern, R. (2016). Entrepreneurship and crisis management: The experiences of small businesses during the London 2011 riots. International Small Business Journal, 34, 276–302.CrossRef

Doern, R., Williams, N., & Vorley, T. (2019). Special issue on entrepreneurship and crises: Business. https://doi.org/10.1056/NEJMe2001126

Emejulu, G., Agbasi, O., & Nosike, C. (2020). Strategic agility and performance of small and medium enterprises in the phase of Covid-19 pandemic. International Journal of Finance, Accounting, and Management, 2, 41–50.

Eze, B. U., Agbi, B. D., & Adenuga, A. O. (2021). COVID-19 pandemic: a qualitative evaluation of MSMEs survival strategies in Nigeria, Harvard Deusto Business Research, 10(2), 382–396. https://doi.org/10.48132/hdbr.331

Fatai, A. (2012). Small and medium scale enterprises in Nigeria: The problems and prospects. Retrieved on June 20 2022 from https://www.thecje.com/journal/index.php/economicsjournal/article/..../8

GDA (Global Data Analysis). (2020). Coronavirus (COVID-19) executive briefing. Global Data.

Ghanemi, A., Yoshioka, M., & St-Amand, J. (2021). Coronavirus Disease 2019 (COVID-19) Crisis Measures: Health Protective Properties? Medicines, 8(49).

Gilbert-Saad, A., Siedlok, F., & McNaughton, R. B. (2018). Decision and design heuristics in the context of entrepreneurial uncertainties. Journal of Business Venturing Insights, 9, 75–80.CrossRef

Hadi, S., & Supardi, S. (2020). Revitalization strategy for small and medium enterprises after Corona virus disease pandemic (covid-19) in Yogyakarta. Journal of Xian University Architectural Technology, 12, 4068–4076.

Hans, V. B. (2018). Business environment—Conceptual framework and policies. International Educational Scientific Research Journal, 4(3), 67–74.

Henschel, T. (2009). Risk management practices of SMEs. Evaluating and implementing effective risk management systems. https://www.researchgate.net/publication/259812085

Herbane, B. (2010). Small business research: Time for a crisis-based view. International Small Business Journal, 28, 43–64.CrossRef

Huang, C., Wang, Y., Li, X., Ren, L., Zhao, J., & Hu, Y. et al. (2019). Clinical features of patients infected with 2019 novel coronavirus in Wuhan, China. Lancet 2020. https://doi.org/10.1016/S01406736(20)30183-5

Ibidunni, A. S., Chidubem, M., & Adebanji, A. W. (2020). Entrepreneurial characteristics among university students: Insights for understanding entrepreneurial intentions among youths in an emerging economy. Education+Training, https://doi.org/10.1108/ET-09-2019-0204

Ibidunni, A. S., Ibidunni, O. M., Olokundun, M. A., Hezekiah Falola, O., Salau, O. P., & Borishade, T. T. (2018). Data article on disposition towards enhancing SMEs’ performance through entrepreneurial orientations: Perspectives from a developing economy. Data in Brief, 18, 1009–1012.CrossRef

Ibidunni, A. S., Ogunnaike, O. O., & Abiodun, A. J. (2017a). Extending the knowledge strategy concept: Linking organizational knowledge with strategic orientations. Academy of Strategic Management Journal, 16(3), 1–11.

Ibidunni, A. S., Olokundun, M. A., Oke, A. O., & Nwaomonoh, I. C. (2017b). Enhancing the performance of agro-based SMEs: The role of entrepreneurship competencies. Covenant Journal of Entrepreneurship, 1(1), 44–51.

IDAN. (2007). Entrepreneurship management; student study guide of the Institute of Development Administration of Nigeria (IDAN).

Kaufman, A. C. (2020). If we bail out airlines, it better come with climate rules. Newstex Blogs—The Huffington Post. Retrieved from http://advance.lexis.com/api/document?collection=news&id=urn:contentItem:5YG4-R6S1-F03R-N4KY-00000-00&context=1516831

Khayri, S., Yaghoubi, J., & Yazdanpanah, M. (2011). Investigating barriers to enhance entrepreneurship in agricultural higher education from the perspective of graduate students. Procedia Social and Behavioural Sciences, 15, 2818–2822.CrossRef

Korber, S., & McNaughton, R. B. (2018). Resilience and entrepreneurship: A systematic literature review. International Journal of Entrepreneurial Behaviour & Research, 24, 1129–1154.CrossRef

Kuckertz, A., Brändle, L., Gaudig, A., Hinderer, S., Morales Reyes, C., Prochotta, A., Steinbrink, K., & Berger, C. (2020). Journal of Business Venturing Insights, in press.

Li, Q., Guan, X., Wu, P., Wang, X., Zhou, L., & Tong, Y. (2020). Early transmission dynamics in Wuhan, China, of novel coronavirus-infected pneumonia. New England Journal of Medicine, 2020. https://doi.org/10.1056/NEJMoa2001316

Martinelli, E., Tagliazucchi, G., & Marchi, G. (2018). The resilient retail entrepreneur: Dynamic capabilities for facing natural disasters. International Journal of Entrepreneurial Behaviour and Research, 24, 1222–1243.CrossRef

Morse, J. M. (2000). Determining sample size. Qualitative Health Research, 10(1), 3–15. https://doi.org/10.1177/104973200129118183CrossRef

Munoz, P., Kimmitt, J., Kibler, E., & Farny, S. (2019). Living on the slopes: Entrepreneurial preparedness in a context under continuous threat. Entrepreneurship & Regional Development, 31, 413–434.CrossRef

Nyikos, G., Soha, B., & Beres, A. (2021). Entrepreneurial resilience and firm performance during the COVID-19 Crisis—Evidence from Hungary. Hungarian Central Statistical Office: Budapest, Hungary, 11, 29–59.

Obi, J., Ibidunni, A. S., Atolagbe, T., Olokundun, M. A., Amaihian, A. B., Borishade, T. T., & Peter, F. (2018). Contribution of small and medium enterprises to economic development: Evidence from a transiting economy. Data in Brief, 18, 835–839.CrossRef

Perlman, S. (2020). Another decade, another coronavirus. New England Journal of Medicine. https://doi.org/10.1056/NEJMe2001126CrossRef

Rashid, S., & Ratten, V. (2021). Entrepreneurial ecosystems during COVID-19: The survival of small businesses using dynamic capabilities. World Journal of Entrepreneurship, Management and Sustainable Development, 17, 457–476.

Robin, M., Toby, H., & Savage, M. (2020). Don’t bet on vaccine to protect us from Covid-19, says world health expert| World news| The Guardian. The Guardian.Com. Retrieved the 17th of May, 2020, from https://www.theguardian.com/world/2020/apr/18/dont-bet-on-vaccine-to-protect-us-from-covid-19-says-world-health-expert

Runyan, R. C. (2006). Small business in the face of crisis: Identifying Barriers to recovery from a natural disaster. Journal of Contingencies and Crisis Management, 14, 12–26.CrossRef

Sarasvathy, S. D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26, 243–263.CrossRef

Small and Medium Enterprises Development Agency (SMEDAN). (2019).

Smallbone, D., Deakins, D., Battisti, M., & Kitching, J. (2012). Small business responses to a major economic downturn: Empirical perspectives from New Zealand and the United Kingdom. International Small Business Journal, 30, 754–777.CrossRef

SMEDAN. (2013). Medium, Small and Micro Enterprises Survey—Summary Report. https://www.smedan.gov.ng

Smith, Y., & Watkins, J. (2012). A literature review of small and medium enterprises (SME) risk management practices in South Africa. African Journal of Business Management, 6(21), 6324–6330. http://www.academicjournals.org/AJBM, https://doi.org/10.5897/AJMB11.2709

Soludo, C. (2020). COVID-19: Can Africa afford lockdowns? Premium Times accessed on 25th April 2020.

Turo, N. K., & Kubik, A. (2021). Business innovations in the new mobility market during the COVID-19 with the possibility of open business model innovation. Journal of Open Innovation Technology, Market, Complexity, 7, 195.

Ucbasaran, D., Shepherd, D. A., Lockett, A., & Lyon, S. J. (2013). Life after business failure: The process and consequences of business failure for entrepreneurs. Journal of Management, 39(1), 163–202.

Uche, C., & Familusi, L. C. (2018). The adoption of agripreneurship as a mitigating measure to unemployment in Nigeria: A topical review. Global Journal of Management and Business Research: G Interdisciplinary, 18(2), 25–31.

Wang, C., Horby, P., Hayden, F., & Gao, G. (2020). A novel coronavirus outbreak of global health concern. The Lancet. 2020.

WHO (2020). Novel Coronavirus—China 2020. https://www.who.int/csr/don/12-

Williams, T. A., Gruber, D. A., Sutcliffe, K. M., Shepherd, D. A., & Zhao, E. Y. (2017). Organizational response to adversity: Fusing crisis management and resilience research streams. Academy of Management Annals, 11, 733–769.CrossRef

World Health Organization. Hand Hygiene for Health Workers Caring for Ebola Patients. Available at https://www.who.int/csr/disease/ebola/hand-hygiene/en/. Accessed on the 26th of April, 2020.

Wyns, A. (2020). How our responses to climate change and the coronavirus are linked. Accessed April 28th 2020 from https://www.weforum.org/agenda/2020/04/climate-change-coronavirus-linked/

Zhu, N., Zhang, D., Wang, W., Li, X., Yang, B., Song, J., et al. (2020). A novel coronavirus from patients with pneumonia in China, 2019. New England Journal of Medicine, 382(8), 727–733.

Title: Small and Medium Enterprises Sustainability Strategies Beyond the Periods of Environmental Shocks: Evidence From a Developing Economy
Authors: Babatunde Daniel Agbi
Ayodotun Stephen Ibidunni
Publisher: Springer Nature Switzerland
Book: Innovation, Entrepreneurship and the Informal Economy in Sub–Saharan Africa
Print ISBN: 978-3-031-46292-4

Electronic ISBN: 978-3-031-46293-1

Copyright Year: 2024
DOI: https://doi.org/10.1007/978-3-031-46293-1_3