March 2020 | AJERR

Corresponding Author E-mail: mohade2013@gmail.com
Published: 16 March 2020


Small scale businesses are globally associated with the constant struggle against imminent failure due to the harsh business environment that bedevils the sector. While many of them often collapse before the fifth anniversary, several others secure growth by embarking on diverse practices aimed at gaining competitive advantage. However, despite the adoption of various growth strategies, they still have not performed credibly well. The study thus assesses the effect of growth strategies on the performance of Small and Medium Scale Enterprises (SMEs) using selected SMEs in Nasarawa State as a study. The research adopted for the study is the survey research design; while the data used for the empirical analysis was generated through a structured questionnaire. The study utilized the regression method of analysis in estimating the effect of growth strategies on the performance of SMEs. Findings from the study revealed that product development strategies have a significant effect on sales growth of SMEs. Also, branding strategies were discovered to have a significant effect on employment creation; and lastly, the study revealed that innovative strategies have a positive and significant effect on the business expansion of SMEs. Based on these findings, the study recommends that SME operators need to consider adopting a product development strategy as not just a business objective but a means of achieving other business objectives. Small scale business managers should also have a good understanding of innovative practices and be able to simplify and embed such strategies into their regular business operations, planning and decision-making processes. This is to ensure that the innovative steps they take are proper and calculated to enable them to outperform positive rivals who do not adopt such strategies. Recommendations from the research suggest that SME operators should device effective marketing strategies such as branding strategy and creative personal selling which will enhance smooth and profitable business operations and increased market shares


Growth; Strategies; Performance; SMEs; Nigeria

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