Growth Strategy and Performance of Selected Small and Medium Scale Enterprises in Anambra State, Nigeria
Keywords:Growth Strategy, Performance, Market Strategy, Penetration Strategy, Small & Medium Scale Enterprises
In numerous sectors, the intense global competition has resulted in a wave of mergers and acquisitions over the years. A company with the aim to remain in the race almost has to merge, buy, orally with another company. Another alternative is to expand and grow the organisation internally, e.g. diversifying, building completely new mills to new markets. Lack of adopting valid and effective growth strategies has been a problem for small and medium scale enterprises leading to a decline in their overall performance. The study thus evaluated the effect of growth strategy and performance of selected small and medium scale enterprises in Anambra State, Nigeria.
The study employed a cross-sectional survey research design. The Cross-Sectional survey research design was adopted to obtain information from the focus population concerning the current status of the phenomena through primary data collection. The population for the research comprised of selected small and medium scale enterprises that were registered with SMEDAN and operate in Anambra State, Nigeria. The total number of registered SMEs with SMEDAN as of 2017 was 1,504. The sample size for the study was obtained using the research advisors table. Based on a confidence level of 95 and the level of precision of 5% the samples size is 322 but with the addition of 30% for non-response rate, the sample was given thus as 418. The addition of 30% to the sample size is to ensure that the response rate of the study is attained significantly. Making provision for the non-response rate allows the researcher to improve the rate of response for the survey.
The findings of the study revealed that there is a relationship between the two variables. Concerning the exact effect of the penetration strategies on market share, the r2 = 0.452 shows the extent to which the penetration strategies explain the variation in market share of the selected small and medium scale enterprises. The coefficient also revealed that there is a positive relationship between the penetration strategies and the market share of the selected small and medium scale enterprises
The study recommended that penetration strategies should be given adequate attention and consideration by different small and medium-sized enterprises to reap benefits. Penetration strategies which are an effective tool for achieving better performance over rival firms should be adequately implemented by the organization.
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