RELEVANCE OF ONLINE MARKETING ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN NIGERIA
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
RELEVANCE OF ONLINE MARKETING ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN NIGERIA
ABSTRACT
This study investigated the impact of online marketing on the performance of small and medium-sized firms (SMEs) in Nigeria. The goal of this study is to look into the influence of online marketing on Nigerian small and medium-sized businesses (SMEs).
The goals of this study were to determine the importance of online marketing for small and medium-sized businesses in Nigeria, to identify the online marketing strategies used by small and medium-sized businesses in Nigeria
to investigate the impact of online marketing on small and medium-sized businesses in Nigeria, and to establish a link between online marketing and small and medium-sized business productivity in Nigeria.
The study’s scope is Lagos state in 2019, with business owners as participants, and contingency management theory served as a framework. The research design employed for this study is a survey, and the target demographic is all business owners. 400 business owners were chosen as the sample size, and the cluster sampling technique was used.
This study’s instrument is a questionnaire. Data were acquired from original sources. The data analysis revealed that online marketing is important for small and medium-sized businesses in Nigeria
that online marketing has an impact on small and medium-sized businesses in Nigeria, and that there is a link between online marketing and small and medium-sized business productivity in Nigeria.
Following the findings, it was recommended that firms implement online marketing tactics. Because internet marketing helps enhance productivity, managers of small and medium-sized businesses should take advantage of the online market.
Keywords: Small and medium-sized company enterprises, web marketing, business performance, Lagos state.
Chapter one
INTRODUCTION
1.1. Background for the Study
Small and medium-sized businesses are undoubtedly the driving force behind economic growth, poverty alleviation, job creation, and crime reduction. They make up a huge percentage of enterprises worldwide and play an important part in any economy.
Small and medium-sized businesses have a number of challenges that can jeopardise their long-term viability if not successfully marketed. Researchers have found that the failure rate of small and medium-sized businesses in developing countries is greater than in the developed world (Marlow, 2009).
A company’s capacity to meet its key performance indicators in a sustainable manner is critical to achieving its goals (Simerly and Mingfanf, 2000; Wan and Yiu, 2009). Online marketing is the activity of using web-based channels to convey information about a company’s brand, products, or services to potential customers.
To succeed in today’s rapidly changing global environment, businesses of all sizes must be effectively advertised. The importance of the internet in the globe, and particularly in business, cannot be overstated. The internet has helped to raise awareness and increase revenue.
In recent years, business owners have increasingly relied on social media to market their products and services to consumers (Paquette, 2013). Online marketing is a reality in Nigeria, according to a study by Mathew, Ogedebe, and Ogedebe (2013)
who found that Nigerians who use the internet for some sort of communication are constantly besieged with advertisements for products and services from the country’s businesses.
The Nigerian government has previously launched a range of programmes and policies aimed towards the development of small and medium-sized businesses. The Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) and the National Credit Guarantee Scheme were both created in 2003.
The Microfinance Policy Regulatory and Supervisory Framework (MPRSF) was established to address the issue of small business operators’ lack of access to credit, along with the Small Scale Industrial Credit Schemes (SSICS), the Nigeria Industrial Development Bank (NIDB)
the World Bank-Assisted SME II loan project, International Financial Assistance, and the National Economic Reconstruction Fund (NERFUND), among others.
Despite the implementation of various programmes and policies in Nigeria, poverty, unemployment, and stunted economic growth remain pervasive (Lawson 2007; Owenubiugie and Igbinedion, 2015; Obadeyi, 2015).
Despite their important position, significance, and contribution to the national economy, small businesses continue to face numerous challenges. They face major obstacles that jeopardise their ability to function and contribute effectively to the economy.
According to Cromie’s (1991) research, marketing has consistently been either the most critical or the second most critical survival problem, with other difficulties including accounting, finance, owner(s) behaviour, and external origin.
In Nigeria, it is clear that small and medium-sized business firms continue to face a number of challenges, including difficulty acquiring financing, short loan repayment periods, marketing, and digitalization.
Online marketing for small and medium-sized firms has the advantage of requiring less cash because marketing messages may be broadcast throughout an endless geographical space at extremely low rates.
In Nigeria, small businesses account for approximately 90% of the industrial sector, 70% of national industrial employment, and 10% of manufacturing production (Ajayi, 2002).
According to Anwatu (2006), small and medium-sized firms account for 75% of Nigeria’s private sector. Developing the private sector is a driver of growth, wealth generation, and employment in Nigeria.
Small business enterprises in Nigeria perform below expectations (Basil, 2005; Abiodun, 2011). Thus, the purpose of this study is to examine the impact of online marketing on the performance of small and medium-sized firms (SMEs) in Nigeria.
1.2. Statement of the Research Problem
The survival of small and medium-sized businesses is regarded as critical in any economy for addressing issues of poverty, unemployment, and crime while also assuring economic progress.
There is deficiency in the performance of small and medium-sized commercial enterprises in terms of economic growth, job creation, and poverty alleviation, making it difficult for small firms to achieve their desired outcomes.
Most businesses fail to consider adequate marketing tactics, which affects their prospects of long-term survival and causes a gradual deterioration in their capacity. Improper marketing is one of the key issues confronting small and medium-sized enterprises.
Most small and medium-sized businesses in Nigeria do not take advantage of the opportunities provided by online marketing in Nigeria since they continue to encounter capacity constraints when compared to large corporations.
It is distressing to notice that the Nigerian government has historically failed to appropriately assist the poor in growing small and medium-sized businesses.
In Nigeria, the capacity of small and medium-sized businesses to develop and maintain a competitive advantage is dependent on the availability of appropriate techniques for preserving operations.
Against this backdrop, the researcher investigated the impact of online marketing on the performance of small and medium-sized firms (SMEs) in Nigeria.
1.3. Objectives of the Study
The purpose of this study was to analyse the impact of online marketing on the performance of small and medium-sized firms (SMEs) in Nigeria. Specific aims are to:
Learn about the relevance of online marketing for small and medium-sized businesses in Nigeria.
Discover the online marketing methods utilised by small and medium-sized businesses in Nigeria.
Investigate the influence of online marketing on small and medium-sized businesses in Nigeria.
Identify the link between online marketing and small and medium-sized business productivity in Nigeria.
1.4. Research Questions.
This study will be led by the following research questions.
How important is online marketing for small and medium-sized businesses in Nigeria?
What are the online marketing tactics employed by small and medium-sized businesses in Nigeria?
What is the influence of online marketing on small and medium-sized businesses in Nigeria?
What is the correlation between online marketing and small and medium-sized business productivity in Nigeria?
1.5 Research Hypotheses.
The investigation is guided by the following hypotheses.
H0: Online marketing has no impact on small and medium-sized businesses in Nigeria.
H0: Online marketing has no impact on small and medium-sized businesses in Nigeria.
H0: There is no correlation between online marketing and small and medium-sized business productivity in Nigeria.
1.6. Significance of the Study
The importance of small and medium-sized businesses to the success or growth of any country is highlighted. This is because the availability of marketing talents influences the ability of small and medium-sized businesses to achieve their targeted goals.
As a result of a lack of adequate marketing, productivity suffers, preventing small businesses from achieving such big goals in an economy.
This study is conducted empirically to analyse the significance of internet marketing on the performance of small and medium-sized organisations (SMEs) in Nigeria, with the goal of alleviating the problem of poor productivity.
This study will be useful to small and medium-sized businesses because it will provide guidance on how to operate. It will educate it the value of internet marketing and provide the required guidance for successful online marketing for businesses. It will also assist small and medium-sized business owners in extracting the greatest value from their operations.
This study would be extremely valuable to investors, the government, and researchers since it will provide policy suggestions to various Nigeria stakeholders for implementing suitable measures in small and medium-sized enterprises to accelerate capacity investment.
It is envisaged that the examination of small and medium-sized firms in Nigeria will offer investors and the government with a comprehensive understanding of how these businesses operate.
It will contribute to the current literature on the subject by doing empirical research into the role of online marketing in the country’s small and medium-sized businesses. This study will be beneficial to:
Members of the academic community will find the study useful because it will serve as a foundation for future research and a reference tool for academic work.
Government: This study will inform the government on what is happening in small and medium-sized businesses. Formulating and implementing policies based on these findings would secure the area’s development.
Investors: This study will also benefit investors, particularly those with a research interest, as it will drive their private investment selections.
1.7. Scope of the Study
The purpose of this study is to evaluate the impact of online marketing on the performance of small and medium-sized firms (SMEs) in Nigeria in 2019 by interviewing small and medium-sized business owners in Lagos state.
1.8. Operational Definitions of Terms
The terms listed below have been defined operationally.
Small and medium-sized business enterprises are defined as those with a small number of employees and a limited flow of funds and resources.
Business performance refers to an organization’s efficiency and effectiveness as expressed in its management objectives.
Online marketing is the activity of using web-based channels to convey information about a company’s brand, products, or services to prospective customers.
1.9. Structure of the Study
The study is organised into five chapters. The first chapter is an introduction, which includes the study’s history, statement of problem, research questions, research hypotheses, study objectives, the study’s importance, scope and constraints, and lastly the study’s organisation.
The second chapter is a survey of the literature, which includes conceptual, theoretical, and empirical material, as well as the theoretical framework.
The third chapter discusses research methodology, which includes research design, study population, sample size, sampling strategy, data collection method, data analysis instrument, data analysis method, and instrument validity/reliability.
The fourth chapter presents and analyses data, as well as discusses the findings. Chapter five includes a summary, conclusion, and recommendations.
Need help with a related project topic or New topic? Send Us Your Topic