THE RELEVANCE OF ONLINE MARKETING ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN NIGERIA
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THE RELEVANCE OF ONLINE MARKETING ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN NIGERIA
ABSTRACT
The purpose of this study was to investigate 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 small and medium-sized businesses (SMEs) in Nigeria.
The goals of this study were to determine the significance 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 the relationship between online marketing and small and medium-sized business productivity in Nigeria.
The study’s focus is Lagos state in 2019 using business owners, and contingency management theory was employed as a framework. The survey research design was employed for this study, and the group targeted for this study is all business owners. The sample size was 400 business owners, and the cluster sampling technique was used.
The questionnaire was used for this investigation. The information gathered came from original sources. The findings of the data analysis show 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 relationship between online marketing and small and medium-sized business productivity in Nigeria.
Following the findings, it was advised that online marketing approaches be implemented in organisations. Because internet marketing helps enhance productivity, managers of small and medium-sized firms should make advantage of the online market.
Keywords: small and medium-sized businesses, web marketing, company performance, and the state of Lagos.
CHAPITRE ONE
INTRODUCTION
1.1. Background of The Study
Small and medium-sized businesses are without a doubt the driving force behind economic growth, poverty alleviation, job creation, and crime reduction. They account for a sizable fraction of all enterprises globally and play an important part in any economy.
Small and medium-sized businesses face a slew of challenges that threaten their long-term viability if they are not adequately marketed. According to researchers, the failure rate of small and medium-sized businesses in developing countries is higher than in the developed world (Marlow, 2009).
A company’s capacity to achieve its key performance indicators in a sustainable manner is critical to its ability to achieve its goals (Simerly and Mingfanf, 2000; Wan and Yiu, 2009).
The practise of exploiting web-based channels to communicate a message about a company’s brand, products, or services to potential purchasers is known as online marketing.
To succeed in this rapidly changing world, businesses of all sizes must sell themselves successfully. The importance of the internet to the globe in general, and businesses in particular, cannot be overstated.
The internet has been used to raise awareness and promote sales. In recent years, business owners’ usage of social media has become a significant platform for marketing their products and services to consumers (Paquette, 2013).
According to a research by Mathew, Ogedebe, and Ogedebe (2013), Nigerians who use the internet for one form of communication or another are assaulted everyday with advertisements for products and services from enterprises in the country.
The Nigerian government has previously launched a number of projects and policies aimed towards the development of small and medium-sized businesses. The Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) was founded in 2003, as was the National Credit Guarantee Scheme.
The Microfinance Policy Regulatory and Supervisory Framework (MPRSF) was established to address the issue of small business operators’ lack of access to credit, as well as 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 fact that numerous projects and policies have been implemented in Nigeria, poverty, unemployment, and stunted economic growth remain pervasive (Lawson 2007; Owenubiugie and Igbinedion, 2015; Obadeyi, 2015).
Despite their significant role, importance, and contribution to the national economy, small business firms continue to face numerous challenges. They face major obstacles that jeopardise their ability to function and contribute effectively to the economy.
According to Cromie (1991) study, marketing has consistently been either the most critical or second most critical of survival concerns, with other problems being accounting, finance, owner(s) conduct, and of external origin.
It is clear in Nigeria that the operations of small and medium-sized businesses are still plagued by a variety of issues such as difficulty in obtaining credit, short loan repayment periods, marketing, and digitalization, among others.
Online marketing for small and medium-sized firms has the advantage of requiring less cash because marketing messages may be distributed throughout an endless geographical space at extremely low costs.
Small business enterprises account for approximately 90% of the industrial sector in Nigeria, as well as 70% of national industrial employment and 10% of manufacturing production (Ajayi, 2002).
According to Anwatu (2006), small size firms account for 75% of the private sector in Nigeria. Developing the private sector is a driver of growth, wealth generation, and job creation in Nigeria.
Small business enterprise performance in Nigeria falls short of expectations (Basil, 2005; Abiodun, 2011). As a result, the purpose of this study is to examine the impact of internet 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 critical in any country for addressing poverty, unemployment, crime, and maintaining economic prosperity. There is deficiency in the performance of small and medium-sized commercial enterprises in executing their roles of economic growth, job creation, and poverty alleviation, making it difficult for small firms to achieve their targeted goals.
Most businesses fail to consider adequate marketing tactics, which reduces their prospects of long-term survival and causes a steady reduction in their abilities. Improper marketing is one of the most serious issues confronting small and medium-sized businesses.
Most small and medium-sized businesses in Nigeria do not take advantage of the possibility provided by web marketing in Nigeria because they still have limited capability in comparison to large corporations.
It is distressing to notice that the Nigerian government has not been able to appropriately assist the poor in growing small and medium-sized businesses over the years.
In Nigeria, the capacity of small and medium-sized businesses to establish and sustain a competitive edge is dependent on the availability of appropriate methods to keep their operations running.
In this context, the researcher examined 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 determine the impact of online marketing on the performance of small and medium-sized firms (SMEs) in Nigeria. The precise goals are as follows:
Discover the significance of online marketing for small and medium-sized businesses in Nigeria.
Learn about the web marketing tactics utilised by Nigerian small and medium-sized businesses.
Examine the effect 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
The following research questions will lead this study:
What is the significance of web marketing in Nigerian small and medium-sized businesses?
What are the web marketing methods employed by Nigerian small and medium-sized businesses?
What is the influence of online marketing on Nigerian small and medium-sized businesses?
What is the relationship between online marketing and the productivity of small and medium-sized businesses in Nigeria?
1.5 Research Theories
The following hypotheses guide the research:
H0: In Nigeria, small and medium-sized businesses do not value online marketing.
H0: Online marketing has no influence on Nigerian small and medium-sized businesses.
H0: In Nigeria, there is no association between online marketing and small and medium-sized business efficiency.
1.6. Significance of the Research
The importance of small and medium-sized businesses to the success or growth of any country is discussed. This is because the availability of marketing talents affects the ability of small and medium-sized businesses to achieve their objectives.
Because a lack of adequate marketing affects productivity, hindering the achievement of such substantial goals, small businesses play an important role in an economy.
This study is being conducted empirically to analyse the impact of online marketing on the performance of small and medium-sized enterprises (SMEs) in Nigeria in order to alleviate the problem of low productivity encountered by small and medium-sized businesses.
This study will be useful to small and medium-sized businesses since it will assist them determine how they should operate. It will educate it the significance of internet marketing as well as the essential guide to successful online marketing for business. It will also assist small and medium-sized business owners in getting the most out of their investments.
This study will be critical for investors, the government, and researchers since it will provide policy suggestions to various Nigeria stakeholders for implementing necessary steps in small and medium-sized enterprises for quick capacity investment.
It is believed that the examination of small and medium scale enterprises in Nigeria will offer investors and the government with a broad understanding of the activities of small and medium scale firms.
It will add to the existing research on the subject by empirically evaluating the role of online marketing in the country’s small and medium-sized businesses. This research will be useful to;
The Academia: Members of academia will find the study useful because it will serve as a foundation for future research as well as a reference tool for academic publications.
Government: This study will explain to the government what is going on in small and medium-sized businesses. Policy formulation and execution based on these findings would ensure development in the area.
Investors: This study will be useful to investors, particularly those with a research interest, as it will guide their private investing 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 using owners of small and medium-sized businesses in Lagos state.
1.8. Operational Definition of Terminology
The following terms have been operationally defined.
Small and medium-sized business enterprise: A small and medium-sized business enterprise has a modest number of employees and a limited flow of cash and materials.
Business performance is defined as an organization’s efficiency and effectiveness as reflected in the business objectives set by management.
Online marketing is the practise of using web-based platforms to convey information about a company’s brand, products, or services to potential clients.
1.9. Organisation of The Study
This research is organised into five chapters. The first chapter is an introduction, which includes the study’s background, problem statement, research questions, research hypotheses, objectives of the investigation, the relevance of the study, the scope and limitations of the study, and lastly the study’s organisation.
The second chapter is a review of the literature, which includes conceptual literature, theoretical literature, empirical literature, and a theoretical framework. The third chapter discusses research methodology, which includes research design, population of study, sample size, sampling strategy,
method of data collecting, instrument of data analysis, method of data analysis, and instrument validity/reliability. The fourth chapter is devoted to data presentation and analysis, as well as a discussion of the findings. The summary, conclusion, and recommendations are presented in Chapter 5.
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