ENTREPRENEURIAL STRATEGIES AND THE SURVIVAL OF SMALL AND MEDIUM SCALE ENTEEPRISES IN RED OCEAN BUSINESS CLUSTERS IN NIGERIA

Abstract

Small and medium scale enterprises play a critical role to the Nigerian economic considering its potentials in propelling the informal sector however, its survival particularly in this turbulent time occasioned by the fuel subsidy removal and exchange rate volatility requires an aggressive entrepreneurial strategy. This study examined the influence of entrepreneurial strategies on the survival of Small and Medium Scale Enterprises (SMEs) in the red ocean business clusters in Nigeria. The study adopts a descriptive research survey design. The population of the study consists of the Owner/Managers of SMEs in Nigeria. The sample size was determined using Kracie and Morgan statistical formula to reach respondents numbering 384 through a structured questionnaire but only 289 respondents completed and returned their questionnaire given 69% retrieval rate. Pilot study was conducted using a test re-test method and tested using Cronbach alpha to establish the reliability of the research instrument. Validity of the instrument was conducted using content and face methods moderated by three experts. The data were analyzed using multiple regression analysis. Findings revealed that there is a statistically significant relationship between entrepreneurial strategies and survival of SMEs in the studied red ocean business cluster in Nigeria. Premised on this finding, the study recommends that SMEs Owners/Managers should continuously strive to adopt innovative business strategies to enable them compete favourably in the dynamic and highly competitive business clusters in Nigeria.