Government tariff intervention and exportation activities of SMES in South West Nigeria
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Date
2024
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal of Entrepreneurship and Business Innovation (IJEBI)
Abstract
The advancement of Small and Medium Enterprises (SMEs)
plays a crucial role in the industrialization of developing nations. Yet, the
success and longevity of these SMEs heavily rely on a strong trade policy
and an effective tariff system. Unfortunately, the trade policy of the Nigerian
Government, particularly concerning SMEs, has not yet supported
substantial growth and development due to inadequate tariffs and a lack of
openness in import and export duties. This situation has resulted in low
output and productivity for SMEs. This research focused on exploring how
government tariff interventions impact the export activities of SMEs in
Nigeria's South-west geopolitical zone. The study used a cross-sectional
research design and targeted the 20,801 registered SMEs in the
manufacturing sector of the South-west region. A sample of 393 respondents
was selected using the Guilford and Fruchter (1973) formula, employing a
multi-stage sampling technique. Primary data was collected through a
survey questionnaire, utilizing a 5-point Likert scale adapted from Saragih
(2011) to measure responses. Descriptive statistics were used for the
analysis, supplemented by inferential analysis using R-Studio version 11.
The findings indicated that reducing tariffs from 10 percent to zero percent
resulted in an increase in the participation of medium-sized firms (those
with 100–249 employees) from 11.5 percent to 14.2 percent, but this change
did not significantly affect smaller firms. The study concluded that
government tariff interventions promote the export activities of SMEs and
facilitate their entry into the export market. As a recommendation, the study
suggested that the government should lower custom tariffs for SMEs to
enable them to achieve larger-scale production and thrive in the global
market.
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Citation
29. Abu, Z. Salau A. A., Ademola A. A & Waheed I. (2024). Government tariff intervention and exportation activities of SMES in South West Nigeria. International Journal of Entrepreneurship and Business Innovation (IJEBI) 7(2), .