Firm Characteristic Dimension and Business Growth in Selected Micro and Small Enterprises in Abia State, Nigeria
Micro and small enterprises make a considerable contribution to local and national economies, creating jobs, offering a wide variety of goods and services, and providing an income stream for the government as well. They are key drivers of economic development by providing employment opportunities to the unemployed. In addition, larger businesses often benefit from having smaller businesses in the same vicinity, relying on them for outsourcing and access to raw materials. Despite their importance, many small businesses have not managed to reach their full potential due to the many difficulties associated with their size, lack of financial leverage, and age. Hence, this study examined effect of firm characteristics dimensions on business growth in the selected micro and small enterprises in Abia State, Nigeria. The study adopted survey research design. The population of study was 962,092 owner/managers of selected micro and small enterprises in Abia State, Nigeria. The sample size of 499 was determined using research advisors table. Simple random sampling technique was adopted in selecting respondents. A structured and validated questionnaire was used for data collection with Cronbach’s alpha reliability coefficient for the constructs were above 0.7. The response rate was 78.9%. Data were analyzed using descriptive and inferential statistics. The findings revealed that firm characteristics dimensions have a significant effect on business growth in the selected micro and small enterprises in Abia State, Nigeria (R = 0.544a, R2 = 0.295, Adjusted R2 = 0 .290, F = (3,389) = 54.388). The study concluded that firm characteristics dimensions have a significant effect on business growth in the selected micro and small enterprises in Abia State, Nigeria. The study recommended that management should adopt growth strategies to increase firm size, such as expanding their market share and diversifying their products or services to improve business growth.
Keywords: Business growth, Firm characteristics, Firm age, Firm size, Leverage
