Critical Success Factors (CSFs) of SMEs in Nigeria and the Mediating Impact of SMEDAN Initiative Between the CSFs and SMEs’ Success

Abstract

The study is deduced from a Ph.D. thesis that investigated the critical success factors influencing SMEs in Jigawa State, Nigeria. Over twenty-one, critical success factors were identified in the literature review as influencing the success of SMEs across many locations and industries, and seven were considered important for this study. Studies confirmed the need to identify the CSFs that apply to SMEs of a location or industry. The federal government of Nigeria focused on developing entrepreneurship and SMEs to trigger socioeconomic development, which resulted in many initiatives, including the establishment of SMEDAN to support the development of SMEs to reduce or eliminate their failure, as envisaged by many researchers. The objective was to discover the CSFs that influence the success of SMEs in Nigeria. The study using a mixed approach, considered the SMEs operating in Jigawa State, Nigeria, and selected a sample of four hundred respondents where 314 answered the self-administered survey questionnaire, and 15 owners/managers answered the semi-structured interview. The application of the SPSS statistical package revealed a higher educational level, prior work experience & management skills, adequate financial resources, and legal & regulatory compliance as influencing the success of SMEs of Jigawa State, Nigeria. Similarly, the SMEDAN initiative mediation between education level and finance resources: and the success of SMEs operating in Jigawa State is influencing their success. The CSFs of SMEs were considered information to be utilized by owners/managers to develop best business practice policies that will trigger socioeconomic development by reducing unemployment and poverty in Nigeria. The paper positioned a CSFs model for SMEs operating in Jigawa State, Nigeria, and will serve as information that will be utilized to develop best business practices to mitigate SMEs' failures.