Global Competitiveness, SME’s Survival and Economic Development in Nigeria

Abstract

This paper seeks to establish the effect of global competitiveness based on world economic forum framework on basic requirements, efficiency enhancers, innovation and sophistication on the small and medium scale enterprises in Nigeria with particular attention to Benin City, Edo state. Global competitiveness could be discussed assessed through the set of institutions, policies and factors that determine the level of productivity of a country. The level of productivity in turn sets the level of prosperity that can be reached by an economy as well as the rates of return obtained by investments in an economy. The paper relied solely on descriptive analysis of the primary data collected from a structured questionnaire. It was found out that the basic requirements, efficiency enhancers, innovation and sophistication which are driven by 12 pillars which includes public institutions, environment, infrastructure, macroeconomics environment, health and primary education, higher education and training, goods market efficiency, financial market development, technological readiness, market size, business sophistication and innovation as indicated by world economic forum (WEF), were rated low by business owners, which is an indication that Nigerian small and medium enterprises cannot compete globally. The paper suggest a critical review of government policies aimed at addressing the issue of infrastructures, financial incentives, vibrant research institutions and efficient financial market while the Nigerian entrepreneurs and scholars are challenged to vigorously tackle the issue of business innovations, technological readiness and manpower training.

Keywords: Global competitiveness, SMEs, survival, basic requirements, efficiency enhancer, innovation and sophistication