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MARKET ORIENTATION AND SMALL AND MEDIUM ENTERPRISES’ (SMES) PERFORMANCE IN NIGERIA: A REVIEW

Abstract

Small and Medium Enterprises (SMEs) are a catalyst for economic growth and development in most developed countries. However, in most developing countries, the market and financial performance of SMEs is significantly undermined by a number of problems. One of the problems that hinders the performance of SMEs in Nigeria is lack of market orientation in most SMEs. This paper examined the effect of market orientation in enhancing the performance of SMEs in Nigeria. Review of the literature suggested that market-oriented SMEs are generally characterised by customer orientation, competitor orientation, inter-functional coordination, long-term focus and profitability, and that these have positive impacts on the market and financial performance of SMEs. It was concluded that market orientation can significantly enhance SMEs performance in Nigeria. It was recommended that in addition to the over-emphasis placed on financing for SMEs by the governments and other stakeholders in Nigeria, emphasis should be shifted to promoting market orientation in SMEs for effective performance.

Keywords: Small and Medium Enterprises, market orientation, performance and Nigeria.

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