Title: Interplay between clustering and the growth of small and medium enterprises: an insight into fabric-trading enterprises
Authors: Oluwabunmi A. Falebita; Omotolani R. Obanisola
Addresses: Business Administration Programme, College of Management and Social Sciences, Bowen University, 232101, Iwo, Nigeria ' Business Administration Programme, College of Management and Social Sciences, Bowen University, 232101, Iwo, Nigeria
Abstract: This article attempts to demystify the growth of small and medium enterprises (SMEs) and the formation of clusters. In specific terms, the authors analyse the determinants of clustering of SMEs, assess the performance of the clustered SMEs from 2010-2020 and investigate the interaction between clustering and SMEs' growth. Resulting from the survey is a total of 77 fabric-trading SMEs, clustered in the over 400 years old King's market in Oyo Town, Nigeria. The results reveal that the predominant influencers of SMEs' clustering are availability of infrastructure and built stalls, and propinquity to the road. Certain downsides of clustering have also been identified, while showcasing the importance of the provision and regular maintenance of available infrastructure and the delivery of basic education to the SME owners. This paper contributes to extant literature by identifying the contextual factors that influence the clustering of SMEs in sub-Saharan Africa and particularly Nigeria.
Keywords: small and medium enterprises; fabric-traders; clusters; clustering; enterprise growth; King's market; Nigeria.
International Journal of Agriculture Innovation, Technology and Globalisation, 2022 Vol.3 No.1, pp.28 - 46
Received: 26 Oct 2021
Accepted: 15 Apr 2022
Published online: 09 Nov 2022 *