Critical Success Factors Of SME

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Topics: Critical Success Factors of Micro & Small Enterprises 1 Introduction This paper examines the Critical Success factors (CSF) of Micro & Small Enterprises in Nigeria. The specific objectives of the paper are to provide understanding of Critical Success factors (CSF), Identify and discuss the critical success factors in SMEs in Nigeria. 2 Critical Success Factors (CSFs) Defined Although initially used in the world of data analysis and business analysis, Critical Success Factors (CSF’s) are the critical factors or activities required for ensuring the success of business. It is number of areas in which satisfactory results will ensure successful competitive performance for the individual, department, or organization (Syed & Naqvi, 2015).…show more content…
Technological and strategic capability which manifest in high quality products are critical success factors of Most SMEs in Nigeria. 2 Development of appropriate and adequate managerial and leadership skills: developing right managerial and entrepreneurial skills through training may help to address the attendant lack of strategic plan, business plan, succession plan, adequate organisational set-up, transparent operational system, etc on the part of many founders and managers of SMEs in Nigeria. 3 The use of cost efficiency and high quality equipment: many SME promoters purchase obsolete and inefficient equipment thereby operating lower level of productivity and producing substandard product with dire repercussions on product output and market penetration and acceptance. But with the use of cost efficiency and high quality equipment, SMEs are more likely to produce high quality products at lower cost, which is imperative to compete in Nigeria market that is flooded with imported…show more content…
The characteristics of the entrepreneurs for achieving success in SMEs include need for achievement, locus of control/ability to control resources, risk taking propensity, pro-activeness and high tolerance for ambiguity, leadership, skepticism and creativity(Chong, 2016). Other personality characteristics influencing SMEs performance are competitiveness, drive, and organization, flexibility, impulsiveness, self-interestedness, innovations, ability to take opportunities, self-sufficiency and long term

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