Small and Medium Scale Enterprises (SMEs) and Industrial Development of Onitsha Metropolis: A Cluster Lead Approach

Abstract

This study is designed to address SMEs agglomeration and industrial development in Nigeria (especially on the Small and Medium Enterprises (SMEs) sub-sector in Onitsha metropolis of Anambra State). The broad objective of the study is to examine the relationship between SMEs clusters and industrial development of Onitsha metropolis while the specific objective is to examine the relationship between government policies, support and institutional knowledge transfer to SMEs agglomeration and Industrial productivity and competitiveness in Onitsha metropolis and was anchored on the Porter’s Diamond Model of Clusters Determinants. A descriptive survey design was adopted to verify and describe the situation under study and data for this study was gathered basically from primary source. The data were gathered with the instrument of questionnaire distributed to the sample population of the study. The 5 Likert-type (point) scale techniques were adopted for the questionnaire. The study administered 161 copies of questionnaire to the respondents at Osakwe Industrial Cluster, Awada and the New Motors Spare Part Business Cluster in Nkpor-Agu and the 154 questionnaires were correctly filled and returned. Pearson Product-Moment Correlation Coefficient statistical tool was used to test the research hypothesis generated for the study with the use of Software Package for Social Science (SPSS 23). The result obtained from the findings indicated that government policies, support and institutional knowledge transfer to SMEs agglomeration positively correlates with SMEs industrial development in Onitsha metropolis. This implies that SMEs agglomeration has stimulated industrial development in the clusters studied.

Keywords: Cluster, SMEs Agglomeration, Governmental policies, Industrialization and Competitive advantage.