Leveraging the Impact of Management Consultancies on Small Scale Business Performance In Nigeria

Abstract

Research Background: Small and Medium Enterprises (SMEs) are generally considered as the engine for innovation and employment generation. This has been attributed to their flexibility in responding to new opportunities and possibilities for rapid growth and development. More so, use of management consulting has been particularly linked to organizational performance. This study seeks to explore the use of management constancies by small scale enterprises in Nigeria and how it impacts on their business performance.

Research Purpose: Most enterprises are often faced with the problem of poor managerial knowledge needed to provide quality service. However, studies have demonstrated connections between business success and effective managerial skill, especially for Small and Medium Enterprises. The aim of this study is therefore, to examine the impact of management consultancies on business performance of SMEs in Nigeria.

Research Questions: The study was guided by three research objectives namely:

i. What are the reasons for using management consulting among SMEs?

ii. What are the selection criteria used in choosing management consultant among SMEs?

iii. What are the factors affecting the use of management consultancy among SMEs?

iv. What is the effect of management consulting selection criteria on performance?

Method: The study adopted a descriptive research design. Quantitative data were collected through the use of online questionnaire. A total of one hundred SMEs were surveyed cutting across different sector of the economy. Data was analysed quantitatively using both descriptive and inferential statistics.

Conclusion: The study found low level of use of management consulting among the business owners. Also, trust and integrity and work experience were the principal factors influencing the use of management consulting. In terms of purpose for usage, management consulting was mostly used to solve ICT related problems, business financial/accounting matters, analysis of problems, investigating problems in business and training of employee. Overall, management consulting impacted positively on business performance.