The Effects of Economic Factors on the Performance of Small and Medium Enterprises

Small and Medium Enterprises refer to the segment of the labor market in developing countries that has absorbed significant numbers of job seekers (Chidoko et al., 2011) mostly self- employment, and workers in small production units (Christopher, 2007). Most people in developing countries have turned for self-employment to support themselves and their families (Ball, Geringer, Minor &McNett, 2010). The Small and Medium Enterprises are the result of the individual and family efforts for self- reliance and self-employment, (Chodoko et al., 2011). Every country defines SMEs differently and the main characteristics common in the definition of this term in many countries are the number of employees, annual sales turnover and the management style. Most businesses worldwide that falls under the category of SMEs employ fewer workers as compared to their counterparts in the large business sector (Cronje 2001; Asia-Pacific Economic Cooperation, 1999). Have a small annual sales turnover (Barney & Clark, 2007; Government of Nigeria, 2008).