Influence of Business Information Use on Sales Performance of SMEs in Lagos State

Authors

Adebowale Ojo, Babcock University, Ilishan-Remo, Ogun StateFollow
Sydney Akinsunmi, Babcock University, Ilishan-Remo, Ogun StateFollow
Oluwatimilehin Olayonu, Babcock University, Ilishan-Remo, Ogun StateFollow

Document Type

Article

Abstract

Small and Medium Scale Enterprises (SMEs) are crucial drivers of every nation’s economy. However, reports suggest SMEs in Nigeria have not performed creditably well in terms of sales. Hence, they are yet to contribute to a large extent to the economic growth and development of the country. Considering that business information is an indispensable resource in overall business performance, one is forced to question the availability and utilisation of business information by SME owners. This study examines the influence of business information use on the sales performance of SMEs in the information technology sector in Lagos State. Employing a survey research design, the study population comprised of 575 Computer and Allied Product Dealers Association of Nigeria (CAPDAN) registered SMEs in Computer Village of Lagos State. The stratified sampling technique was used to survey the responses of 181 SME owners who served as respondents in this study. A self-developed questionnaire was used as the instrument of data collection. Frequency distribution, simple percentages, and regression analysis were used for data analysis. Findings revealed that SMEs obtained most of the information they use from newspapers and informal sources. Also revealed was that business information utilisation influences sales performance of SMEs (R = 0.36, R Square = .212, F_1,161 = 94.18, p < 0.05). The study concludes that business information use for SMEs sales performance is inevitable. However, use is predicated on availability. It is recommended that agencies in charge of SMEs in Nigeria should put more effort in ensuring formal information sources are made available to SME owners.