Scaling Up SMEs in Nigeria: A Thematic Analysis of Strategic Drivers, Growth Barriers, and Entrepreneurial Insights

Abstract

This study examines the strategic drivers, barriers, and sector-specific insights that influence the scale-up of Small and Medium Enterprises (SMEs) in Nigeria. Through in-depth, semi-structured interviews with founders and senior managers from diverse sectors including ICT, garments, renewable energy, and pharmaceuticals this research identifies key factors that enable and constrain business growth. The findings reveal that internal business strategies such as visionary leadership, innovation, service quality, and operational adaptability are crucial to scaling in Nigeria’s volatile environment. However, external barriers, particularly limited access to capital, macroeconomic instability, and regulatory challenges, significantly impede scale-up efforts. While some respondents acknowledged the benefits of certain policies like tax exemptions, inconsistent implementation and regulatory delays remain pressing issues. The study also highlights the broader economic contribution of SMEs, including job creation, tax compliance, and support for smaller businesses. The research concludes with practical recommendations for improving financial access, streamlining regulatory processes, and fostering innovation within the SME sector. The findings offer valuable insights for entrepreneurs, policymakers, and future researchers aiming to enhance SME growth and economic development in Nigeria.

Keywords: SME Scale-Up, Strategic Drivers, Barriers to Growth, Nigeria, Entrepreneurial Insights

DOI: 10.7176/EJBM/17-6-07

Publication date: July 30^th 2025