Business model adoption as a panacea for sustainability of small and medium enterprises in Nigeria

Abstract

There is a notion that the life span of most small and medium enterprises is between five to ten years of operations, while only about ten percent strive and grow into maturity. Based on this assertions, this study therefore examined business model adoption as a panacea for sustainability of SMEs in Nigeria. The specific objective of the study is to evaluate the relationship between pricing methods, technological innovation and SMEs sustainability in Nigeria. A random sampling technique was used to select a sample of three hundred and ninety one (391) respondents from the total working population. A structured questionnaire was administered to elicit information from the respondents. The data obtained were analyzed using both descriptive and inferential statistics. Finding revealed that there is significant influence at P<0.05 of business model adoption on SMEs sustainability. The result indicated a positive relationship between pricing methods (r=0.490, P<0.05), technological innovation (r=0.639, P<0.05) on SMEs sustainability in Nigeria. The study confirmed that only organizations that make sustainability their goal by a well structured business strategies in terms of pricing, products, technologies and processes will achieve a competitive advantage. It was therefore recommended that business owners should design a structure that will create new values and deliver them to all stakeholders efficiently in order to sustain their business.