IIARD International Institute of Academic Research and Development

WORLD JOURNAL OF ENTREPRENEURIAL DEVELOPMENT STUDIES (WJEDS )

E-ISSN 2579-0544
P-ISSN 2695-2483
VOL. 10 NO. 3 2025
DOI: 10.56201/wjeds.v10.no3.2025.pg109.124

---

Effect of Diversification on Microenterprises’ Development in Ikwuano LGA, Abia State

Igbokwe, C U, Onyebu, M C, Oluwafemi, A M

---

Abstract

This paper aimed at examining effect of diversification on microenterprises’ development in Ikwuano LGA, Abia State. The specific objectives include determining: The socioeconomic characteristics of the small scale entrepreneurs in the study area, the criteria for measuring entrepreneurship excellent of micro-diversification in the study area, the factors affecting micro- entrepreneurs in micro-diversification in the study area. Simple Random sample technique was used to select one hundred and twenty (120) respondents. The data was collected using a questionnaire and subjected to analytical techniques such as 5-point likert scale, Product moment correlation coefficient, analysis of variance, using Special Package for Social Sciences (SPSS v.21). The result revealed that stock expansion, increase in income, increase customers’ loyalty, increase risk management, extension of enterprise, financial stability and increase number of employees were the major criteria for entrepreneurship excellence through micro-diversification in the study area as they all have their mean value X>3.00. It is revealed that financial inadequacy, regional security, lack of orientation on micro-diversification, Political influence was the only factor that affects the micro-entrepreneurs positively among all other factors with negative influences. The analysis revealed that there is a positive and significant relationship between micro-diversification and entrepreneurial excellence. That is, as the entrepreneurs embraced micro-diversification, they record positive changes in the microenterprises, hence, entrepreneurial excellence. The result showed that entrepreneurship excellence has a degree of freedom (df) 7.112 and Fcal 14.345 > Ftab 3.27 at a significant level of 0.000 < 0.05. The implication of this analysis is that the Fcal 14.345 is greater than the Ftab 3.27, and therefore, based on the decision rule, the null hypothesis is rejected in favour of

keywords:

Micro, Diversification, Entrepreneurship, Microenterprise.

---

References:

Ahmad. Y., Dewa ,O. H. (2023). Product and Service Innovation Strategies to Expand MSME
Markets. Journal of Contemporary Administration and Management (ADMAN), 1, (3),
163-169
Athanassakos, G. (2009). Modern Portfolio Theory. Globe Investor Magazine Online, May 22,
Retrieved, 21st April, 2022.
Baptista, R., Karaoz, M., Leitao, J. (2010). Diversification by Young, Small Firms. Paper to be
presented at the Summer Conference 2010 on “Opening up Innovation: Strategy,
Organisation and Technology” at Imperial College London Business School, June 16 - 18,
Braun, M., Latham, S., & Cannatelli, B. (2019). Strategy and business models: why winning
companies need both. Journal of Business Strategy. 40(5), 39–45.
Chen, S. & Ho, K. (2004). Corporate Diversification, Ownership Structure and Firm Value: The
Singapore Evidence. International Review of Financial Analysis, 9 (3), 315-26.
Donbesuur, F., Owusu-Yirenkyi, D., & Chu, I. (2020). Technological innovation, organizational
innovation and international performance of SMEs: The moderating role of domestic
institutional environment. http://hdl.handle.net/10454/18173.
Eukeria, M., &Favourate, S. (2014). Diversification as a Corporate Strategy and Its Effect on Firm
Performance: A Study of Zimbabwean Listed Conglomerates in the Food and Beverages
Sector. International Journal of Economics and Finance, 6 (5).
Ibrahim, Y. M. & Kaka, A. P. (2007). The impact of diversification on the performance of UK
construction firms. Journal of Financial Management of Property and Construction, 12
(2), 73-86.
International fund for Agricultural Development (IFAD), (2012). IFAD and rural Enterprises.
Kor, Y. Y. & Mahoney, J. T. (2004). Edith Penrose’s (1959) Contributions to the Resource?Based
View of Strategic Management. Journal of Management Studies, 41 (1), 183–191.
Li, D., & Jin, J. (2006). The Effect of Diversification on Firm Returns in Chemical and Oil
Industries. Review of Accounting and Finance, 5 (1), 20-29.
Lopez, C., Pizzo, A. D., Gupta, K., Kennedy, H., & Funk, D. C. (2021). Corporate growth
strategies in an era of digitalization: A network analysis of the national basketball
association’s 2K league sponsors. Journal of Business Research. 133, 208–217.
Oladotun, A. O., Kehinde, O. J., Olubusayo, F. H., Paul, S. O., Aderemi, A. V., Olowu, G. and
Abolaji,A. L. (2023). Growth Strategy, Technological Innovation and Performance of
Manufacturing Firms in Southwest Nigeria. Remittances Review, 8, (4), 4321-4342
Oluwafemi, A. M (2016). Outreach and Sustainability of Micro Enterprises Financing of
International Fund for Agricultural Development (IFAD) Among Entrepreneurs in Abia
Sate. A Project Submitted to the Department of Entrepreneurial Studies, Michael Okpara
University of Agriculture, Umudike, Nigeria.
Onyebu, M.C and Oluwafemi, A. M. (2019). Evaluation of Entrepreneurship Development in
Rebuilding a Depressed Economy (A Study of Selected States in Nigeria). Journal of
Economics and Business Sciences, Vol. 5, (1).
Otto, A. S., Szymanski, D. M., & Varadarajan, R. (2020). Customer satisfaction and firm
performance: insights from over a quarter century of empirical research. Journal of the
Academy of Marketing Science. 48(3), 543–564.
Oyewobi, L. O., Windapo, A. O., &Cattell, K. S. (2013). Impact of business diversification on
South African construction companies' corporate performance. Journal of Financial
Management of Property and Construction, 18 (2), 110-127.
Ozoh, U. P (2021). Effect Of Business Diversification Strategies On Performance Of Smes Aba’
Abia State , Nigeria. A Project Submitted to the Department of Entrepreneurial Studies,
Michael Okpara University of Agriculture, Umudike, Nigeria.
Patel, S. (2023). Company Growth Strategy: 7 Key Steps for Business Growth & Expansion.
Hubspot Information. https://blog.hubspot.com/sales/growth-strategy. Retrieved 21st
January, 2025.
Sandra, S (2011).“Entrepreneurial Orientation and Company Performance: Can the Academy
Literature Guide Managers?” Technology Innovation Management Review, 2, (6), 20-25.
Stirbu, C. (2023). What is a market development strategy? Log Rocket.
Thompson, A.A., Gamble, J.E. and A.J. Strickland (2006). Strategy: Winning in the Marketplace
(2nd ed.). New York: McGraw-Hill

DOWNLOAD PDF

---

Back