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Top1. Introduction
Recently, the performance of small and medium-sized enterprises (SMEs) has generated a great deal of discussions among practitioners, researchers, educators, and policymakers. In this regard, the characteristics and determinants of SMEs have been the focus of much debate and interest (McKelvie, & Wiklund, 2010) due to the unique constraints and limitations faced by SMEs, such as the limited number of employees, insufficient financial resources, the lack education background, experience, managerial expertise, technological innovations and other limiting factors (Saleh, & Ndubisi, 2006; Aris, 2007). Consequently, there are continuous efforts to understand how the performance of SMEs could be further enhanced. Thus, these efforts are important since this sector is recognized as one of the crucial engines of growth for a country’s economy (Kassim, & Sulaiman, 2011). Equally, SMEs are also recognized as crucial mechanisms of national development in technologically advanced and industrialized economies (Aigboduwa, & Oisamoje, 2013; Abdullahi, Jakada, & Kabir, 2015; Lai & Arifin, 2011; Abrie & Doussy, 2006). They also serve as a backbone for the economic revival of many countries in Sub-Saharan Africa (SSA) (Babajide, 2011) where micro, small and other medium enterprises generate a great deal of employment as they hire large number of labor in these economies (Mahmood, & Hanafi, 2013). Consequently, in most countries, SMEs generate employment and reduce poverty, as well as help improve the GDP. For instance, in the UK, it was projected that in 2014, small businesses would make up nearly 99.3 percent of the entire UK private sector with the employment turnover of almost 47.8percent. The report further clarified that SMEs employ almost 13.4 million individuals with a turnover of almost £1,600 billion. Anyanwu (2001) argued that in emerging economies, such as in Singapore and Malaysia, SMEs have contributed enormously towards the economy; In Malaysia, it was reported that 93.8% of the firms in the manufacturing sector are SMEs and they employ 38.9 percent of the workforce and contribute to 27.3 percent of the total output of the manufacturing industry (Saleh, & Ndubisi, 2006). In addition, in Japan, SMEs contribute to almost 70 percent to their nation exports. The significant contribution of SMEs to country’s economy is also evident in Germany, where SMEs contribute to about 53% of the GDP followed by the UK (51%), Korea (49) and SMEs in Singapore and Thailand that recorded contributed to 49% and 38 of their countries’, respectively (NSDC, 2010; Nadada, 2013). However, even though SMEs are recognized as a principal agent of growth in many countries (Panitchpakdi, 2006; Hilmi, Ramayah, Mustapha, & Pawanchik, 2010; Mahmood, & Hanafi, 2013), their contribution to the Nigerian economy is still comparatively small compared to the contributions of SMEs in industrialized countries, as well as in other developed and developing countries (Eniola, 2014; Agwu & Emeti, 2014), and as stated by Ibru (2013) stated that the failure of SMEs has generated genuine concerns for Nigerians.