Strategy's for Nigerian Agribusiness Industry

Added on - 13 Sep 2019

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Chapter 2: Literature ReviewIntroduction to The Nigerian Agribusiness industryNigeria has the biggest economy in Africa where agriculture remains the largest sector of itsNigerian economy and employs two-thirds of the total labour force; the production hurdleshave significantly stifled the performance of the sector. Over the past 20 years, value-added percapita in agriculture has risen by less than 1% per cent annually(Elkington, 2018).The subsistence farming segment is needed for the awareness of quick populace development.The subsistence farming or the subsistence agriculture is considered as the mode of agricultureunder the plot of land as it produces only for food in order to feed the family or the smallcommunity under working on it. The successful subsistence farming system can be shared witha similar type of structural traits(McAdam, Bititci, & Galbraith, 2017).It is found from thehistory that Nigeria is well in agribusiness management. It is one of the countries which areengaged in the activity of agribusiness. Responding to the needs of the hour it becomes primeimportance for the Nigerian Small and medium agribusiness enterprises to gointernationalization. It is often found that while planning to internationalize, the process mayinvolve a lot of challenges and barriers. But Nigerian small and medium scale agricultural-basedenterprises should respond to the challenges in an effective manner and some of these barrierscan be identified belowInternationalization and its benefits in SMEs:One of the big benefits for internationalization is free trade. The barriers and the tariffs withinthe countries as well as continents provide more freedom in order to import or export various
products from. There is modern technology and the engineering are found to provide the worldwith the opportunity for moving the products as well as the information with faster andcheaper rate. It also provides the companies in case of the possibility of easily expandingproducts and services for the larger customer base. The consumer can achieve the profits fromthe free trade as like the companies as they can lower the process for the products as well asservices through the more open market (Baumgartner & Rauter, 2017). It is the ability forchoosing the products and services from the large selection which will push the companies incase of competing with each other; it will lead the lower prices for other kinds for benefitsconsumers.The labour and the knowledge movement can move around and thus it has provides theknowledge and skills for the highest bidder. Thus it is easier for future workforces in order toeducate themselves or they will get more knowledge from other places because of theknowledge movement due to the internationalization (Kotabe & Murray, 2018).Barriers of SMEs Internationalization:Some example of SMEs barriers are- financial barriers, managerial barriers, industry and firmspecify barriers and so on. The financial barriers thus have been checked as particularlysignificant for the SME where there are the novel products as well as technologies (Cheong,Song, & Hu, 2016). In this respect, from some past research, it has been found that it holds forthe organization as it relies heavily in the case of advanced knowledge as per the instance fromthe research institutes or for the universities. The researchers Kotabe & Murray (2018), in his
research conclusion and findings highlighted that it is very important to remove the barriers forinternationalization in an effective manner. It is because removing the barriers by implementingthe strategies as those are needed of the hour to make the small and medium agricultureenterprise effective and healthy (Kotabe & Murray, 2018).It is the Intellectual Property Right (IPRs) which is more significant at this respect. So this area isfound to exist as the considerable body for review. These SMEs needs to check the form of IPRin practice in situations where they employ innovation. Those firms are found significantly inthat respect. So SMEs is needed to check that it is not affected by the financial constraints(Meyer & Peng, 2016). Those firms which are found to engage in both the case of innovation aswell as internationalization is found as the innovation activities which are hampered by thefinancial issues.Nigerian SMEs have thought of new ways or better methodologies for preparing forinternationalization with the objective that they are appealing to the worldwide market. Ittakes an ambitious concentrated firm in Nigeria to present a huge amount of money forconveying without considering the high risk portrayed in going abroad and internationalizing(Ali, 2018).Most SMEs will go to the level of getting loans from the banks, using their homes asassurance security without considering the last result of losing their homes with the trueobjective of developing international markets (Brea Solís, Casadesus Masanell, & Grifell Tatjé,‐‐‐2015). Ambitious centred SMEs in Nigeria can progress along these lines be recognized as firmswith a capacity to proactively look for a business establishment that is innovative paying littleattention to the risks included. For a firm to have the ability execute its plans to go into foreignmarkets, the firm needs to have the ability and capacity to internationalize, such as a strong
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