Factors Hindering Export Development in Africa: Empirical Evidence ...

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Table 4 shows that there are significant differences between exporting firms and nonexportingfirms at p < 0.05 with respect to bureaucracy, foreign competition, exchange rates, corruption,and infrastructure (roads and power supply) exporting firms and their counterparts. As depictedin Tables 5 exporting firms have higher means than their counterparts. Hypotheses 3 and 4 arelargely supported. Overall, in hypotheses 4 and 5 the exporting firms have higher means scoresthan the non-exporting firms.DISCUSSIONThe purpose of this exploratory research is to investigate barriers hindering small businessesfrom entering the export market. From the results of the study, one may conclude that there arevarious obstacles facing SMEs who want to participate in export markets. These barriers include(lack of finance, lack of qualified personnel for export activities, unwillingness of banks supportexport activities, fear of foreign competition, lack of productive capacity, poor infrastructure,corruption, bureaucratic bottlenecks, and lack of knowledge on how to export). With respect tolack of knowledge, export knowledge can be described as dependent on the relevance and depthof information available to the firm.Concerning financial support for developing export markets, many of the firms’ surveyed fir thisstudy indicated that lack of timely and adequate working capital constitute a problem for them.This not only adds costs but can also endanger the entire production operation. With regard topersonnel issue, the success of the firm’s export activities depends on the attitudes andcharacteristics of its staff. Export knowledge barriers can be attributed to a large extent to thelack of trained and experienced personnel. The majority of the respondents indicated the lack ofqualified decision makers was a barrier to export participation. We found that firms who havequalified personnel to handle export activities were more engaged in export markets than thosewho did not have qualified staff. One may therefore surmise that well trained personnel areessential for export development.With reference to external barriers, a substantial number of exporting problems are said to berooted in the external environment. The nature of these problems tend to vary widely: distinctiveforeign consumer preferences, unfamiliar business protocols and practices, regulatory importcontrols by overseas fierce competition, exchange rate fluctuations and limited hard currency forinternational trade. In order to develop a proper export marketing strategy, solutions relating tothese obstacles must be found.Finally, exporting requires knowledge about export procedures. One of the most thingsmentioned by the respondents as a major obstacles to exporting concerns the time and paperworkrequired to comply with foreign and domestic market regulations. Governments do not solelyimpose these procedural requirements. Also independent organizations such as banks, shippingand insurance companies, have their own procedures. Reduction in time a paperworkrequirements may encourage nonexporters to engage in export markets.
CONCLUSIONS AND IMPLICATIONSThis exploratory study has attempted to investigate the perceptions of a number of factorsimpeding the development of export activities of manufacturing firms in Nigeria. This is an issueof paramount importance in international business and economic development of a developingeconomy like Nigeria since the way these barriers are perceived by exporting and non-exportingfirms often determines their future engagement and performance in international businessactivities. The study revealed that increasing competition in world markets, coupled with theinability to offer competitive prices abroad, were the two most serious barriers to export activity.The limited availability of foreign market information also constituted a major impediment,contributing to a higher level of uncertainty surrounding international business operations.Various implications are derived from the findings of the present study which concern policymakers, business executives and researchers. With regard to policy makers, certain policymeasures should be taken in order to reduce or alleviate the perceived inhibiting impact ofbarriers on manufacturing firms. Particular emphasis should be given, for example, to theimprovement of competitiveness of indigenous firms, the supply of information for thelocation/analysis of foreign markets and the provision of various tax and other financialincentives. These programs should be designed according to the specific organizationalrequirements of exporting and non-exporting firms. For instance, foreign market-relatedinformation should be directed more to firms with relatively few years in business, while theprovision of financial assistance should target smaller rather than larger firms.At the managerial level, efforts should be made to minimize the inhibiting effect of exportbarriers (particularly those of internal origin) on pre-export behavior, using various managementconsultancy and advisory services. These should aim at assisting managers in non-exportingorganizations to improve managerial skills, formulate sound export marketing strategies,understand the mechanics of exporting, and learn how to handle export documentation and soforth. Moreover, various professional business seminars undertaken by chambers of commerce,trade associations and other similar organizations should stress the benefits derived from exportsthrough the illustration, for example, of successful cases in exporting. Particular emphasis shouldbe placed on smaller and inexperienced firms which, owing to their inherent managerial,financial, personnel and other limitations, tend to overestimate export barriers.Finally, more research should focus on the inhibiting role of export barriers at the pre-exportstage. For instance, barrier perceptions could be investigated in accordance with non-exporters'degree of willingness to export. Moreover, it would be useful to examine the discriminatingeffect of other factors on export barriers, such as managerial and environmental determinants. Itwould also be advisable to incorporate in this analysis some of the developments of this study,such as the compiled list of barrier factors and the proposed classification matrix. Furthermore, itwould be useful to investigate the impact of barrier factors on pre-export behavior over a longperiod of time, by carrying out longitudinal studies.To understand export barriers facing SMEs and undertake effective export assistance a close cooperationbetween the government, its promotional agencies, the business community, and theprivate sector at large is significant. Thus, administrations, managers, and other stakeholders inNigeria need to learn the skills of their counterparts in developed as well as developing countries.
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Page 7 and 8: of (3.76). It is important to point
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