IMPACT OF SERVICE QUALITY ON SMALL AND MEDIUM ENTERPRISES INTENTION TO PURCHASE INSURANCE IN NIGERIA

IMPACT OF SERVICE QUALITY ON SMALL AND MEDIUM ENTERPRISES INTENTION TO PURCHASE INSURANCE IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1 Background to the study

SMEs potential to generate employment, utilize local resources, ensure even distribution of industrial development, as well as their ability to facilitate the growth of non-oil exports had made both developed and developing countries pay special attention to SMEs subsector; such as the creation of Small Business Agency (SBA) in USA; Small Business Service (SBS) in the UK; and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in Nigeria (Aremu & Sidikat, 2011; Legg, Battista, Harris, Lamm, Massey, & Olsen, 2009; Anna, 2014). SMEs account for at least 95% of India‟s industrial units and contributes 45% of their manufacturing output as well as about 40% of their export (Nikaido, Pais, & Sarma, 2015). Sipa, Gorzen-Mitka, and Skibinski (2015) and Bates and Nucci (1989) also established that in the European Union, SMEs contribute to over 99% of all enterprises. Duale and Karemu (2015) identified Japan, Zambia, South Korea, Malaysia, as some of the countries that have benefited immensely from SMEs in terms of their contributions towards employment generation, export earnings, and Gross Domestic Product (GDP). Despite these enormous contributions of SMEs to the economic, the rate at which they fail shortly after their establishment in Nigeria is alarming (Aremu & Sidikat, 2011; Achie & Sado, 2014). Empirical research had shown that managerial inability and financial constraints are not the only major factors militating against the success of SMEs in Nigeria (Ihua,2009). Ihua (2009) identified external factors such as crises and disasters as the major causes of SMEs‟ failure in Nigeria. Also, Azende (2012), revealed that the inability of SMEs operators to efficiently manage the risks they are exposed to as well as their unwillingness to purchase insurance policies for their business operations contribute greatly to their failure.Amaefula, Okezie, and Mejeha (2012), argued that intention regarding insurance depend largely on the extent to which individuals perceive insurance firms‟ service quality as well as their willingness to bear risks. Insurable risks could take various dimensions ranging from fire outbreak, theft of business assets, damage of goods on transit, crisis and disaster outbreaks, etc resulting to loss of businesses and business properties. According to Ihua (2009), Azende (2012), and Kadams (2014) insurance protection could guaranty the continuous existence of some of the businesses that had failed.Bala, Sandhu, and Nagpal (2011), and Toran cited in Siddiqui et al (2010), asserted that quality should be at the core of what the insurance industry does. Their findings showed that the quality of services and the achievement of customer satisfaction and loyalty are fundamental for the survival of insurers. Despite the call on insurance industry to render quality service, the high rate of insurable risks that SMEs are exposed to in Kaduna state as well as the age of insurance industry in Nigeria in which according to Obasi (2010), Usman (2009), and Arena (2008) all argued that the industry in Nigeria started early 1920s which is older than those of China, India and Malaysia.

Format: MS Word

Chapters: 1 - 5, Preliminary Pages, Abstract, References
Delivery: Email

No. of Pages: 115

NB: The Complete Thesis is well written and ready to use. 

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Masters Project Topics in Accounting and Finance

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