Internationalisation of Small and Medium Enterprises (SMEs) in Kano, Nigeria

a focus on export in the foam industry

Abstract

Nigeria's foam small and medium enterprises (SMEs) are at the core of economic diversification but face extreme internationalisation challenges. This study investigates export readiness, challenges, and policy support programmes in the Kano State foam industry SMEs with three objectives: assessing the export readiness, exploring the challenges and barriers, and evaluating the effectiveness of government policies and support programmes. Semi-structured interviews were conducted with eight SME owners and CEOs.  The findings of the research illustrate a basic paradox: while Kano's foam industry SMEs engage in international trade via foreign intermediaries, systemic inefficiencies discourage direct export capability development. These include (1) indirect exporting due to corruption (bribery at customs); (2) financing constraints (low access to credit); and (3) infrastructural deficiencies (unreliable electricity, poor logistics) compounded by misaligned government policies that are intensely politicised. The study challenges traditional internationalisation theories by demonstrating how institutional voids in emerging markets skew firm-level strategies. It also demonstrates that sector-specific interventions are required such as the streamlining of export procedures, an anti-corruption focus on trade logistics, and inclusive policy design incorporating SMEs. These findings chart a course for Nigeria to harness non-oil exports and have broader implications for African manufacturing SMEs facing analogous structural constraints.