Financial Management

INNOVATION AND BUSINESS GROWTH IN THE FASHION INDUSTRY: A CASE STUDY OF NSUKKA, ENUGU STATE

By

NKIRUKA STELLA NGENE
Learn to Live Business School, UK.

October, 2024

Correspondence: nkiruka.ngene@unn.edu.ng;
+234703 862 7767

ABSTRACT

In a rapidly evolving global fashion landscape, local businesses should find strategies to overcome the significant challenges in adopting innovative practices essential for competitiveness and sustainable growth. This study explored the importance of innovation in driving business growth in Nsukka’s fashion industry, Enugu State, Nigeria. The study adopted a case study approach with a survey questionnaire as an instrument. The population for the study was 269 respondents, randomly drawn following the suggested sample from G*Power. The questionnaire used for the data collected was validated, and tested for reliability using Cronbach’s alpha. An overall reliability coefficient of 0.947 was obtained. Data analysis was based on percentages, mean, and ANOVA statistics. Findings showed that different types of fashion businesses operate in Nsukka, and recognize the value of social media, digital marketing, and e-commerce as innovations, while other innovative tools are underutilized or unknown. Barriers to innovation adoption include lack of funds and government support. Major strategies to enhance innovation adoption and drive fashion business growth were access to funds with low interest rates, partnerships, and access to different technologies and experts. This research contributes to a deeper understanding of how innovation can drive regional economic development in emerging fashion markets.

Keywords: Business growth, Fashion Industry, Innovation, Nsukka

INTRODUCTION

Fashion is beyond the looks of an individual. Fashion is the art and practice of designing, creating, and wearing clothing, accessories, and footwear that reflect personal style, cultural influences, and current trends. According to Sumathi (2007), fashion is a prevailing style or custom adopted by a significant portion of society at any given time. It reflects not only clothing but also various aspects of life, such as behavior, accessories, and home decor, influenced by cultural, social, and economic factors. Fashion serves as a mode of self-expression, representing the individual’s personality and societal identity while continually evolving with changing trends. Maintaining and sustaining styles and trends in fashion requires an industrial approach; thus a fashion industry refers to the sector that encompasses the design, production, marketing, and retail of clothing, footwear, accessories, and related products. Čiarnienė and Vienažindienė (2014) explained that fashion and its industry is a key component of the broader social and cultural phenomenon called the “fashion system,” where the fashion system includes both the business and artistic aspects of fashion, as well as the processes of production and consumption. Aside from the fashion industry paying attention to the culture of the populace, there are challenges of supply chain complexities and sustainability issues, as well as digital transformations and innovations that are vital to succeeding in the industry.

Innovation involves the creation or significant enhancement of products, services, processes, or business models, offering new value to organizations, industries, or consumers. Ionela-Andreea (2019) emphasizes that innovation is closely tied to design and creativity, as it involves developing, implementing, and communicating fresh ideas to achieve goals like reaching new customers, entering bigger markets, or gaining a competitive advantage. In the fashion industry, innovation spans various areas, such as technological advancements, sustainable materials, digital marketing, and improved customer experiences (Colombi & Casciani, 2021). It can be incremental, gradual improvements, or disruptive, reshaping industry standards (Ionela-Andreea, 2019). The fashion sector’s innovations are often fueled by digital transformation, including the rise of e-commerce, social media, and technologies like AI, virtual fitting rooms, and 3D printing. These innovations have transformed consumer shopping habits, brand marketing strategies, and the fashion supply chain. Fashion is no longer confined to physical stores or seasonal releases, as consumers access brands and trends online. However, a critical question remains: how many of these innovations are accessible to small and medium enterprises (SMEs), particularly within the fashion industry?

Despite the global competition aims of industries, innovation adoption in the fashion industry has predominantly been embraced by large-scale enterprises. Zahra et al. (2021) noted that small and medium enterprises (SMEs) in the fashion sector tend to lag in adopting innovative practices. The literature emphasizes the benefits of innovation for SMEs, such as improved business performance through faster response times, increased transparency, real-time market analytics for product development, enhanced productivity, cost savings, streamlined monitoring, quicker product development cycles, and greater access to international markets (Mittal et al., 2018; Zahra et al., 2021). Okanazu (2018) found that the most common innovations among SMEs in Enugu State included digitizing products and making them accessible via mobile platforms. However, SMEs in fashion businesses like tailors, fabrics/accessories sellers, and boutiques face challenges unique to the industry. According to Zahra et al., (2021), these challenges include short product life cycles, unpredictable market demands, high trend uncertainty, and a volatile supply chain. Despite these hurdles, research consistently highlights the positive impact of innovation on expanding the fashion industry’s reach, enabling consumer engagement in novel ways, and fostering business growth, even on a global scale. Furthermore, Spescha and Woerter (2018) emphasize that innovation acts as a catalyst for business growth.

Business growth refers to a company’s expansion and increased profitability, marked by higher revenue, market share, and operational scale. In the fashion industry, growth is achieved through market expansion, product diversification, innovation, and improved operational efficiency. This growth can be organic, involving geographical expansion, increased product offerings, or inorganic, through mergers and acquisitions (Hubbard & Hubbard, 2013). Additionally, fashion industry growth involves enhancing brand equity, fostering customer loyalty, and adopting scalable, sustainable business models for long-term success (Yang & Jang, 2020). Key growth metrics include financial performance, expanding the customer base, and strengthening market position relative to competitors (Morgan et al., 2009). In Nigeria, evidence suggests that the fashion industry has significant growth potential.

Fashion (2024) reports that Nigeria’s fashion market is booming, with projected revenues expected to reach US$1.194 billion by 2024, showing consistent annual growth of around 17% over the past decade. This impressive growth has been largely driven by small and medium enterprises (SMEs) that play a crucial role in creating jobs and fueling economic growth (Zahra et al., 2021). Empowering SMEs with the necessary technologies can significantly enhance their development and competitiveness in the marketplace. Innovation is key to unlocking new possibilities and improving business processes, with business growth often reflecting the success of these innovations in expanding and scaling a brand. Given this potential, a critical question arises: What innovations are SMEs in fashion businesses within Nsukka adopted or willing to adopt, and what outcomes can be expected from innovating in the face of current challenges?

Nsukka, Enugu State, is a culturally rich and economically vibrant region, home to numerous small-scale fashion entrepreneurs. While the local fashion industry draws heavily on traditional aesthetics and craftsmanship, it faces challenges in adopting innovative practices that could scale operations and enhance business growth. Many fashion businesses in Nsukka operate with limited resources, often relying on outdated production techniques and traditional marketing methods. These limitations impede their ability to compete effectively in a globalized market that increasingly demands innovation. As a result, fashion businesses in Nsukka struggle to reach their full potential, missing out on opportunities for growth, profitability, and wider market reach.

This study is particularly vital given the rising importance of innovation in the global fashion industry. Technological advancements such as 3D printing, artificial intelligence, and digital platforms have revolutionized how fashion products are designed, produced, and marketed. Furthermore, there is a growing demand for sustainability, with consumers favoring brands that incorporate ethical sourcing, environmentally friendly materials, and circular economy practices. For Nsukka’s fashion sector to thrive in this context, there is a pressing need to explore how innovation can be leveraged to overcome the barriers local businesses face and drive sustainable growth. By focusing on Nsukka, this research aims to uncover the unique challenges and opportunities for innovation in the town’s fashion industry, providing insights that can benefit other emerging fashion markets facing similar conditions.

STATEMENT OF THE PROBLEM

Like many other emerging markets, the fashion industry in Nsukka, Enugu State faces significant challenges in achieving sustainable business growth. Many fashion businesses, from small-scale designers to retail outlets, struggle to remain competitive in an increasingly globalized market. A lack of innovation, limited access to cutting-edge technology, inadequate business management skills, and an over-reliance on traditional methods of production and sales have impeded growth and reduced profitability for these businesses.

In Nsukka, most fashion enterprises operate with limited resources and often lack the knowledge or tools to adopt innovative practices, such as digital marketing, advanced production techniques, or sustainable sourcing. As a result, they are unable to effectively compete with larger brands that have embraced innovation to improve operational efficiency, reduce costs, and meet evolving consumer demands. Furthermore, the fashion sector in this region has not fully explored the potential of technological advancements like e-commerce, artificial intelligence, or sustainable design practices to create value and drive business growth.

This study is driven by the need to address these gaps and explore how innovation can catalyze business growth in the fashion industry in Nsukka. By examining the barriers to innovation adoption and understanding the specific challenges faced by fashion businesses in this area, this research aims to identify strategic solutions that could foster innovation, enhance competitiveness, and ultimately stimulate business growth in the local fashion sector.

PURPOSE OF THE STUDY

This study explores the link between innovation and business growth in the fashion industry among SMEs in Nsukka, Enugu State. Specifically, the study determines the:

the current state of innovation adoption among fashion businesses in Nsukka.
Barriers to innovation among fashion businesses in Nsukka.
Strategies for enhancing innovation and business growth among fashion businesses in Nsukka.
Impact of innovation on business growth among fashion businesses in Nsukka.

RESEARCH QUESTIONS

The following research questions were answered in this study:

What is the current state of innovation adoption among fashion businesses in Nsukka?
What are the barriers to innovation among fashion businesses in Nsukka?
What are the strategies for enhancing innovation and business growth among fashion businesses in Nsukka?
How does innovation impact business growth among Nsukka fashion businesses?

HYPOTHESES

The following hypotheses were tested at a 0.05 level of significance:

There is no significant difference in the current state of innovation adoption among fashion businesses in Nsukka.
There is no significant difference in the barriers to innovation among fashion businesses in Nsukka.
There is no significant difference in the strategies for enhancing innovation and business growth among fashion businesses in Nsukka.
The impact of innovation on business growth does not differ significantly among fashion businesses in Nsukka.

METHODOLOGY

RESEARCH DESIGN

This study adopted a case study research design based on survey responses of fashion business owners and workers within Nsukka Local Government Area, Enugu State. A case study design allows for a comprehensive and detailed examination of issues of interest (Priya, 2021). It enables the researcher to explore the unique characteristics, challenges, and opportunities specific to fashion businesses within Nsukka. This approach is ideal for investigating phenomena, such as innovation adoption, in real-world settings. Given the focus on Nsukka, the case study design provides the flexibility to analyze the local dynamics, industry-specific factors, and individual business strategies, which might not be fully captured through broader research methods.

Likewise, using a survey questionnaire allows for the collection of quantifiable data from a larger sample of fashion businesses. This method ensures that responses are standardized, making it easier to compare across different groups or subcategories, such as tailoring, fabric/accessories sellers, and boutiques. The survey enables the collection of specific information about the state of innovation, technological adoption, and business practices, providing a clear picture of how widely innovation is embraced among fashion businesses in Nsukka. Moreover, the survey can capture data on both perceptions and actual business practices, offering insights into the barriers, and expected impact of innovation.

AREA OF THE STUDY

Nsukka, a suburban city in Southeastern Enugu State, Nigeria, was chosen for this study due to its growing population, urbanization, and expanding commercial activities. These factors have fueled a thriving fashion business sector, with numerous tailoring shops, fabric sellers, and boutiques emerging in response to rising demand. As the sub-urban grows, the fashion industry flourishes alongside it, becoming a vital part of the local economy. Nsukka serves as a reflection of the broader urbanization trends across Nigeria, where fashion entrepreneurs are capitalizing on the city’s development to cater to its increasingly fashion-conscious population.

POPULATION AND SAMPLING METHOD

There are three quarters in the Nsukka metropolis namely Onuiyi, Odenigbo, and Ogige, with a population of about 450,000 (Nsukka Local Government Area, Nigeria, n.d.). The population for this study was determined using G*Power, a widely recognized statistical tool designed to calculate the appropriate sample size needed for various types of statistical analyses. G*Power was specifically utilized to compute the “A priori sample size required for conducting an ANOVA (Analysis of Variance) test with a fixed effect omnibus approach and one-way test design” (Faul et al., 2007). This type of ANOVA is used to assess whether there are any statistically significant differences between the means of multiple groups. After running the calculations through G*Power, the tool generated a sample size of 252, which is deemed appropriate to ensure sufficient statistical power and reliability for the study’s analysis. This method ensures that the sample size is neither too small (which could lead to inaccurate results) nor unnecessarily large, maintaining efficiency while maximizing the study’s ability to detect significant differences.

However, to ensure that an adequate population sample was realized, 10% of 252 was added to account for errors in completing the instrument, not retrieving copies, etc. Thus, a total population of 277 was sampled for the study. A total of 269 valid questionnaires were duly completed, comprising 121 Tailors, 53 fabrics/accessories dealers, 85 boutique owners/staff, and 10 others including laundry service providers, shoemakers, etc. The details of the population are shown in Table 1, Figures 1 and 2.

INSTRUMENT FOR DATA COLLECTION

The instrument for the data collection was a structured questionnaire developed from the literature review. The instrument is titled Innovation for Business Growth Questionnaire (i4BuG). It began with an opening statement assuring respondents of the voluntary nature of their responses, as well as the anonymity and confidentiality promises. It has two sections, A and B. Section A ascertains demographic information of the respondents such as the type of fashion business, how long the business has been, and the number of employees. Section B has 40 items spread over 4 four parts, denoted I – IV, according to the specific purposes. Part I has 11 items to ascertain the state of current innovation adoption among fashion businesses in Nsukka. Respondents were asked to select from the list, the innovation they have used in business using two response options of Yes (2) or No (1). Part II has 10 items that ascertain barriers to innovation in fashion businesses, Part III has 8 items that ascertain the strategies for enhancing innovation and growth in fashion businesses, while Part IV consists of 11 items that elicit the impact of innovation on the growth of fashion businesses. Parts II-IV elicited responses using a 5-point Likert scale of SA (Strongly Agree) = 5; A (Agree) = 4; N (Neutral) = 3; D (Disagree) = 2; SD (Strong Disagree) = 1. Thus, respondents were asked to indicate the extent to which they agreed with the statements.

The instrument was face-validated by three experts from two Departments at the University of Nigeria, Nsukka. The experts’ views and corrections were integrated into the final copy of the instrument. The reliability of the instrument was tested using Cronbach’s alpha. The reliability test showed an overall reliability coefficient of 0.947, which is judged acceptable for the study. Data collection was through direct administration and retrieval using 12 research assistants. The research assistants were briefed on the motive of the data collection, the voluntary nature, anonymity and confidential statements, before being sent across the three parts of the suburban city. Data collection lasted for one week.

METHOD OF DATA ANALYSIS

The collected data were analyzed using simple percentages for demographic information, as well as mean, standard deviation, and one-way ANOVA to compare the responses of different groups. Simple percentages were used to illustrate the demographic characteristics of the respondents and the state of innovation adoption thus far. The mean and standard deviation were applied to assess the level of agreement expressed by respondents on the questionnaire items. Using a 5-point rating scale, a mean score of 3.50 was considered the threshold, with scores of 3.50 or higher indicating “Agreed,” while scores below 3.50 signified “Disagreed.” For research question 1, the percentage of “Yes” below 50% is termed Poor, above 50% Adequate, while exactly 50% is termed average. Additionally, ANOVA was employed to compare the responses from three different groups, and the significant differences between these groups were tested at a 0.05 significance level.

RESULTS

DEMOGRAPHIC INFORMATION

Table 1 shows the types of fashion businesses prevalent in Nsukka. Tailoring had the highest frequency among the fashion businesses while boutique owners/staff came second. Others who were found relevant in the fashion businesses include shoemakers, laundry shops, hairdressers, and barbers.

Table 1

Sampled Fashion Business Types

S/N	Fashion Business Type	Frequency	Percentage
1.	Tailoring	121	45.0
2.	Fabric/Accessories Sales	53	19.7
3.	Boutique	85	31.6
4.	Others	10	3.7
	Total	269	100.0

Figures 1 and 2 reveal the age of the fashion businesses and their respective number of employees or workers. Most of the businesses were still incubating as only 7% (18) had operated for more than 6 years. On the other hand, no fashion business has more than 10 employees, indicating that the fashion business in Nsukka could mainly be classified as small and medium scale enterprises.

Figure 1

Age of Fashion Businesses Sampled

Figure 2

Number of Employees in the Fashion Businesses Sampled

RESEARCH QUESTIONS AND HYPOTHESES

RQ1– What is the current state of innovation adoption among fashion businesses in Nsukka?

Table 2

Percentage of Innovation Adoption Status in Fashion Businesses

S/N	Innovations in Fashion Businesses	Yes	%	No	%	Status
1.	Live stream of designs and processes	23	8.6	246	91.4	Poor
2	Augmented reality	0	0	269	100	Poor
3	Virtual Fashion	6	2.2	263	97.8	Poor
4	Artificial Intelligence	0	0	269	100	Poor
5.	Online Sales /Marketplace (e-commerce)	25	9.3	244	90.7	Poor
86	Virtual influencers	23	8.6	246	91.4	Poor
7	Real-time tracking/inventory management	7	2.6	262	97.4	Poor
8	Use of sustainable materials	10	3.7	259	96.3	Poor
9	3D printing	18	6.7	251	93.3	Poor
10.	Social media marketing (Instagram, Facebook, WhatsApp, Twitter)	36	13.4	233	86.6	Poor
11.	Digital Marketing	29	10.8	240	89.2	Poor

Results in Table 2 reveal that Innovation adoption among fashion businesses in Nsukka is notably low. Most modern technologies, such as augmented reality, virtual fashion, and artificial intelligence, are barely used, with 0% to 2.2% of businesses adopting these innovations. Even more commonly adopted innovations, such as e-commerce platforms (9.3%) and digital marketing (10.8%), still show relatively low penetration. The highest adoption rate is for social media marketing (13.4%), suggesting that while businesses recognize the value of social media, other innovative tools are being underutilized or are not even known at all.

H_o1 – There is no significant difference in the current state of innovation adoption among fashion businesses in Nsukka.

Table 3

Descriptive and ANOVA Results of Current State of Innovation Adoption among Fashion Businesses

S/N		Business Type	Descriptive			ANOVA
S/N		Business Type	No.	Mean	SD		df	F	Sig.	Remark
1	Tailoring		121	1.72	.18	Between Groups	3	4.438	.005	S
2	Fabrics/Accessories		53	1.76	.19	Within Groups	265
3	Boutique		85	1.80	.15	Total	268
4	Others		10	1.84	.20
5	Total		269	1.76	.18

Key: No. = Frequency/Number of Respondents; SD = Standard Deviation; df = degree of freedom; F = critical value, Sig.= Probability level of significance; NS = Not Significant; S = Significant

Data in Table 3 shows the ANOVA results with a significant difference in innovation adoption across different business types (p = 0.005). This means that some business categories, like Tailoring, Fabrics/Accessories, and Boutiques, adopt innovations at different levels. However, the results also indicate that Boutiques (Mean = 1.80) have slightly higher innovation adoption compared to Tailoring (Mean = 1.72), Fabrics/Accessories (Mean = 1.76), and Other businesses (Mean = 1.84). This suggests that boutiques may be slightly more innovative than other types of fashion businesses in Nsukka. Based on the result in Table 3, hypothesis one was not accepted.

RQ₂ – What are the barriers to innovation among fashion businesses in Nsukka?

Table 4

Barriers to Innovation in Fashion Businesses

S/N	Barriers to Innovation in Fashion Businesses	Mean	SD	Remarks
12.	Lack of funding	3.58	1.13	Agreed
13.	Limited knowledge	3.38	1.28	Disagreed
14.	Fear of failure	3.22	1.33	Disagreed
15.	Fear of technology	3.77	.96	Agreed
16.	Lack of skilled personnel	3.57	1.06	Agreed
17.	Poor government support	3.62	1.11	Agreed
18.	Lack of training opportunities using innovative fashion tools	3.59	1.25	Agreed
19.	Limited access to the technology	3.82	.97	Agreed
20.	Lack of networking opportunities	3.83	1.0	Agreed
21.	Poor access to quality information	3.77	1.0	Agreed
	Cluster_Barriers	3.61	.77	Agreed

Table 4 shows the barriers to innovation in fashion businesses among which the top barriers include: lack of funding (Mean = 3.58), fear of technology (3.77), lack of skilled personnel (3.57), poor government support (3.62), and limited access to technology (3.82). These barriers highlight the challenges that fashion businesses in Nsukka face in adopting innovations. The cluster mean (3.61) further shows that most respondents agree that these factors significantly hinder innovation.

H_O2 – There is no significant difference in the barriers to innovation among fashion businesses in Nsukka.

Table 5

Descriptive and ANOVA Results of the Barriers to Innovation in Fashion Businesses

S/N		Business Type	Descriptive			ANOVA
S/N		Business Type	No.	Mean	SD		df	F	Sig.	Remark
1	Tailoring		121	3.52	.83	Between Groups	3	1.577	.195	NS
2	Fabrics/Accessories		53	3.75	.46	Within Groups	265
3	Boutique		85	3.69	.80	Total	268
4	Others		10	3.42	.94
5	Total		269	3.61	.77

Key: No. = Frequency/Number of Respondents; SD = Standard Deviation; df = degree of freedom; F = critical value, Sig.= Probability level of significance; NS = Not Significant; S = Significant

The descriptive results in Table 5 show that the business type notwithstanding, Tailoring (Mean = 3.52), Fabrics/Accessories sales (3.75), and Boutiques (3.69), the perceived barriers are comparable. This suggests that barriers like funding, technology access, and skilled personnel shortages are universally problematic. Also in Table 5, the ANOVA results revealed that there was no statistically significant difference in mean barriers across different business types (p = 0.195), indicating that all fashion businesses, regardless of type, face similar obstacles. Hence, the null hypothesis was accepted.

RQ₃ – What are the strategies for enhancing innovation and business growth among fashion businesses in Nsukka?

Table 6

Strategies for Enhancing Innovation and Growth in Fashion Businesses

S/N	Strategies for Enhancing Innovation and Growth in Fashion Businesses	Mean	SD	Remarks
22.	Access to funding, with zero or single-digit interests	3.98	1.06	Agreed
23.	Training programmes on available innovative fashion according to the level of recipients	3.51	1.16	Agreed
24.	Access to technology such as inventory management software, Digital design tools, Customer relationship management software, etc.	3.73	1.10	Agreed
25.	Partnerships with universities, fashion institutes, or industry experts	3.75	1.08	Agreed
26.	Provide a guide for skills in e-commerce platforms, social media marketing tools, etc.	3.35	1.10	Disagreed
27.	Providing short courses and workshops on fashion design and business management	3.45	1.33	Disagreed
28.	Effective and efficient networking opportunities	3.95	1.15	Agreed
29.	An organized provision to shared resources and innovative expertise.	3.81	1.21	Agreed
	Cluster_Strategies	3.74	.71	Agreed

Table 6 shows that six of the eight strategies were agreed to be helpful in adopting innovation across the fashion businesses in Nsukka. In order of priority, the six strategies are access to funding with zero or single-digit interest rates (Mean = 3.98), effective networking opportunities (3.95), shared resources and innovative expertise (3.81), partnerships with universities, fashion institutes, or industry experts (3.75), and access to different technology (3.73). These strategies suggest that businesses recognize the importance of external resources and support, such as funding and technology, as critical to boosting innovation.

Data in Table 6 also show that some strategies were less supported: providing guides for e-commerce platforms and social media marketing tools (Mean = 3.35) and short courses and workshops on fashion design and business management (3.45). These may indicate that businesses either already have access to some of these tools or do not see these as a high priority for innovation.

H_o3 – There is no significant difference in the strategies for enhancing innovation and business growth among fashion businesses in Nsukka.

Table 7

Descriptive and ANOVA Results on Strategies for Enhancing Innovation Adoption in Fashion Businesses

S/N		Business Type	Descriptive			ANOVA
S/N		Business Type	No.	Mean	SD		df	F	Sig.	Remark
1	Tailoring		121	3.80	.68	Between Groups	3	2.927	.034	S
2	Fabrics/Accessories		53	3.85	.70	Within Groups	265
3	Boutique		85	3.63	.72	Total	268
4	Others		10	3.23	.66
5	Total		269	3.74	.71

Key: No. = Frequency/Number of Respondents; SD = Standard Deviation; df = degree of freedom; F = critical value, Sig.= Probability level of significance; NS = Not Significant; S = Significant

Data in Table 7 reveal that Tailoring (Mean = 3.80) and Fabrics/Accessories sales (3.85) businesses have higher scores for strategy adoption, while Boutiques (3.63) and Other businesses (3.23) have lower scores. This indicates that tailoring and fabrics/accessories businesses may be more proactive in implementing growth strategies compared to other business types. The ANOVA results show a significant difference (p = 0.034) in strategy adoption among different business types. This suggests that some business types may be more inclined to adopt certain strategies. Based on the variant acceptance of the strategies across the fashion business types, the null hypothesis was not accepted.

RQ₄ – How does innovation impact business growth among Nsukka fashion businesses?

Table 8

Impact of Innovation on the Growth of Fashion Businesses

S/N	Impact of Innovation on the Growth of Fashion Businesses	Mean	SD	Remarks
30.	Improves customer satisfaction	3.81	.95	Agreed
31.	Helps in attracting new customers	3.61	1.16	Agreed
32.	Contributes to increased revenue in business	3.87	.83	Agreed
33.	Helps businesses to expand into new markets	3.64	1.23	Agreed
34.	Improves speed and efficiency in product development	3.72	1.03	Agreed
35.	Reduces the operational cost of fashion businesses	3.38	1.32	Disagreed
36.	Helps business to maintain a competitive edge	3.45	1.29	Disagreed
37.	Easy adaptation to changing fashion trends and consumer preferences	3.62	1.39	Agreed
38.	Improves business-to-customer interaction	3.29	1.37	Disagreed
39.	Helps in building strong customer relationships and loyalty	2.94	1.42	Disagreed
40.	Improves the overall shopping experience for your customers	3.50	1.19	Agreed
	Cluster_Impact	3.84	.87	Agreed

Table 8 shows that seven of the items were agreed to be impacts of adopting innovation across the fashion businesses in Nsukka. The respondents agreed that adopting innovation would impact fashion business growth by improving customer satisfaction (Mean = 3.81), attracting new customers (3.61), contributing to increased revenue (3.87), as well as improving speed and efficiency in product development (3.72) among others. These findings suggest that there is a clear idea of what is expected from innovation among fashion businesses in Nsukka.

Data in Table 8 also show that some impacts were less supported. For instance, respondents disagreed that innovation reduces the operational cost of fashion businesses (Mean = 3.38), indicating that they have an initial cost of acquisition and perhaps maintenance in their thoughts. Results also show a disagreement with the innovation’s help in building strong customer relationships and loyalty (Mean = 2.94), as the least accepted. These may indicate that the importance of innovation adoption is solely to pursue a personally conceived goal, hence the goal may not be generalized.

H_o4– The impact of innovation on business growth does not differ significantly among fashion businesses in Nsukka.

Table 9

Descriptive and ANOVA Results on Impacts of Innovation Adoption in Fashion Businesses

S/N		Business Type	Descriptive			ANOVA
S/N		Business Type	No.	Mean	SD		df	F	Sig.	Remark
1	Tailoring		121	3.40	.93	Between Groups	3	1.276	.283	NS
2	Fabrics/Accessories		53	3.67	.76	Within Groups	265
3	Boutique		85	3.46	.84	Total	268
4	Others		10	3.62	.98
5	Total		269	3.48	.87

Key: No. = Frequency/Number of Respondents; SD = Standard Deviation; df = degree of freedom; F = critical value, Sig.= Probability level of significance; NS = Not Significant; S = Significant

The descriptive results in Table 9 show that the impact of innovation varies across the business types: Tailoring (Mean = 3.40), Fabrics/Accessories sales (3.67), and Boutiques (3.46), Others (3.62), while the overall was below 3.50, further validating the ungeneralizable acceptance of what innovation would do for the fashion businesses. Also in Table 9, the ANOVA results revealed that there was a statistically significant difference in the mean impact of innovation across different fashion business types (p = 0.283), indicating that all fashion businesses do not attach the same level of importance to their pursuit of innovation. Hence, the null hypothesis was accepted.

FINDINGS OF THE STUDY

The following findings emerged from the study:

There are different types of fashion businesses in Nsukka, such as tailoring, fabric/accessories sales, boutiques, shoemaking, saloon/barbing, and laundry services.
Fashion businesses recognize the value of social media, digital marketing, and e-commerce as innovations, but many other innovative tools are underutilized or not even known.
Some barriers hinder fashion businesses in Nsukka from adopting innovations, including lack of funds, and lack of government support among others.
Fashion businesses agreed with strategies to enhance innovation adoption such as access to funds with low interest rates, partnerships, and access to different technologies and experts, even if they will be shared among several businesses.
The respondents agreed that adopting innovation would impact fashion business growth by improving customer satisfaction, revenue, and production time, showing a clear idea of what is expected from innovation among fashion businesses in Nsukka.
There is a significant difference in the current state of innovation adoption among fashion businesses in Nsukka.
There is no significant difference in the barriers to innovation among fashion businesses in Nsukka.
Fashion businesses in Nsukka have significantly different strategies for enhancing innovation and business growth.
The impact of innovation on business growth does not differ significantly among fashion businesses in Nsukka.

DISCUSSION

Different Types of Fashion Businesses

The findings from this study showed that there are different types of fashion businesses in Nsukka, such as tailoring, fabric/accessories sales, boutiques, shoemaking, saloon/barbing, and laundry services. The variety is not surprising given the general landscape of fashion businesses. A broader search across sources, such as websites and studies, confirms the prevalence of these businesses in Nsukka and the surrounding area. Spacey (2017) offers further validation by identifying 22 different types of fashion businesses that are popular globally, including bespoke and made-to-measure tailoring, footwear manufacturing, jewelry design, and costume-making. This comparison with Spacey’s categorization demonstrates that the fashion businesses in Nsukka are part of a broader spectrum of industry types that are not only thriving globally but are also locally adapted.

This finding is critical because it underscores the versatility of the fashion industry. Fashion is not limited to clothing design and production alone but includes a wide range of connected services and products that add value to the sector. The local adaptation of global fashion business types indicates both opportunity and diversity within the sector and proves that those in Nsukka are tapping into different areas of the fashion industry, contributing to economic growth and creating jobs. The variety of businesses also points to the different skill sets within the local fashion community, from artisanship in tailoring and shoemaking to the entrepreneurial skills required to manage boutiques and salons. This diversity further demonstrates the potential for growth in various niches within the fashion business. These businesses not only meet local demand but also offer avenues for innovation and economic contribution, reinforcing the industry’s importance in both local and global contexts.

Innovation adoption status across fashion businesses

Fashion businesses within Nsukka adopt varying levels of innovation, with a focus on digital tools like social media, digital marketing, and e-commerce. These innovations are recognized and utilized by many local businesses, particularly boutiques. However, more advanced technologies such as augmented reality (AR) and artificial intelligence (AI) remain underutilized or even unknown in many cases. This uneven adoption is a significant point, indicating a gap between potential innovation and its implementation within the local industry.

These findings align with the findings of Todeschini et al. (2017), who noted that while the fashion industry is generally innovation-driven, many businesses, especially smaller ones, are not fully aware of emerging trends like sustainability or cutting-edge technology applications. Similarly, Duml & Perlacia (2016) found that technological advances, including mobile technology and social media, have reshaped how fashion businesses interact with suppliers and customers. This shift has facilitated the growth of e-commerce, allowing fashion businesses to expand their reach and improve accessibility. The mention of Slyce (2015) further reinforces the idea that the internet has catalyzed new forms of commerce, notably e-commerce. This has opened new opportunities for fashion businesses in Nsukka to reach a broader market through online platforms, even though the full potential of digital innovation is not yet fully tapped. Lastly, while some fashion businesses in Nsukka are adapting well to basic digital tools, there is significant room for growth in the adoption of advanced innovations like AR and AI. The differences in innovation adoption between sectors, such as boutiques and tailoring, illustrate the varying degrees of digital transformation within the local fashion industry, a trend that may be alleviated if barriers are properly examined.

Barriers to innovation adoption in fashion businesses

The finding on the barriers that hinder innovation adoption among fashion businesses in Nsukka, highlights challenges such as lack of funds and government support. These barriers are common across different business types, suggesting that any strategy to improve innovation adoption should target all sectors within the fashion industry equally. The issues faced by fashion businesses in Nsukka mirror those in many developing economies and among small and medium-sized enterprises (SMEs), as identified by Sari & Asad (2018) and Zahra et al. (2021).

According to Zahra et al. (2021), many SMEs struggle to adopt innovation due to various constraints, particularly in developing economies. Sari & Asad (2018) identified key barriers, including human resource barriers – a shortage of skilled staff and a lack of necessary expertise limiting the ability to integrate innovations, operational resource barriers – the scarcity of raw materials and the difficulty in sourcing high-quality inputs further complicate innovation efforts; financial barrier – the high cost of innovation, lack of funding, and poor financial management are significant obstacles; imitation over innovation – where some businesses focus on copying competitors rather than investing in original innovation, limiting their potential for growth and differentiation.

These barriers are universal to many SMEs, particularly in developing contexts, where financial and resource limitations are more pronounced. In Nsukka, the lack of both financial resources and institutional support further compounds the challenge, making it difficult for fashion businesses to embrace innovative practices, regardless of their type. Overcoming these barriers requires comprehensive support mechanisms, among other strategies for enhancing innovation adoption.

Strategies to enhance innovation adoption in fashion businesses

The fashion businesses in Nsukka recognize several key strategies to enhance innovation adoption. These include access to low-interest funds, partnerships, and shared access to advanced technologies and expert resources. Despite agreeing on these strategies, the choice of how to implement them varies significantly across different fashion businesses in the region. Literature has studies corroborating the existence of different strategies.

Some fashion businesses may prioritize access to funding, while others might focus more on partnerships or technological integration. Regardless of these preferences, the core strategies – improving funding opportunities, facilitating access to technology, and providing training for skilled personnel – are widely seen as essential to fostering innovation and business growth. Sari & Asad (2018) and Zahra et al. (2021) have suggested similar strategies for overcoming barriers to innovation, particularly for small and medium-sized enterprises (SMEs) in developing economies. Wijaya et al. (2023) further emphasized the importance of collaboration between the local fashion industry and technology developers, such as software and website application creators. These partnerships can help fashion businesses implement user-friendly technologies, improve customer engagement, and make better use of marketing research. By doing so, businesses can enhance customer satisfaction, streamline operations, and increase their competitive advantage. Collaboration with tech experts and proper use of digital tools, as suggested by Wijaya et al. (2023), can significantly elevate the local industry’s ability to innovate and grow.

Impact of innovation adoption on fashion businesses

The findings of the study indicate that adopting innovation within fashion businesses in Nsukka positively influences business growth by enhancing customer satisfaction, increasing revenue, and reducing production time. This suggests that local businesses should have a clear understanding of what they expect from innovation: improved efficiency and customer experience. Moreover, the study shows that the impact of innovation on business growth is relatively uniform across different types of fashion businesses in Nsukka, highlighting a broad consensus on the benefits of innovation adoption.

The literature consistently supports the view that innovation is critical for business growth in the fashion industry. Ogbari et al. (n.d.) emphasize that innovation can drive market expansion, allowing businesses to reach new customer segments, whether by broadening existing markets or penetrating new geographic, demographic, or psychological territories. However, despite the evident creativity in Nigeria’s local fashion industry, small-scale businesses often struggle to fully capitalize on global market opportunities. This challenge stems from their limited ability to promote their skills and navigate the barriers related to scaling production and distribution. Other studies, such as Wang (2019), confirm that innovation helps businesses retain market share and maintain their customer base, while noting that innovation improves production speed, contributing to overall operational efficiency. These impacts are crucial for the growth and sustainability of fashion businesses in Nsukka, as they align with the global understanding of innovation’s role in the fashion industry.

CONCLUSION

The adoption of innovation is crucial for the growth of fashion businesses in Nsukka, improving customer satisfaction, revenue, and production efficiency. Despite the recognition of basic digital tools like social media and e-commerce, advanced technologies such as augmented reality and artificial intelligence remain underutilized. Barriers such as lack of funds, government support, and skilled labor hinder innovation adoption, which is a common challenge faced by SMEs in developing economies. Collaborative strategies, including partnerships, shared technologies, and increased funding, are essential for overcoming these obstacles and fostering innovation. Ultimately, innovation holds the potential to expand market reach, improve production processes, and ensure the long-term sustainability of fashion businesses in Nsukka; more support is needed to maximize these benefits.

RECOMMENDATIONS

Based on the findings, the following recommendations would suffice:

Government agencies, financial institutions, and private investors should provide low-interest loans and grants to support innovation adoption in fashion businesses, especially for small and medium-sized enterprises (SMEs) in Nsukka.
Local business associations and government bodies should offer training programs to familiarize fashion entrepreneurs with advanced technologies like augmented reality (AR), artificial intelligence (AI), and e-commerce platforms to enhance their operations.
Fashion businesses in Nsukka should form partnerships with technology experts, software developers, and other industry stakeholders to share resources and implement innovative tools more effectively.
Fashion businesses should leverage digital marketing and trade platforms to amplify their reach, enhance visibility, and tap into global markets, thereby addressing challenges in publicity and market access.

SUGGESTION FOR FURTHER STUDIES

The following are suggested for further studies:

Impact of integrating advanced technologies on efficiency and customer engagement among fashion businesses in Nsukka.
Comparative analysis of innovation adoption barriers among fashion businesses across various regions in Nigeria.
Exploring the effectiveness of partnerships between fashion businesses and technology developers in business growth.

A longitudinal study on the impact of innovation adoption on business growth, market expansion, and customer satisfaction among fashion businesses in Nsukka

Innovation and Business Growth Download

INNOVATION AND BUSINESS GROWTH IN THE FASHION INDUSTRY: A CASE STUDY OF NSUKKA, ENUGU STATE Read More »

PERCEPTION OF NEW GENERAL INSURANCE SERVICES IN NIGERIA BY SMALL AND MEDIUM ENTERPRISES (SMEs) IN ENUGU STATE

Advanced Leadership, Advanced Management, Financial Management, Managerial Economics, Operations Management, Organization Behaviour & Management, People Management / April 3, 2025

BY

NGOZI OBIOHA-NKEMDIRIM
DOCTOR OF STRATEGIC MANAGEMENT AND LEADERSHIP DEVELOPMENT PROGRAMME
LEARN TO LIVE BUSINESS SCHOOL, UK.

08037114608
ngshalom30@gmail.com

2024.

ABSTRACT:

SMEs are entrepreneurial initiatives and engines of economic development. They bear a lot of risks, which require cover under insurance companies. Initially, apathy was observed among the SMEs due to the poor performance of the insurance industries. However, the establishment of the National Insurance Commission (NAICOM) in 1997, ushered in a paradigm shift in the management of the insurance companies. This paper examined the perception of SMEs in Enugu state on the new general insurance services to determine the SMEs’ level of awareness and satisfaction with this paradigm shift. Two research questions and two hypotheses guided the study. A non-experimental ex-post facto research design was employed. A sample of 273 was drawn through a purposive, accidental, and snowballing sampling technique from 911 registered SMEs in the state. A questionnaire and interview schedule were used to collect data was analyzed using means and standard deviation. The results show that the SMEs are Not Aware of and Not Satisfied with the paradigm shift in the management of general insurance companies and are Not Willing to patronize insurance companies in Nigeria. No significant difference was found between the small and medium-scale enterprises. More sensitization of SMEs on the activities of NAICOM was recommended.

Keywords: Perception; Awareness; Satisfaction; Paradigm shift; Insurance; Small and Medium scale Enterprises (SMEs).

INTRODUCTION:

Background of the Problem:

Insurance is a financial and service product that helps protect individuals and businesses from potential losses or risks. It can also be described as a contract between two parties: the insurer (the insurance company) and the insured (the person or business being covered), where the insured pays a premium (a regular payment) to the insurer, who then promises to pay for specific losses or damages if they occur (https://www.naicom.nation.gov.ng). This is probably why Vaughan (2014) perceived it as an economic device whereby the individual substitutes a small certain cost (the premium) for a large uncertain financial loss (the contingency insured against).

Originally. insurance started with the practice of merchants in Italy in the 12th century. The history of insurance in Nigeria started as far back as the colonial era when the first Nigerian.

The insurance company, Royal Exchange Assurance Company, was established by the British, in 1921. Other local and foreign insurance companies followed. Later, the number of insurance companies licensed to operate in Nigeria rose to 67, as reported by NAICOM in Sunday Punch, 21 Aug 2023. Initially, the insurance sector was not managed by professionals and very little legal attention was paid to it in Nigeria, (Boma, 2019).

The traditional concept of mutual insurance found in many customary or communal practices “whereby members of a family or community collectively come to aid another member in times of disaster or misfortune” (Ajemunigbohun and Ayobami 2018), seemed to overcloud the initial practice of insurance in Nigeria. The pre-independence insurance market shows that before 1961, there was no statutory requirement for the registration of insurance businesses in Nigeria. The first legislation was the Insurance Companies Act of 1961 followed by others, but Insurance Decree 1997, established the supervisory body, National Insurance Commission (NAICOM) headed by the Commissioner for Insurance as applicable under the National Insurance Supervision Board (NISB), for more effective control and better supervision of the industry (Ajemunigbohun and Ayobami 2018). With the establishment of NAICOM as the supervisory body, professionals were introduced to the system of administration, and innovations were ushered into insurance management in Nigeria. This paradigm shift in administration changed the idea that insurance doesn’t work because previously when the insurance business was managed by agents who were not insurance professionals, claims were not paid at and when due to claimants but now the narrative is different as a result of the regulatory practices of the new Governing Board governing body, NAICOM. Claims were not paid to the claimant but currently, the narrative is different because insurance companies are now managed by Professionals with a regulatory board- NAICOM. Governing. The primary functions of NAICOM as indicated in … https://www.nairametrics.com.) include:

Licensing and regulating insurance companies
Setting standards for insurance products and services
Ensuring compliance with insurance laws and regulations
Protecting policyholders’ interests
Promoting the development of the insurance industry in Nigeria, with the following goals;
1. 1 Enhance the stability and soundness of the insurance industry
1. 2. Increase public confidence in insurance
1. 3. Encourage innovation and competition
1. 4. Protect consumers’ rights
1. 5. Contribute to Nigeria’s economic growth and development ()

Insurance service products in Nigeria cover the insured’s life, paying a benefit to beneficiaries upon death; Health Insurance which covers medical expenses and healthcare costs; Property Insurance includes damages or losses to property, such as homes or cars; Liability Insurance covers legal liability for damages or injuries caused to others and Business Insurance, which covers businesses against various risks, such as property damage or employee injuries (). The administrative procedure according to (https://www.portal.naicom.gov.ng) involves, Application for insurance coverage; Underwriting, which requires the insurer to assess the risk and determine the premium; and Policy issuance by the insurer, outlining the coverage and terms. Premium payments, whereby the insured pays premiums to maintain coverage; Claim filing, requires the insured to file a claim for a covered loss or damage and Claims processing, where the insure processes and settles the claim. Insurance marketers are expected to explain the application for insurance coverage, and the strategies and tactics used to promote and sell insurance products to potential customers very well during the advocacy. Some key aspects of insurance marketing according to (https://www.naicom.nation.gov.ng) include

Target Market Identification: Understanding the demographics, needs, and preferences of potential customers.
Product Positioning: Highlighting the unique benefits and features of insurance products
Branding: Building a strong brand identity to establish trust and credibility.
Digital Marketing involves leveraging online channels such as social media, email, and search engine optimization (SEO).
Content Marketing: Creating informative and engaging content to educate and attract customers
Lead Generation: Generating leads through various channels, such as referrals, online forms, and events.
Sales Strategies: Developing effective sales techniques to convert leads into customers.
Customer Retention: Building strong relationships to retain existing customers and encourage loyalty.
Data-Driven Marketing: Using data analytics to inform marketing decisions and measure campaign effectiveness.
Regulatory Compliance: Ensuring marketing efforts comply with industry regulations and laws.

Small and medium-sized enterprises are usually perceived as vehicles for economic development, especially in developing countries like Nigeria, Abotsi et al., 2014; Ahmed, Abdul- man, 2016; Chatterjee, Wehrhahn, 2017) and closing the gap between the downtrodden and the upper class. SMEs are also described as being labor intensive, the main source of employment, economic advancement, revenue-generating source, and technology innovation. (Ikeotuonye 2019). Studies show that they contribute to over 95% of enterprises, worldwide and about 60% of the private sector employment (Ayyagari, Demirguc-Kunt, Maksimovic 2011) and so with These indicate that their contribution to Nigeria’s economy cannot be overemphasized and should not be left out of the recent innovation in the insurance sector in Nigeria. This governs the concerns of this study. There are many studies on insurance and its performance as well as customers’ perceptions and acceptance (Boma, 2019); most centered on developed countries and in Africa. The only one available to the researcher was carried out in the cosmopolitan city of Lagos. For instance, Diara, Norlida, and Shahrul’s (2023) study is on risk transfer, and Chanti’s (2023) study is on the contribution of insurance companies to the growth of SMEs. Willieth (2020) surveyed insurance demand for SMEs in India, while Unachukwu, Oyewole, Olabode, and Aderonke (2020) focused on SME development amid COVID-19 in Lagos State, Nigeria but not on insurance. Also, Ekerete, Olawoye, Gam, and Ikon (2018) focused on the insurance industry in Nigeria but not on SMEs.

Nevertheless, only (Ajemunigbohun and Ayobami 2018) investigated insurance awareness and acceptance among SMEs in Lagos. Very closely related to this paper is that of Sagagi & Ekperi & Nwadike (2019) which evaluates awareness level and public perception of the image of insurance companies in Enugu state.

However, the study although in Enugu state focused on the public awareness and perception of leaving this study as the first to dwell on the awareness and perceptionof the new general insurance services in Nigeria by SMEs in Enugu state. This is the lacuna this study filled.

The study scope covers all registered SMEs operating in Enugu state before and after the establishment of NAICOM. SMEs with less than five years of existence will be delimited as they may not be conversant with the paradigm shift in the administration. The study content scope will be limited to awareness of and perception/ satisfaction with NAICOM administration, services, and products.

Statement of the problem:

Enugu state is part of Igboland where the inhabitants are known for their business acumen. However, Enugu is not a cosmopolitan city, and most residents are not as well off as their counterparts in bigger cities. Lagos, Abuja, kano, or Port Harcourt. Consequently, they are very mindful of gains and losses in their business and so are likely to tread cautiously with any policy that may not guarantee profit to their enterprises. Understandably, there was an initial apathy among SMEs in Enugu due to low outputs and poor performance of the insurance industries especially the issue of no settlement of claims, due to one flimsy reason or the other. The Insurance Information Institute (2005) noted that most small business owners are at risk of disaster and do not have a disaster recovery plan. As observed, previously, insurance in Nigeria has been criticized for a lack of trust, low popularity and patronage (Nwankwo and Ajemunigbohun, 2013), low awareness and poor image, and low demand and patronage of insurance products and services. (Sagagi, Marafa & Ekperi, Paul & Nwadike, Stanley 2019) which might have scared the SMEs from patronizing insurance industries. However, due to the innovations, introduced by the new insurance administration in Nigeria, spanning over a decade now, it will be interesting to ascertain if the Small and Medium Enterprises (SMEs) patronage of the insurance sector in Enugu has improved. Could it be said that the introduction of new service products by NAICOM is the elixir that will wake up the SMEs in Enugu state, to benefit from this paradigm shift in management of the Nigerian insurance sector? This is the kernel of this study that investigated the awareness and perception of the new general insurance services in Nigeria: Case of Small and Medium Enterprises (SMEs) in Enugu. The purpose of this study is therefore to examine the level of awareness and perceptions of the SMEs in Enugu state Nigeria on the paradigm shift in the management of general insurance companies in Nigeria. Precisely, the objectives of this study are to:

To find out the level of awareness of SMEs in Enugu state on the paradigm shift in the management of general insurance companies in Nigeria.

To determine the level of satisfaction of the SMEs in Enugu with the paradigm shift in the management of general insurance companies in Nigeria.

Research Questions: The following research questions guided this study.

What is the level of awareness of SMEs in Enugu state on the paradigm shift in the management of general insurance companies in Nigeria?

What is the level of satisfaction of the SMEs in Enugu with the paradigm shift in the management of general insurance companies in Nigeria?

Hypotheses: These hypotheses were tested at a 0.05 level of probability to guide the study.

HO1: There is no significant difference in the level of awareness of Small and medium-scale Enterprises in Enugu state regarding the paradigm shift in the management of general insurance companies in Nigeria.

HO2: There is no significant difference in the level of satisfaction of the Small and Medium scale Enterprises in Enugu state, about the paradigm shift in the management of general insurance companies.

LITERATURE REVIEW:

Sagagi & Ekperi & Nwadike, (2019), evaluated the awareness level of public perception of insurance companies in Enugu State. Like this study, they employed a structured questionnaire to elicit information from 400 respondents. Percentage means scores, and the Pearson Chi-Square test was used in data analysis. Findings show low awareness by the public of insurance enterprise in Enugu State, even though the city is viewed as an enlightened city. The image of insurance companies in Enugu State was also found to be poor and the demand was low, due to the poor public image of the insurance companies. The study thus recommends among others that insurance companies should engage in trade fairs, workshops, radio/TV jingles, etc. as this will serve as effective communication strategies to enlighten the public on their products and services.

Ime, (2018) studied ‘Empirical Appraisal of Nigerian Insurance Sector and the Performance of Nigerian Stock Exchange, to appraise the Nigerian insurance sector and the performance of the Nigerian stock exchange. Like the current study, he adopted an ex-post facto research design and historical data, the study covered the period 1981 to 2014 and covered all the quoted insurance firms on the Nigerian Stock Exchange operating in Nigeria. The findings reveal there is a significant relationship between insurance companies’ investments and the all-share index of the Nigerian Stock Exchange, also there is no positive effect of stock/securities prices of insurance companies on the market capitalization of the stock market and the Insurance sector growth has a significant influence on the performance of Nigerian Stock Exchange.

Li & Li (2020), analyzed the relationship between inflation, increase in investment in fixed assets, monetary policy, financial openness, national savings, macro-economic climate index, deposit rate, and the development of the insurance industry in China. Though this study was carried out in China, the analysis, unlike the current study integrated a multiple linear regression, stepwise regression, and robustness analysis for the empirical analysis. However, the result indicated that (a) the national savings and macro-economic climate index are the major factors that influence the development of the insurance industry in China and; (b) improve the development of the insurance industry, both the economic growth and people’s income should continue to advance; and (c) financial openness should be paid more attention to, which is insufficient, and there is lack of competitive vitality in the whole insurance market, underscores to need for the insurance companies in Nigeria to carry along the SMEs in their services and development for economic growth of the people of Enugu state.

Ajemunigbohun & Ayobami (2018), investigated ‘Insurance awareness and acceptance: Empirical evidence among SMEs in the Lagos State. The relationship between this study and the current one lies in the fact that both studied SMEs and employed the descriptive approach and survey design, stage cluster sampling technique, questionnaire, and interview schedule on awareness and its acceptability among small business and medium-sized operators in the Lagos and Enugu metropolis respectively. The results of this study assume that insurance products have not gained high popularity among small business and medium-sized operators in the Lagos metropolis. They have also shown a low but slightly positive relationship between insurance awareness and its acceptance among small business owners in the Lagos metropolis. Our formulated hypotheses have been supported. This study’s recommendation that greater attention should be placed on SMEs and their engagement in the design of insurance products related to their activities to allow for a sense of ownership, effective risk management communication, and proper risk financing techniques, throws a challenge on the present study conducted six years after this one, to find out if the situation has changed in Enugu State.

Although these studies are in one way or the other related to the current study, no study known to the researcher investigated the Perception of New General Insurance Services in Nigeria by Small and Medium Enterprises (SMEs) in Enugu state. This study is the first of its kind to explore the perception of the paradigm shift in insurance services in Nigeria by Small and Medium Enterprises (SMEs). This is the lacuna this study filled.

RESEARCH METHODOLOGY:

Design of the Study: This study adopted a descriptive non-experimental research design carried out ex-post facto or retrospectively, ‘looking backward. This implies ‘after the fact’ because according to (Nwankwo and Emunemu 2015:147),

Like all designs, non-experimental research design does not attempt to control or manipulate any variable. It is focused on one single event (i.e., a single case design) and the researcher’s interest or objective is to investigate and report what has happened.

This design is deemed appropriate for this study as it investigated what had already occurred with the SMEs. Hdv’s study dealt with those SMEs that existed before and after the establishment of NAICOM and so must have experienced the insurance companies’ services and products before and after the paradigm shift in administration.

Area of the Study: The area of this study is the state of Enugu. Enugu state is in the South-East of Nigeria with three senatorial zones, Enugu East, Enugu West, and Enugu North. The zone has a total of 911 SMEs (NBS 2020), Most of the residents in the zone are public servants. The people are a core Igbo-speaking race known for their business acumen. Like other parts of Nigeria NAICOM supervises the insurance companies in the state and the new changes also are being implemented in Enugu state.

The study’s population includes all the 911 registered SMEs in Enugu state (Source: NBS 2020).

Sample and Sampling Techniques: The study adopted Krejci & Morgan 1970) and Chiaha (2023) determinants of a sample size from a given population. Using a purposive, accidental, and snowballing sampling technique 30% (273) of the SMEs were used for this study. Due to the smallness of the sample, the entire state was used. Purposively, SMEs that existed before and after the establishment of NAICOM were sampled. For snowballing, available SMEs were requested to supply the names and phone numbers of their colleagues which the researcher and her assistants used to contact them. In the end, 265 SMEs were used for the study.

Instruments for Data Collection: Two instruments were used for data collection including a questionnaire titled ‘New General Insurance Services Awareness and Perception-SMEs Questionnaire (NGISAP–SMEsQ) and an interview schedule titled ‘‘New General Insurance Service Awareness and Perception – SMEs Interview Schedule (NGISAP–SMEsQ).

The NGISAP–SMEsQ is structured on a 4-point Likert-type rating scale with options of; VA- Very much Aware; NA- Not aware; UA- Unaware; VUA- Very much Aware

Or SA- Strongly Disagree; A- Agree; N- Neutral; D-Disagree; SD – Strongly Disagree and VS- Very Satisfied; S- Satisfied; NS- Not Satisfied; VUS- Very Unsatisfied where applicable; and weighted 4, 3, 2 and 1 respectively. It has two sections, A and B. Section A, with 2 items was designed to collect respondents’ demographics, while Section B with three clusters and 23 items aimed at collecting data for the research questions.

Validation of the Instrument: Three experts were requested to ascertain the appropriateness and clarity of the instruments’ items to determine whether they measured what they purported to measure. Their comments, suggestions, and observations were considered in the production of the final draft of the instruments (App II and III).

Reliability of the Instrument: The instruments were trial tested through a pilot study, on 10 respondents (SMEs) from Ebonyi state, which is outside the study area. The internal consistency of the instrument was computed using the Cronbach Alpha method which yielded 0.79 for the entire instruments. The instruments were therefore considered reliable enough for the study.

Method of Data Collection: The study adopted a direct contact administration strategy in which the researcher with her well-trained research assistants directly collected the data from the respondents. The researcher personally interviewed 25 Chief Executive Officers (CEOs) of the SMEs in their offices. The data administration lasted for two weeks with a high return rate of 78.87%

Method of Data Analysis: The data generated for the study were analyzed using percentages, means, and Standard Deviation (SD) for data collected from the questionnaire. Decisions were arrived at using the criterion mean score of 2.50. This implies that Means below 2.50 were taken indicate that the corresponding items were NOT Accepted by the SMEs, while Means of 2.50 and above were taken to indicate that the corresponding items were Accepted for the same reason.

Inference

The results from the SMEs Interview Schedule (NGISAP–SMEsQ were qualitatively analyzed. For the hypotheses testing, the Independent Sample Test of Levene’s Test for Equality of Variances was adopted in the t-test for Equality of Means at a 95% level of probability or 0.05 level of significance. The significant level was determined with the P- P-table value about the. This implies that when the P-value is below 0.05 level of significance, when t- calculated is greater than t- table (1.96) it implies a significant difference between the Means tested, thus the Null Hypotheses were Not Accepted. On the other hand, when the P-value is higher than 0.05 or the t- calculated is greater than the t-table (1.96), it implies No Significant D

between the means tested. Therefore, the Null Hypotheses was Accepted.

RESULTS:

The findings of the study are presented in four tables with the research questions and hypotheses based on the research questions and null hypotheses that guided the study. The data analyses were based on 209 copies of the questionnaire collected after completion, out 265 copies distributed. This represents the return rate.

Table 1:

Mean Ratings and Standard Deviations of Respondents on the Level of Awareness of SMEs in Enugu State on the Paradigm Shift in the Management of General Insurance Companies in Nigeria.

S/N	Level of awareness of the new changes in Small Businesses Include:	Small Business N = 113			Medium Business N = 96				Overall N = 209
S/N		X	SD	Dec.		X	SD	X	Dec.	X	Dec.
1.	Insurance companies are now managed by professional	2.34	1.25	NA		2.64	1.21	NA	2.47	1.24	NA
2.	The new regulatory board Governing body the Nigerian Insurance Commission- NAICOM	2.37	1.23	NA		2.40	1.31	NA	2.38	1.27	A
3.	The primary functions of NAICOM include Protecting policyholders’ interests	2.50	1.39	A		2.43	1.30	NA	2.46	1.34	NA
4.	The primary functions of NAICOM also include	2.24	1.24	NA		2.55	1.28	A	2.38	1.27	NA
5.	Insurance companies have services and products that can help protect losses in your businesses 2.42 1.29 NA	2.63	1.22	NA		2.63 1.22	1.22	A	2.51	1.26	A
6.	Are you aware that claims are now easily paid by Insurance companies.	2.49	1.23	NA		2.70	1.22	A	2.58	1.23	A
Are you aware of the following insurance service products in Nigeria;
7.	Life insurance-Paying benefits to death	2.58	1.20	A		2.46	1.21	NA	2.53	1.21	A
8.	Health Insurance- which covers medical healthcare costs;	2.52	1.30	A		2.40	1.29	NA	2.46	1.29	NA
9.	Property Insurance, which includes losses to property, such as homes or cars;	2.39	1.36	NA		2.33	1.25	NA	2.36	1.31	NA
10.	Liability Insurance that covers legal damages or injuries caused to others	2.58	1.20	A		2.48	1.34	NA	2.53	1.26	A
11.	Business Insurance, which covers businesses various risks, such as property damage or employee injuries	2.44	1.28	NA		2.39	1.28	NA	2.42	1.28	NA
Cluster Mean/SD 2.44 1.27 NA 2.49 1.26 NA 2.46 1.27 NA

NB: SD= Standard Deviation, A= Aware, NA= Not Aware, Dec = Decision

Research Question One: What is the level of awareness of SMEs in Enugu state on the paradigm shift in the management of general insurance companies in Nigeria?

Table 1 shows that the mean scores of the small businesses on items number 3, 7, 8, and 10 are 2.50, 2.58, 2.52, and 2.58. This depicts that the small businesses are Aware of the indicated new changes in the management of insurance companies in Nigeria, while items number 1, 2, 4, 5, 6, 9, and 11 with mean scores below 2.50 denotes that the same respondents are Not Aware of listed new changes in the management of insurance companies in Nigeria. Hence, the study also indicated that the mean scores of 2.64, 2.55, 2.63, and 2.70 are obtained for the medium businesses on items number 1, 4, 5, and 6, indicating that the medium enterprises are Aware of concerned new changes in the management of insurance companies in Nigeria, while items number 2, 3, 7, 8, 9, 10 and 11, with mean score range of 2.33 to 2.48 denotes Not Aware responses by the same medium businesses. However, the overall mean scores ranged from 2.51 to 2.53 for Aware and

2.38 to 2.47 for Not Aware responses respectively. Thus, the cluster mean score of 2.46 obtained for all the items under study depicts that the respondents (both small and medium businesses) are Not Aware of the new changes in the management of insurance companies in Nigeria while the cluster standard deviation of 1.27 denotes homogeneity in the opinions of the respondents.

Hypothesis One: There is no significant difference in the level of awareness of the small and medium scale Enterprises in Enugu state with regard to the paradigm shift in the management of general insurance companies in Nigeria.

Table 2 shows that the t-value (t-calculated) of -0.654 is obtained at a 0.05 significance level and 207 Degrees of Freedom with a significant value of 0.514. Thus, since the significance value (0.514) is more than the level of significance (0.05) set for the study, the null hypothesis is therefore not statistically significant, and hence, the hypothesis is Accepted. This implies that there is no significant difference in the level of awareness of the small and medium scale Enterprises in Enugu state about the paradigm shift in the management of general insurance companies in Nigeria.

Table 2:

Group	N	Mean	SD	t-Value	Df	t-Cal	Sig. (2 tailed)	Dec
Small Business Owners	113	2.44	0.57	1.96	207		0.67	Accept HO
Medium Business Owners	96	2.46	0.48

t-test Statistics on the Significant Difference in the Level of Awareness of the Small and Medium Scale Enterprises in Enugu State with regards to the Paradigm shift in the Management General Insurance Companies in Nigeria.

NB: SD= Standard Deviation, Df= Degree of Freedom

Research Question Two: What is the level of satisfaction of the SMEs in Enugu with the paradigm shift in the management of general insurance companies in Nigeria?

Table 3 shows that the mean scores of the small businesses on items number 12, 16, and 19 are 2.69, 2.58, and 2.61. This depicts that the small businesses are Satisfied with insurance companies in terms of the listed items while items number 13, 14, 15, 17, and 18 with mean scores ranging from 2.34 to 2. 46 (below the 2.50 criterion mean), indicate that the same respondents are Not Satisfied with insurance companies in terms of the concerned items. Thus, the study also shows that the mean scores of 2.56, 2.57, 2.64, and 2.60 are obtained for the medium businesses on items number 12, 13, 16, and 18, indicating that the medium business owners are Satisfied with insurance companies concerning the listed items while items number 14, 15, 17 and 19 with a mean score range of

2.24 to 2.48 denotes that medium business enterprises are Not Satisfied with the paradigm shift in the management of general insurance companies in Nigeria.

The table also shows the level of willingness of the SMEs to patronize insurance companies in Nigeria. The mean score range of 1.86 to 2.46 for both SMEs indicates that they are Not Willing to patronize insurance companies in Nigeria. The cluster mean score of 2.43 and 2.41 respectively, obtained for the SMEs, show that they are Not Satisfied. Also, an overall cluster mean score of 2.42 obtained for all the items denotes that the SMEs are not satisfied with the paradigm shift in the management of general insurance companies in Nigeria. The cluster standard deviation of 1.27 depicts that the disparity in the opinions of the respondents is slim.

Table 3:

Level of satisfaction of the SMEs in Enugu with the Paradigm shift in the management of general insurance companies in Nigeria

S/N	How satisfied are you with insurance companies in terms of:	Small Business N = 113			Medium Business N = 96				Overall N = 209
S/N		X	SD	Dec.		X	SD	X	Dec.	X	Dec.
12	Understanding of the demographics that is needs, and preferences of SMEs and potential customers	2.69	1.19	S		2.56	1.28	S	2.63	1.23	S
13.	Unique benefits and features of imsuranceproducts	2.34	1.29	NS		2.57	1.24	S	2.44	1.27	NS
14.	Efforts to build a strong brand identity to establish trust and credibility of SMEs and customers	2.34	1.27	NS		2.39	1.34	NS	2.36	1.30	NS
15.	Insurance companies use of online channels, such as social media, email and search engine, in communicating with the SMEs and customers	2.46	1.11	NS		2.48	1.23	NS	2.47	1.16	NS
16.	Insurance companies creation of informative and engaging contents to educate and attract customers	2.58	1.27	S		2.64	1.27	S	2.61	1.27	S
17	Insurance companies’ sales strategies for developing effective sales technique to convert leads into customers	2.39	1.28	NS		2.24	1.38	NS	2.32	1.33	NS
18.	Insurance companies’ efforts in building strong relationships to retain existing customers and encourage loyalty	2.43	1.22	NS		2.60	1.27	S	2.51	1.24	NS
19.	Insurance companies’ efforts to ensure that marketing efforts comply with industry regulations and laws	2.61	1.22	S		2.26	1.36	NS	2.45	1.29	NS
Your willingness to patronize insurance companies in Nigeria:
20.	I am willing to Patronise insurance companises in Nigeria	2.38	1.23	NW		2.46	1.26	NW	2.24	1.24	NW
21.	I have already insured my business	2.38	1.26	NW		2.44	1.32	NW	2.41	1.29	NW
22.	My business had previously benefitted from the services and products of insurance companies in Nigeria	2.45	1.30	NW		2.41	1.23	NW	2.43	1.26	NW
23.	I am willing to encourage my colleagues in SMEs to patronize insurance companies in Nigeria.	2.07	1.31	NW		1.86	1.32	NW	1.98	1.31	NW

Cluster Mean/SD 2.44 1.27 NA 2.49 1.26 NA 2.46 1.27 NA

NB: SD= Standard Deviation, S= Satisfied, NS= Not Satisfied. D= Disagree; Dec = Decision; NW = Not Willing

Hypothesis Two: There is no significant difference in the level of satisfaction of the small and medium scale Enterprises in Enugu state, with regard to the paradigm shift in the management of general insurance companies.

The data presented in Table 4 shows that the t-value of 0.283 is obtained at a 0.05 significance level and 207 Degrees of freedom with a significant value of 0.777. Hence, since the significance value is more than the level of significance set for the study, the null hypothesis is therefore statistically insignificant and, not rejected for the said items. There is, therefore, no significant difference in the level of satisfaction of the small and medium-scale Enterprises in Enugu state, concerning the paradigm shift in the management of general insurance companies. The hypothesis is upheld.

Table 4:

Group	N	Mean	SD	t-value	Df	t-Cal	Sig. (2 tailed)	Dec
Small Business Owners	113	2.43	0.45	0.283	207		0.777	Accept HO
Medium Business Owners	96	2.41	0.47

NB: SD= Standard Deviation, Df= Degree of Freedom

Results from the SMEs Interview Schedule (NGISAP–SMEsQ :

Research Question 1: What is the level of awareness of SMEs in Enugu state on the paradigm shift in the management of general insurance companies?The CEOs of the SMEs interviewed indicated that they were not aware of the paradigm shift in the management of new general insurance companies in Nigeria. Most of them showed that they were not interested in their services as they did not benefit from the insurance companies that they wanted. They complained of delays and bottlenecks which make payment difficult and mostly impossible when it comes to claims. However, many confessed that they do not attend the NAICOM conferences and Briefs as they ‘do not have much time to waste due to their businesses’.

Research Question 2: What is the level of satisfaction of the SMEs in Enugu with the paradigm shift in the management of general insurance companies?

On the issue of satisfaction with the paradigm shift in the management of general insurance companies, the CEOs were very emphatic that they were not satisfied with the services in the insurance companies. Their lack of satisfaction is because the insurance companies cannot be trusted. They also indicate the Unwillingness to patronize the insurance companies, rather they would prefer to support their thrift system managed by the SMEs, even though they accept that they are aware that they can benefit more insurance companies.

Summary of Findings:

Research Question 1: What is the level of awareness of SMEs in Enugu state on the paradigm shift in the management of general insurance companies in Nigeria?

Finding 1: The SMEs in Enugu state are Not Aware of the paradigm shift in the management of general insurance companies in Nigeria.

Hypotheses 1: There is no significant difference in the level of awareness of the Small and Medium scale Enterprises in Enugu state with regards to the paradigm shift in the management of general insurance companies in Nigeria.

Finding 2: There is no significant difference in the level of awareness of the Small and Medium scale Enterprises in Enugu state with regard to the paradigm shift in the management of general insurance companies in Nigeria.

Research Question 2: What is the level of satisfaction of the SMEs in Enugu with the paradigm shift in the management of general insurance companies in Nigeria?

Finding 3: The SMEs in Enugu state are Not Satisfied with the paradigm shift in the management of general insurance companies in Nigeria and are Not Willing to patronize insurance companies in Nigeria.

Hypotheses 2: There is no significant difference in the level of satisfaction of the Small and Medium scale Enterprises in Enugu state, with regards to the paradigm shift in the management of general insurance companies.Finding 4: There is no significant difference in the level of satisfaction of the Small and Medium scale Enterprises in Enugu state, with regard to the paradigm shift in the management of general insurance companies.

DISCUSSIONS: The findings of this study are discussed in line with the specific objectives and hypotheses that guided the study.

SMES Level of Awareness of the Paradigm Shift in the Management of General Insurance Companies in Nigeria:

The findings show that the SMEs in Enugu state are Not Aware of the paradigm shift in the management of general insurance companies in Nigeria. This is quite disturbing as the SMEs are the engine for economic development in the state. There is no significant difference in the level of awareness and satisfaction of the Small and Medium scale Enterprises in Enugu state, concerning the paradigm shift in the management of general insurance companies indicating that both small and medium-scale enterprises have the same opinion. Not being aware of the paradigm shift in the management of general insurance companies in Nigeria implies that they may not take advantage of the services of the insurance companies to enable them to protect their businesses. The response of the CEOs from the interview shows that the SMEs do not even attend the NAICOM conferences and Briefs as they ‘do not have much time’.

It is therefore not surprising that they are unaware of the paradigm shift in the new management of general insurance companies. Their biases are due to the previous management’s compromise with the payment of claims which have overclouded their reasonings.

This finding supports Ajemunigbohun & Ayobami (2018), that insurance products have not gained high popularity among small businesses and medium-sized operators in the Lagos metropolis. It is surprising to find that even after five years of the findings of Sagagi, Ekperi & Nwadike, (2019), indicating low awareness by the public of insurance enterprise in Enugu State, the findings of this study show that nothing changed, as the SMEs in Enugu state are still unaware of the new paradigm shift. This implies that the SMEs are unaware of the improvements and innovations introduced by NIACOM. Like Sagagi, Ekperi & Nwadike, (2019), who found low demand and patronage of insurance products and services in the Enugu state, this study also found that the SMEs in Enugu state are not satisfied and therefore unwilling to patronize the insurance companies in Nigeria. Probably NIACOM is emphasizing institutions, which have less and minimal risks, with little or no advocacy for the SMEs that have higher risks. Probably this is why the SMEs formed their local insurance, which they prefer to patronize even when the local insurance does not have as many benefits as that of NAICOM.

Conclusion: The study concludes that SMEs in Enugu state are not aware of the paradigm shift in the new management of the general insurance companies in Nigeria and are not satisfied nor willing to patronize them.

Implications of the study:

SMEs are very beneficial to the economic growth of Nigeria and if they are not protected from risks, many will fold up and it will affect the country’s economy drastically, so NAICOM must ensure that they are properly educated to benefit from the risk management of the insurance companies.

NAICOM should note that as long as the SMEs are not aware of the paradigm shift in the new management of the general insurance companies in Nigeria, they may not be satisfied nor willing to patronize them, so making the SMEs aware of the paradigm shift in the new management of the general insurance companies is very paramount in getting their satisfaction and patronage.

Contribution to Knowledge: This study has made significant contributions to knowledge.

The SMEs are not properly insured in Enugu state and therefore the study shows that many of the SMEs may be at risk of folding up.
It has shown the need for advocacy to enable the SMEs to benefit from the products and services of NAICOM.
It has contributed to the literature and will be helpful to researchers carrying out similar studies in this area.

Suggestions for Further Studies: Studies should be carried out to find the reasons for the continued low patronage of insurance companies in Nigeria in Enugu and other states in Nigeria. And how to improve advocacy for the public, especially the SMEs.

RECOMMENDATIONS:

NAICOM must endeavor to sensitize SMEs in Enugu to become aware of their services as well as the paradigm shift in the new management of the general insurance companies in Nigeria. This will enable the SMEs to patronize them.

The insurance companies in Nigeria should ensure that they settle the claims for their customers promptly by avoiding bottlenecks and delays.

NIACOM should pay more attention to small and medium business owners, and educate them on the paradigm shift introduced by the new management and other products and activities for the insurance companies. This is because of the importance of the SMEs in promoting economic development in Nigeria.

NIACOM should understudy the local insurance of the SMEs to find out why they prefer to patronize it and learn from it how to attract the SMEs.

Perception of new general Insurance Download

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HOW THE FOURTH INDUSTRIAL REVOLUTION IMPACTS THE FUTURE OF WORK

Financial Management, Managerial Economics, People Management / March 29, 2023

Author: Kingsley Ahiwe

The Fourth Industrial Revolution’s continued impact on the business world is being felt in various sectors of the economy. The labour market is experiencing one of the most significant and immediate effects. Brain drain has become a sensitive issue in both growing and advanced economies while public debate rages about the future of work and whether there will be enough jobs to employ everyone gainfully. As the new paradigm evolves, this will require revamping or strengthening the business strategy and corporate culture, learning and development, talent management, and existing organisational structures.
Explore the insights to see the key things companies can do to stay ahead of the curve and prepare for the future of work. The word “Industrial Revolution” has become a lexicon in the business world and global economy. It denotes a period of transition in how people live and work. The world witnessed the First Industrial Revolution in the late 19th century and early 20th century. Primarily, water and steam power using coal was the technology employed to mechanise production, power industries, and build rail infrastructure. The Second Industrial Revolution paved the way for globalisation, mass production, and automated production using electronics, and by the early 1990s, the new convergence of communication and energy had infiltrated society. Finally, the proliferation of information technology, electronics and the resurgence of renewable energies resulted in a robust new infrastructure for the Third Industrial Revolution. The world is witnessing yet another technological revolution, a shift, a surreal transformation! “The Fourth Industrial Revolution.” The Fourth Industrial Revolution represents a new phase in human history, made possible by extraordinary technological advancements comparable to the first, second, and third industrial revolutions. It combines digital, biological, and physical systems and will usher in a new era of human-machine interaction. According to the founder and executive chairman of the World Economic Forum (WEF), Klaus Schwab, it marks a fundamental shift in how we work, interact, and live. Due to its disruptive spread, exponential evolution, and speed of transformation without precedent in human history, this transformation cannot be viewed as a continuation of the Third Industrial Revolution.

AUTOMATION, DIGITAL PLATFORMS, AND OTHER INNOVATIONS ARE TRANSFORMING THE FUNDAMENTAL NATURE OF WORK IN THE FOURTH INDUSTRIAL REVOLUTION.

The Fourth Industrial Revolution’s continued impact on the business world is being felt in various sectors of the economy. The labour market is experiencing one of the most significant and immediate effects. Brain drain has become a sensitive issue in both growing and advanced economies while public debate rages about the future of work and whether there will be enough jobs to employ everyone gainfully. As automation replaces labour across diverse economic sectors, inequality in the labour market has increased. Workers with high skill levels now demand high pay, while those with low skill levels earn low salaries. This continues to create net job losses, high demand for high-skill jobs, and a rise in the growth and the need for safe and rewarding employment. Conversely, the business world can create value by using new technology and leveraging its advantages. This new form of leveraging technology has provided new value streams for leading firms worldwide, offering opportunities to transform the best and the most competitive industries. In sum, this leads to a fourth industrial value chain. INDIVIDUALS WILL BE AFFECTED IN DIFFERENT WAYS. The Fourth Industrial revolution is not just about the changing nature of work but also how it will impact people’s lives worldwide. Like the previous revolutions, this has the potential to raise global income levels and enhance the standard of living for people worldwide. We are witnessing a paradigm shift in how people spend their time. New technologies have made us more productive and accessible. As a result, people are collaborating faster and in different ways than before. Additionally, there has been massive growth in remote working, freelancing, and the gig economy. To survive in the shifting market, every professional—even those thought to be beyond transformation—must reinvent themselves. As the new paradigm evolves, it is counterproductive to demand that all your employees, including yourself, always possess the same skills. A NEW APPROACH TO STRATEGY, TALENT MANAGEMENT, AND LEARNING IS VITAL TO THRIVING IN THE FOURTH INDUSTRIAL REVOLUTION. As a result of this perfect storm of technologies, the Fourth Industrial Revolution is paving the way for transformative changes in the way we live and radically disrupting almost every business sector. The emergence of fresh global markets and business models leads to talent wars, demand for specialised skills, and evolving customer needs. Consequently, this will require revamping or strengthening the business strategy and corporate culture, learning and development, talent management, and existing organisational structures.

There are a few key things companies can do to stay ahead of the curve and prepare for the future of work.

 Invest in technology: Not only will this help you automate manual processes and reduce costs, but it will also enhance business agility.

 Rethink hiring strategy & talent management: Assess your current talent pool and make the necessary changes to improve hiring rates and increase retention. You can accomplish this by developing a strong employer brand – that drives attraction. Then go beyond matching skills and experience and evaluating the potential employee’s personality, culture, and values – which are ingredients for engagement. Finally, and most importantly, setting realistic expectations about job effort, deliverables, and potential career advancement promotes retention.

 Expand your global footprint: By utilising the global talent ecosystem and partnerships, you can benefit from the changing workplace and capitalise on the sizable markets and opportunities it offers.

 Create a culture of experimentation: Don’t be afraid to try new things. Whether it’s a new hiring method or a way to onboard your employees, you must be open to change.

 Stay informed: Stay updated with industry trends and be aware of how technological changes impact the work landscape.

In conclusion, as the Fourth Industrial Revolution reshapes the future of work, individuals and businesses must prepare their people for that new world. This revolution will strengthen economies and be critical to individual and organisational future success. Exceptional customer experience, product/service innovation, talent, and culture will lay the foundations for growth and prosperity and form the epicentre of businesses. Understanding these shifts can help policymakers, business leaders, and workers move forward. In keeping up with this change, business leaders must comprehend the changing environment, question the presumptions of their operational teams, and innovate tirelessly and continuously. In addition, emphasis should be laid on training and capacity development, hiring right, building a culture of trust, talent management, and promoting employee engagement. If you need assistance in aligning your business with the new normal, building agility, or re-evaluating your talent or learning strategy for success in this rapidly changing business environment, please contact us for insights and expert advice through info@llbsuk.com

Industry-4.0-How-the-Fourth-Industrial-Revolution-Impacts-the-Future-of-Work Download

HOW THE FOURTH INDUSTRIAL REVOLUTION IMPACTS THE FUTURE OF WORK Read More »

INNOVATION AND BUSINESS GROWTH IN THE FASHION INDUSTRY: A CASE STUDY OF NSUKKA, ENUGU STATE

PERCEPTION OF NEW GENERAL INSURANCE SERVICES IN NIGERIA BY SMALL AND MEDIUM ENTERPRISES (SMEs) IN ENUGU STATE

HOW THE FOURTH INDUSTRIAL REVOLUTION IMPACTS THE FUTURE OF WORK

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