How to Conduct Research on Small and Micro

Businesses

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Author: Adebowale Owoseni, Adedamola Tolani

Pub. Date: 2023
Product: Sage Business Cases
DOI: https://doi.org/10.4135/9781529618785
Keywords: small business, data collection, social media, interviews, digital technology, case studies, trust,
research methods, Nigeria, language
Disciplines: Mixed Methods, Research Methods for Business & Management, Business & Management
Access Date: January 27, 2024
Publishing Company: SAGE Publications: SAGE Business Cases Originals
City: London
Online ISBN: 9781529618785

© 2023 SAGE Publications: SAGE Business Cases Originals All Rights Reserved.
Sage Sage Business Cases
© Adebowale Owosen and Adedamola Tolani 2023

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Abstract

This case is based on the authors’ more than 10 years of research into small and micro businesses
(SMBs). It was motivated by a recent study of SMBs in Nigeria during the COVID-19 pandemic and
the difficulties we faced conducting the research. The aim of this case is to raise awareness of the
uniqueness of SMBs and create a narrative of how we reliably investigated SMBs in Nigeria despite
the challenges. We assert that this narrative is critical and should be given a wider coverage because
SMBs are key to the economic development of many countries around the world. More than 400 mil-
lion SMBs exist worldwide, accounting for more than 90% of global businesses and 98% of global eco-
nomic activities. However, there are few teaching case studies that speak to students about how these
important entities (SMBs) can be researched, particularly from the standpoint of field data collection.
The case presents a research proposal within the specific context of conducting research within the
SMB community in Nigeria, in which the researchers may encounter suspicions and resentments. Stu-
dents will be asked to reflect on the social structures that could undermine data collection for research
in this context. Subsequently, students will be required to analyse strategies for conducting research
on SMBs in specific situations.

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Case

Learning Outcomes

By the end of this case study, students should be able to:

1. translate a specific real-world problem that features a small or micro business (SMB) into
researchable and workable procedures;

2. determine the obstacles to collecting field data for SMB research;

3. propose solutions to data collection challenges for SMB research; and

4. transform and adapt traditional data collection approaches within the context of SMB re-
search.

SMBusiness Research Case

Introduction

SMBs are critical to global economic development, regardless of a country’s physical geographic features,
population, culture, or governing structures. There are more than 400 million SMBs in the world, accounting
for more than 90% of global businesses and 98% of global economic activity (National Action Plans on Busi-
ness and Human Rights, 2022). A precise definition of what constitutes an SMB varies by country. For exam-
ple, the World Bank defines an SMB as a business with fewer than 99 employees. In contrast, but of interest
to this case, in Nigeria the definition of a micro, small, or medium enterprise includes a business with 49 or
fewer employees and less than NGN 100 million in assets (equivalent to USD 200,000) (Bank of Industry,
2019). Irrespective of the definition of an SMB, extant literature suggests that SMBs around the world share
some characteristics. Three of these characteristics of SMBs are that they are (a) heterogeneous in the sense
that they exist across a wide range of economic sectors (Guo et al., 2020; Owoseni & Twinomurinzi, 2018); (b)

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dynamic and exist at various stages of development (Churchill & Lewis, 1983; Oppong et al., 2014); and (c)
owned and/or managed by people with a variety of backgrounds whose approach to business management
has been shaped by their specific backgrounds (Priyono et al., 2020; Weber & Geneste, 2014). The hetero-
geneity and dynamism of SMBs, combined with the diverse demographics of SMB owners and managers,
potentially make it difficult to conduct research on a group of SMBs, especially if researchers are mindful of
the reliability and validity of the research.

A recent study of SMBs in Nigeria, conducted during the COVID-19 pandemic, highlighted difficulties encoun-
tered in the research process. The study, which inspired the current case, was titled ‘pAndemiC moTIVatEd
Digital Transformation’ (referred to as Active-DT). The Active-DT study, which lasted for 13 months, aimed
to identify deep-seated, implicit, and social factors that encourage and sustain use of digital technology by
SMBs in Nigeria. During the course of the study, the combination of observations, interactions with partici-
pants, reflections, and knowledge gained from the Active-DT project constitute what we named the ‘active-DT
experience’. The aim of this case is to draw on the ‘active-DT experience’ and raise student awareness of the
distinctiveness of SMBs and assist students as they assess how to conduct research on a group of SMBs,
all the while bearing in mind the heterogeneity and dynamism of SMBs. Although the original research was
conducted in Nigeria, the results and lessons are applicable to research on SMBs in other countries. Based
on this context, the remaining sections of this case present an SMB research proposal within the specific con-
text of the SMB community in Nigeria. Students are asked to consider the described proposal and assess the
strategies used for the research in the described scenario.

SMB Research Proposal

At the time the scenario that is at the heart of this case occurs, it is two years into the COVID-19 pandemic.
With that in mind, the background, purpose, and contribution of the research are briefly discussed in the fol-
lowing sections.

Background of Research

Although lockdowns may have been eased, the effects of a pandemic are far from over, especially for SMBs.
The risk to the viability and solvency of overburdened SMBs is exacerbating unemployment, poverty, inequal-

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ity, and crime and will potentially lead to an economic downturn. Global economic reports have already re-
vealed signs that SMBs are struggling more than during economically confident times. Due to these and other
economic struggles, a 10.6% average gross domestic product decline was recorded across all G20 nations
in Q2 2020 (OECD, 2020). However, as SMBs in Nigeria navigate this difficult business terrain, they appear
to be adopting and adapting digital technologies, such as mobile payments, social media, and other mobile
collaborative platforms, to their business processes.

Purpose of Research

Based on the information above, researchers sought to explore how SMBs in Nigeria use digital technology
for business transformation. Specifically, researchers analysed why and how SMBs started to use digital tech-
nology during the COVID-19 pandemic. Moreover, the researchers discovered deep-seated, intuitive motiva-
tions of SMB managers to drive business transformation through digital technologies, and the sustainability
of the transformation.

Contribution of Research

The findings of this study motivated policy debates and contributed to theories and practices in digital trans-
formation and SMB innovation knowledge domains. This research also helped to advance a section of the
United Nations Sustainable Development Goal 8 (SDG 8.3), which aims to ‘promote development-oriented
policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation,
and encourage the formalisation and growth of micro-, small-, and medium-sized enterprises’ (United Na-
tions, 2020, p. 8). In terms of specific measurable impacts, the study re-evaluated participating SMB digital
transformation initiatives, identified specific measurable gaps, and made attempts to close such gaps through
experiential guidelines.

The focus of this case is not about the explicit outcomes of the Active-DT project, but rather it is about the
observations and valuable lessons learnt while conducting the research. In this regard, the case does not pre-
sent research results but presents the context of the research, which serves as a basis for student reflections
and analyses.

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The SMBusiness Research Context

In Nigeria, businesses with fewer than 50 employees and NGN 100 million (USD 200,000) in assets are clas-
sified as SMBs. Nigerian SMB entrepreneurs, owners, and managers are usually on their toes because the
Nigerian economic environment is unpredictable. It changes frequently due to inconsistent government poli-
cies and variable foreign exchange rates. This variability is marked by different rates being applied to different
market operations, which opens opportunities for thriving black markets, which in turn significantly affects im-
portation of raw materials, tools, and skills. Other triggers of unpredictability include poor infrastructure such
as consistent power outage, ineffective transport systems (rail, road, air, and sea), and poor Internet connec-
tivity. These national problems arguably are mostly responsible for unique SMB problems, namely: difficulty
in maintaining profitability; problems of attracting new customers and retaining existing customers, securing
loans, or credit; sensing and seizing business opportunities; developing new skills; and embracing the use of
new technologies (including digital technologies) to minimise the effects of the unpredictable business envi-
ronment. However, the COVID-19 pandemic seemed to suddenly change the perspective of SMB manage-
ment toward the use of technologies, with a change in the possibilities of transforming business through digital
technologies. Apparently, the lockdown and restrictive measures employed to curtail the spread of COVID-19
were the catalyst needed to change the mindsets of SMB owners and managers about exploring the benefits
of digital technologies for business transformation.

During the pandemic, many businesses started using digital technologies (Owoseni & Twinomurinzi, 2018). In
Nigeria, SMBs significantly increased their use of online payments, social media, online meetings (for exam-
ple, Zoom and whereby.com), and productivity tools (Office 365 and Google Suite). According to Roth (2019),
people are a cumulative product of their environment, background, and lifestyles and how they make deci-
sions. As a result, it is hard to assume that the massive adoption of digital technology during the pandemic is
solely a resilience response to the need for business survival during the pandemic. Perhaps there were im-
plicit motivations for the use of technology triggered by the pandemic situation, hence the need to investigate
the deep-seated motivation for digital transformations other than the COVID-19 pandemic.

Globally, university faculty members lead researcher activities. Similarly, academics at Nigerian universities
are expected to play a significant role in investigating SMBs and framing debates and conversations that iden-
tify SMB problems, and to propose reasonable and efficient solutions. However, in Nigeria there appear to be
trust and capacity issues. Trust of academics is an issue for SMB entrepreneurs as academics are viewed

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as opportunists that mainly conduct research for personal gains, such as promoting their academic careers.
The SMB personnel do not see relatable contributions to policy development and nation building as an out-
come of academic research. In terms of capacity, Nigerian higher educational institutions are poorly funded
and their capability of conducting rigorous and reliable research is thus limited. As a consequence, entrepre-
neurs, business owners, and managers hold negative opinions of academic researchers and clearly want to
see what they stand to benefit before participating in a research activity.

Strategies for Overcoming Data Collection Obstacles

Drawing on our (the authors’) experience, we list below strategies and actionable ideas we used to surmount
the data collection barriers we encountered when conducting research on SMBs in Nigeria, as previously de-
scribed.

1. Communicate research goals and conduct research in business terms. This means researchers need
to clearly communicate what participants will gain from the research. The gain has to be realised early
in the research. For instance, an entrepreneur may not see value in participating in a research project
that will help to develop a policy. Although the researcher may claim long-term gain, the study must
offer a tangible benefit in the short term. Examples include a business advisory such as suggestions
or guidelines on how to enhance specific business processes or procedures. Another example in-
cludes suggesting new tools that could be used to enhance management skills or business develop-
ment in the short term.
2. Seek to build trust in relationships with SMB personnel. A good way to do this is to ask the SMB
managers how the researcher can help them improve their business outcomes. Even if you know
what the problems of the SMBs are, still ask them, which helps to give the perception of you as a
professional concerned about finding and developing solutions for the SMB entrepreneurs, owners,
and managers. Another important action point is to humanise the research. That is, meet the SMB
participants in person. In other words, do not only send questionnaires and hire field officers, but in-
troduce yourself as the leaders of the research team and interact with the participants as much as
possible. Finally, send the participants a thank you note and provide the outcome of the study even if
not solicited. This deliberate feedback mindset helps to build authenticity and trust.
3. Work with thought-leaders in the business area. Most SMBs have associations and thought-leaders
that they respect. One productive way of engaging a group of SMBs is to work with the leaders of

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their association or with persons that the industry holds in high esteem.
4. Rethink the use of ‘informed consent’. Typically, before researchers collect data from research partic-
ipants (through interviews, surveys, workshops, etc.) they prepare a lengthy document that specifies
key information that describes the research and sets out rights and responsibilities of all parties. For
example, key information includes the purpose of the research, how the data will be analysed and
stored, and the rights of the participants and conditions for withdrawal from the project. This docu-
ment spells out informed consent. We recommend that researchers present the informed consent
document in a form in which the terms and conditions are stated using simpler and more relatable
wording. Moreover, the consent does not have to be at the beginning of the data collection in some
cases; it can be at the end of data collection before the data is processed. This way the SMB entre-
preneurs, owners, and managers would relate better and be more receptive.
5. Use innovative data collection techniques. Questionnaires, interviews, focus groups, and workshops
are arguably the default data collection techniques researchers consider when investigating SMBs.
However, these techniques are somewhat inflexible and may not elicit reliable data in some situa-
tions. As a result, we would advise using these techniques in concert with other creative approaches
such as picture elicitation. Picture elicitation involves asking research participants to produce pictures
or images that capture their thoughts or perspectives in a specific scenario, and then using the picture
or image as a basis for engaging them in discussions or interviews (Lorenz & Kolb, 2009).
6. Employ digital technology. Ensure the data collection instrument is user friendly and easy to compre-
hend. Also, if the research situation permits, use technology to recruit research participants, for in-
stance by placing advertisements on LinkedIn, Instagram, or social media platforms used by target
businesses. Technology can also be used to monitor participant engagement. For instance, using
bit.ly to identify the number of persons that clicked a survey link relative to the number of persons that
completed the survey.

The scenario created here focuses on Nigeria. As Nigeria is a lower-middle-income country according to the
World Bank, the issues discussed and approach suggested in this case are applicable to the 80 other coun-
tries that, according to the World Bank, are classified as low-income and lower-middle-income categories.

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 Discussion Questions

1. What are the challenges of collecting data when conducting research on SMBs?
2. Suggest approaches for overcoming data collection barriers in the SMB context.
3. Propose a step-by-step research strategy for gathering field data in an SMB scenario.
4. Without jeopardising the soundness and reliability of research results, highlight how the
research strategy proposed in Discussion Question 2 addressed the challenges to data
collection mentioned in Discussion Question 1.

Further Reading

Kara, H. (2020). Creative research methods 2e: A practical guide. Policy Press. https://doi.org/10.51952/
9781447356769

Oates, H., Griffiths, M., & McLean, R. (2022). Reseaching information systems and computing 2e: A practical
guide. Sage.

Owoseni, A., Hatsu, S., & Tolani, A. (2022). How do digital technologies influence the dynamic capabilities of
micro and small businesses in a pandemic and low‐income country context?Electronic Journal of Information
Systems in Developing Countries, 88(2), 1–17. https://doi.org/10.1002/isd2.12202

References

Bank of Industry. (2019). MSME’s definition, Nigeria. http://www.boi.ng/smedefinition/

Churchill, N., & Lewis, V. (1983). The five stages of small business growth. Harvard Business Review, 61(3),
30–50.

Guo, H., Yang, Z., Huang, R., & Guo, A. (2020). The digitalization and public crisis responses of small and
medium enterprises: Implications from a COVID-19 survey. Frontiers of Business Research in China, 14(1),
1–25. https://doi.org/10.1186/s11782-020-00087-1

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Lorenz, L. S., & Kolb, B. (2009). Involving the public through participatory visual research methods. Health
Expectations, 12(3), 262–274. https://doi.org/10.1111/j.1369-7625.2009.00560.x

National Action Plans on Business and Human Rights. (2022). Small and mediun-sized enterprices.
https://globalnaps.org/issue/small-medium-enterprises-smes/

Oppong, M., Owiredu, A., & Churchill, R. Q. (2014). Micro and small scale enterprises development in Ghana.
European Journal of Accounting Auditing and Finance Research, 2(6), 84–97.

Owoseni, A., & Twinomurinzi, H. (2018). Mobile apps usage and dynamic capabilities: A structural equation
model of SMEs in Lagos, Nigeria. Telematics and Informatics, 35(7), 2067–2081. https://doi.org/10.1016/
j.tele.2018.07.009

OECD. (2020). Quarterly GDP in volume terms for the G20. Retrieved 15 March 2022, from
https://www.oecd.org/sdd/na/g20-gdp-growth-Q2-2021.pdf

Priyono, A., Moin, A., & Putri, V. N. A. O. (2020). Identifying digital transformation paths in the business model
of SMEs during the Covid-19 pandemic. Journal of Open Innovation, 6(4), 1–22. https://doi.org/10.3390/
joitmc6040104

Roth, S. (2019). Digital transformation of social theory. A research update. Technological Forecasting and So-
cial Change, 146, 88–93. https://doi.org/10.1016/j.techfore.2019.05.016

United Nations. (2020). Global indicator framework for the Sustainable Development Goals and targets
of the 2030 Agenda for Sustainable Development. Work of the Statistical Commission pertaining to the
2030 Agenda for Sustainable Development. https://unstats.un.org/sdgs/indicators/Global Indicator Frame-
work_A.RES.71.313 Annex.pdf

Weber, C. P., & Geneste, L. (2014). Exploring gender-related perceptions of SME success. International Jour-
nal of Gender and Entrepreneurship, 6(1), 15–27. https://doi.org/10.1108/IJGE-04-2013-0038

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