Entrepreneurial Orientation and the Performance of Small and Medium Enterprises: Evidence from selected States in North Central Nigeria

Entrepreneurial orientation (EO) is recognized as a critical driver of firm performance, yet small and medium enterprises (SMEs) often struggle to fully leverage EO dimensions. This study explores the impact of entrepreneurial orientation (EO) on the performance of small and medium enterprises (SMEs) in selected states of North Central Nigeria. Using a survey research design with a quantitative approach, data were collected from registered SMEs in Abuja, Nasarawa, and Kogi, representing a population of 2,024,778 SMEs (SMEDAN, 2021). A sample of 399 SMEs was determined using Smith’s (1984) formula, with 380 valid responses analyzed. Results, analyzed via multiple regression in SPSS version 20, indicated that there is a significant positive relationship between innovativeness and the performance of SMEs in selected states of North Central Nigeria. It was also found that Proactiveness has significant positive impact on the performance of SMEs in selected states of North central Nigeria. Finally, risk-taking has a significant positive impact on the performance of SMEs in selected states of North Central Nigeria. The study recommended that SME owners should maximize the benefits of innovation and prioritize innovations that directly align with their strategic goals and address specific market needs. It was also recommended that SMEs should invest in market research, trend analysis, and customer feedback mechanisms to stay ahead of market changes and identify new opportunities early.

1 01 Dec, 2024

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