Entrepreneurial Behaviour and the Performance of Small and Medium Enterprises in South-West, Nigeria

Abstract

In recent times, the performance of Small and Medium Enterprises (SMEs) has generated increased interest because of their crucial contribution to the national and global economies. Against this back drop, this study empirically investigated the impact of entrepreneurial behaviour on the performance of SMEs in South-West, Nigeria. Specifically, this study evaluated the combined impact of entrepreneurial orientation, entrepreneurial competency, entrepreneurial mindset, and social network on the performance of SMEs. This study adopted a survey research design. The population of this study consisted of one hundred and forty-nine thousand, three hundred and seventeen (149,317) registered SMEs in operation with Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) as at the end of December, 2021 in South West, Nigeria. This study adopted a tabular approach proposed by Gill et al. (2010) Gill et al. (2010), as cited in Taherdoost (2017), to arrive at a sample size of six hundred and fifty-nine (659) respondents. This study employed multi-stage sampling technique, involving stratified sampling, proportionate sampling, and simple random sampling. The primary data used for the analyses were collected from the respondents through the use of structured questionnaire, and responses were analysed using descriptive and multiple regression analysis. The results revealed entrepreneurial behaviours (entrepreneurial orientation, entrepreneurial competency, entrepreneurial mindset, and social network) had a significant and positive impact on the performance of SMEs (Adjusted R² = 0.878, p< 0.05). This study concluded that entrepreneurial behaviours enhanced the performance of SMEs in South-West, Nigeria. The study recommended that SMEs’ owners and managers should adopt an entrepreneurial approach, including entrepreneurial orientation, entrepreneurial competency, entrepreneurial mindset, and social network strategies. By doing so, they can develop more innovative products and services, outperform competitors, improve output, and retain customers in their operating sector.