EFFECT OF STRATEGIC ENTREPRENEURSHIP ON SMES’ PERFORMANCE IN NORTH CENTRAL NIGERIA
Keywords:
Innovativeness, Risk-Taking, Proactiveness, SMEs PerformanceAbstract
Despite the recognized importance of Small and Medium-sized Enterprises (SMEs) to economic growth and employment generation, many SMEs continue to struggle with achieving consistent performance outcomes. This raises the need to understand the strategic entrepreneurial factors that can enhance their success. This study examined the effects of innovativeness, proactiveness, and risk-taking on the performance of SMEs in North-Central Nigeria. The study employed a survey research design with a sample size of 398 SME owners and managers, using a structured five-point Likert scale questionnaire for data collection. Data analysis was carried out using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings revealed that innovativeness and risk-taking significantly and positively influenced SME performance, while proactiveness did not show a statistically significant effect. These results indicate that SMEs that cultivate innovative practices and engage in calculated risk-taking are more likely to achieve superior performance. The study recommends that SME operators strengthen their innovation capacity, invest in creative business processes, and adopt well-evaluated risk strategies. Furthermore, policymakers and business development agencies should provide supportive frameworks such as innovation funding, training, and advisory services to help SMEs in North-Central Nigeria enhance competitiveness and achieve sustainable growth.References
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