Assessing the Influence of Entrepreneurial Orientation on the Performance of Small and Medium Scale Enterprises in North-Central Nigeria.

Abstract

Abstract This study examined the influence of entrepreneurial orientation on the performance of small and medium-scale enterprises (SMEs) in North-Central Nigeria, with specific emphasis on the effects of innovativeness on productivity and risk-taking on profitability. The study sought to establish the strategic relevance of entrepreneurial orientation dimensions in enhancing SME competitiveness and sustainability in a challenging business environment.The study adopted a quantitative survey research design. Data were collected from 319 owners, managers, and senior staff of 14 selected SMEs across North-Central Nigeria using a structured questionnaire designed on a fivepoint Likert scale. A census sampling approach was employed due to the manageable population size. Content validity was ensured through expert review, while reliability was confirmed using Cronbach’s Alpha. Data were analyzed using Ordinal Logistic Regression (OLR) with the aid of SPSS version 26 to test the study hypotheses.The findings revealed that innovativeness has a significant positive effect on SMEs’ productivity (β = 1.854, p< 0.05), indicating that enterprises adopting innovative practices achieve improved operational efficiency and output. Similarly, risk-taking significantly and positively influences SMEs’ profitability (β = 1.365, p< 0.05), suggesting that firms willing to undertake calculated business risks are more likely to attain superior financial performance. The results demonstrate that entrepreneurial orientation significantly enhances SME performance through improved productivity and profitability.The findings of the study offer practical insights for SME managers and policymakers on the strategic importance of fostering innovation and calculated risktaking to achieve sustainable business growth and competitiveness.