Leveraging Entrepreneurial Orientation for the Performance of Small and Medium Enterprises (SMEs): Evidence from Oyo State, Nigeria

Abstract

This study investigates the relationship between Entrepreneurial Orientation (EO) parameters and SME performance with particular reference to Oyo State, Nigeria. In particular, the study uncovers the impact of risk taking, innovation, proactiveness, aggressiveness, and autonomy on SME performance. Using convenience sampling technique, 680 SMEs operating in agriculture, manufacturing and service sectors in all 33 local government areas of Oyo State were selected. Data analysis was conducted through path analysis using STATA 15. The study found that there is a positive relationship between all EO parameters and SME performance. Furthermore, all these EO parameters were found to be factors that promote the success of SMEs under globalization. Therefore, SMEs need to continue to foster a culture of strategic risk-taking, innovation, initiative and autonomy to remain competitive and grow stronger in the global competitive environment.