Impact of Entrepreneurship Practices on small and Medium Enterprises Performance in Lagos State, Nigeria

Abstract

This study explored the impact of entrepreneurial practices on SMEs' performance in Lagos State, Nigeria. The study examined two specific objectives: determining the influence of entrepreneurial practices (mentoring, entrepreneurial mindset, creativity and innovation, and product development) on entrepreneurial skill acquisition; and investigating the impact of entrepreneurial practices (mentoring, entrepreneurial mindset, creativity and innovation, and product development) on income generation of SMEs in Lagos State, Nigeria. The study employed a descriptive survey research design to collect data from the focus respondents. The sample size of 387 was determined using the Taro Yamane formula from a population of 11,663 registered SMEs in Lagos State. Data collection involved distributing 387 structured questionnaires, and after retrieving and assessing them, 355 questionnaires were found suitable for analysis using the SPSS Statistical Package Version 26. The results revealed that entrepreneurship practices (R2 = 0.452, Adj.R2 =0.449, P< 0.05) have a significant influence on entrepreneurial skill acquisition, and entrepreneurship practices (R2 = 0.688, Adj.R2 =0.686, P< 0.05), have a significant impact on income generation of SMEs. The study concludes that mentoring, entrepreneurial mindset, creativity and innovation, and product development positively influence entrepreneurial skill acquisition and income generation. The study recommends that the government and stakeholders should create a multifaceted entrepreneurship training programme, involving mentorship, mindset cultivation, creativity, innovation, and, in collaboration with local educational institutions to bridge skills gaps.