ENTREPRENEURIAL START-UP AND PERFORMANCE OF SMEs IN NORTH EASTERN NIGERIA: THE ROLE OF ENTREPRENEURIAL ORIENTATION.

Abstract

Objective: This study examines the intervening influences of EO on entrepreneurial start-ups to achieve SME performance in North Eastern, Nigeria.

Methodology: To achieve the objectives of the study, primary data were collected using questionnaire from a sample size of 400 SME owners in North-Eastern States of Nigeria, comprising 6 States; Yobe, Borno, Bauchi, Taraba, Adamawa and Gombe. The data collected was analyzed using PLS-SEM (SmartPLS version-4) to evaluate the hypothesized relationships. Results: The results indicated that there is no positive relationship between ESU and SME performance. Secondly, the mediation results revealed that innovativeness does not mediate between ESU and sales growth performance, innovativeness fully mediates the relationship between ESU and profit growth performance of SMEs. Proactiveness and Risk-taking both fully mediate the relationship between ESU and SMEs performance (sales growth and Profits growth).

Conclusions: We conclude that entrepreneurs, SME owners, managers and entrepreneurs should appreciate the role of EO to enhance business performance. Innovationess, proactiveness and risks-taking help entrepreneurs to successfully navigate challenging-complex environments to achieve their set goals. Therefore entrepreneurial orientation (innovativeness, proactiveness and risk-taking) is key to business performance. Recommendations: The study recommend start-ups, entrepreneurs and SME owners to be entrepreneurially-oriented to achieve the objective of starting a business. And to foster an entrepreneurial mindset for longtime competitiveness and success. We further recommends entrepreneurial start-ups to be proactive, highly innovative and take calculated risks to be able to navigate through the uncertainties and capitalize on opportunities in a challenging complex environment to achieve their objective.