EFFECT OF ENTREPRENEURIAL ORIENTATION ON THE FINANCIAL PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES IN KWARA STATE, NIGERIA

Abstract

The impact of entrepreneurial orientation on small and medium-sized businesses' financial performance in Kwara State, Nigeria, was investigated in this study. A cross-sectional survey design was used in the study. A structured questionnaire was suggested as the main tool of data collection, and the target population consisted of SME owners/managers operating in significant commercial locations in Kwara State. The results presented in this article are illustrative/simulated and are not claimed to be actual field observations in order to illustrate the suggested analytical procedure. The analysis was conducted using an illustrative sample of 275 valid responses. Multiple regression analysis, Pearson correlation, and descriptive statistics were used to analyze the data. The illustrative findings showed that risk-taking, proactivity, innovation, and financial performance were all positively correlated. The three entrepreneurial-orientation dimensions jointly explained about 46.4% of the variation in financial performance, according to the regression model's illustrative R² of 0.464. Financial performance was positively impacted by innovativeness (β = 0.401, p <.001), proactiveness (β = 0.219, p <.05), and risk-taking (β = 0.137, p <.05). The study concludes that when entrepreneurial activities are purposefully matched with market opportunities and available resources, entrepreneurial orientation can constitute an important strategic capability for improving the financial outcomes of SMEs. According to the article, Kwara State's SME owners and managers should improve their capacity for innovation, create proactive market strategies, and take calculated risks rather than careless ones.