Entrepreneurial Orientation and Performance of Small and Medium Enterprises in Southwestern Nigeria

The study determined the effect of entrepreneurial orientation on SMEs performance. These were with the view to providing information on the relationship between entrepreneurial orientation and SMEs performance in Southwestern Nigeria. The study adopted a descriptive survey research design. Primary data were employed for the study. The study population comprised 26,744 SMEs in Southwestern Nigeria (NBS-SMEDAN, 2021 Report). A sample size of 394 SMEs were derived using the Taro Yamani (1967) formula for the study. Multi stage sampling technique was used for the study. At the first stage, stratified random sampling technique was used to select Lagos, Oyo and Osun states as states with the highest number of SMEs in Southwestern Nigeria (NBS-SMEDAN, 2017 Report). At the second stage, purposive sampling technique was used to select seven sectors based on the proliferations of SMEs as stated in the NBS -SMEDAN National Survey of Micro Small & Medium Enterprises (2021). These include: Agriculture, Manufacturing, Building and Constructions, Trading, Hotel/ Restaurant, Estate/Renting and Education. At the third stage, the 394 respondents were selected from the chosen sectors within the States using the proportional sampling technique as the sample size. Data were obtained through the administration of copies of a questionnaire. The results revealed that innovativeness (t = 2.516, p < 0.05), risk taking (t = 3.846, p < 0.05) and competitive aggressiveness (t = 5.307, p < 0.05) had significant effect on the performance of the SMEs. The study concluded that entrepreneurial orientation enhanced the performance of SMEs in Southwestern Nigeria.