Entrepreneurship Skills and Performance of Small and Medium Enterprises in Oyo State

Nigerian Small and Medium Enterprises (SMEs) face persistent challenges in sales growth, profitability, employment creation, and employee satisfaction, partly due to inadequate entrepreneurship development and skill enhancement programmes. Despite existing support initiatives, their impact remains inconsistent. This study aimed to examine the influence of entrepreneurial skills on SME performance in Oyo State, Nigeria. The population consisted of all 7,987 SME managers operating in the state, based on data from the National Bureau of Statistics. Using the Taro Yamane formula, a sample size of 381 was determined. Purposive sampling was employed to select participants from six local government areas across the three senatorial districts, ensuring balanced geographical representation. A structured questionnaire, designed on a four-point Likert scale, was adopted as the data collection instrument. Its validity was confirmed through expert review, and reliability was established via test-retest with a Cronbach's Alpha of 0.879. Data were analysed using SPSS v24, employing descriptive statistics and multiple regression to assess the impact of entrepreneurial skills on SME sustainability and performance. Results showed a positive impact on sales growth (x = 3.20), indicating that entrepreneurial competencies such as innovation and market engagement enhance customer base and revenue. Profitability results (x = 3.12) suggest that financial acumen and strategic decision-making significantly improve profit margins. Operational efficiency (x = 3.13) was improved through better resource management and streamlined processes. Effectiveness (x = 3.04) was positively influenced by optimal resource use and enhanced productivity. Strategic activities (x = 3.15) were strengthened through proactive planning and market responsiveness. The findings confirmed that entrepreneurial competencies such as creativity, communication, critical thinking, and strategic planning are essential drivers of SME performance. The study concludes that entrepreneurship skills significantly enhance business sustainability, operational outcomes, and competitiveness. It recommends targeted training, mentorship, financial literacy programmes, process optimisation workshops, and strategy development support. These initiatives should be implemented to strengthen SME capacity, promote innovation, and ensure long-term growth.