EFFECT OF ENTREPRENEURIAL SKILLS AND ACCESS TO FINANCE ON SMEs PERFORMANCE IN FEDERAL CAPITAL TERRITORY ABUJA, NIGERIA

Entrepreneurship development is a catalyst for transforming business ideas into sustainable enterprises, creating employment opportunities, and driving economic growth. This study examined the effect of entrepreneurship development on the performance of small and medium enterprises (SMEs) in the Federal Capital Territory (FCT), Abuja, Nigeria. Specifically, it investigated the influence of entrepreneurial skills and access to finance on SME performance. Despite their contributions to economic growth, employment generation, innovation, and poverty reduction, many Nigerian SMEs face challenges arising from inadequate entrepreneurial competencies and limited financial resources. The study adopted a descriptive survey research design, targeting a population of 22,861 registered SMEs in the FCT, Abuja. Using Taro Yamane’s formula at a 5% level of precision, a sample size of 393 was determined, with an additional 10% allowance for potential non-response, resulting in 432 respondents. Data were collected using a structured questionnaire and analysed through descriptive and inferential statistics, including multiple regression analysis. The findings revealed that entrepreneurial skills and access to finance had positive and statistically significant effects on SME performance. Specifically, improved managerial, technical, and business skills enhanced entrepreneurs’ capacity to manage resources, make informed decisions, identify opportunities, and improve operational efficiency. Similarly, access to finance supported business expansion, innovation, and effective resource utilisation. The study concluded that entrepreneurship development is a significant driver of SME performance in the FCT, Abuja. It recommended that government agencies, financial institutions, and entrepreneurship development organisations strengthen capacity-building programmes, promote practical entrepreneurial training, and provide affordable and accessible financing to SMEs. These measures would enhance enterprise growth, competitiveness, sustainability, and their contribution to Nigeria’s economic development.