Effect Of Entrepreneurial Orientation on The Performance of Selected Small and Medium Scale Enterprises In Adamawa State, Nigeria

Abstract

The study examines the effect of entrepreneurial orientation on the performance of selected small and medium scale enterprises in Adamawa State, Nigeria. Specifically, the study examines the effect of autonomy, risk taking, innovativeness and proactiveness on the performance of the selected SMEs. Descriptive survey research design was adopted and structured questionnaire was used to collect data from 85 sampled SMEs owners/managers using convenient sampling method. Multiple linear regression analysis technique was used to establish the effect of entrepreneurial orientation dimensions on performance of selected SMEs in Adamawa State. The analysis revealed that, innovativeness has significant positive effect on SMEs performance (t = 2.166, P = 0.043), proactiveness also has significant positive effect on the performance of selected SMEs (t = 0.498, P = 0.046). However, autonomy has negative insignificant effect on the performance of the selected SMEs (t = - 0.895, P = 0.385); so also risk taking has significant negative effect on the performance of the selected SMEs (t = - 2.132, P = 0.050). The study conclude that innovativeness and proactiveness have significant positive effect on the performance of the selected SMEs; that is an improvement in this dimension will lead to an enhance performance. Moreover, autonomy and risk taking has negative effect on the performance of the selected SMEs; that is an increase in this variable will lead a negative effect on the performance of the selected SMEs in Adamawa State. The study recommends that SMEs owners/managers should be encourae being more innovative and proactive in order to enhance their performance in the present unpredictable business environment where they operate.