INFLUENCE OF ENTREPRENEURIAL COMPETENCIES ON NON-FINANCIAL PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN NORTH EAST, NIGERIA

Abstract

This study investigated the influence of entrepreneurial orientation on financial performance of small and medium-scale enterprises (SMEs) in North-East Nigeria. The study had two objectives, two research questions, and two null hypotheses. A quantitative research design utilizing a survey approach was adopted for the study. The target population comprised registered manufacturing SMEs in North-East Nigeria, covering Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe States. A sample size of 306 SME managers was used for the study. The instrument for data collection was a structured questionnaire Entrepreneurial Competencies on Non-Financial Performance of SMEs Questionnaires (ECNFPSMESQ) developed by the researcher to measure entrepreneurial competencies (organizing and opportunity competencies), and non-financial performance of SME. The instrument was validated, and reliability was established using Cronbach Alpha. The reliability coefficient of the instrument was 0.883. Data collected were analyzed using descriptive statistics of mean and standard deviation, while inferential statistics of linear regression was used to test the null hypotheses at 0.05 level of significance. The study found that all competencies exhibit moderate influence on non-financial performance. The study concludes that entrepreneurial competencies are critical drivers of non-financial performance of SMEs in North-East Nigeria. It was recommended that SME managers should strengthen and develop and organizing and opportunity competencies to enhance overall business performance, while policymakers should design integrated support programs that promote both entrepreneurial competency development.