Role of Enterprise Support Organizations (ESOS) in the Growth and Sustainability of MSMEs in Nigeria (Published)
This study examined the roles of Enterprise Support Organisations (ESOs) in the growth and sustainability of Micro, Small and Medium Enterprises (MSMEs) in Nigeria. The study was conducted in Lagos State, Abuja FCT, Abia State and Rivers State, with the aim of assessing the major roles played by ESOs and determining the effect of ESO support on MSME growth and sustainability. A multi-stage sampling technique was used to select 371 respondents, comprising MSME owners/managers, ESO personnel, programme facilitators and industry stakeholders. Primary data were collected using structured questionnaires and interview guides and analysed using descriptive statistics and multiple regression analysis. The findings showed that ESO participation strengthened the managerial capabilities of MSMEs, with a mean score of 3.63; encouraged business innovation (3.52); expanded professional networks (3.47); strengthened long-term business sustainability (3.44); and improved market access (3.40). All the mean scores exceeded the 3.0 decision benchmark, indicating that respondents generally agreed that ESOs contribute positively to MSME development. The regression result further revealed that ESO support had a positive and statistically significant effect on MSME growth and sustainability (B = 0.582; β = 0.580; t = 16.17; p < 0.001). The model was statistically significant (F = 261.45; p < 0.001) and explained 42.8% of the variation in MSME growth and sustainability (R² = 0.428). The study therefore concludes that ESO interventions are important for strengthening the capacity, competitiveness and sustainability of MSMEs in Nigeria. It recommends that ESOs strengthen managerial training and mentorship, expand market-linkage, networking and innovation support, and improve the coordination, monitoring and continuity of enterprise-support programmes.
Keywords: Business Growth, Enterprise Support Organisations, Entrepreneurship, MSMEs., Nigeria, Sustainability
The Moderating Effect of Access to Credit on the Relationship Between Entrepreneurial Orientation and Business Growth in Nigeria (Published)
This study investigates the relationship between entrepreneurial orientation and business growth among Nigerian small and medium enterprises (SMEs), with particular emphasis on the moderating role of access to credit. Using a quantitative cross-sectional survey design, data was collected from 423 (out of 41.5 million) SMEs across Nigeria’s six geopolitical zones through stratified random sampling. Entrepreneurial orientation was measured through four dimensions: innovation propensity, risk-taking behavior, proactive market behavior, and competitive aggressiveness, while business growth was assessed using sales, market share, employee, asset, and profitability growth indicators over a three-year period. Structural Equation Modeling with SmartPLS was employed for data analysis. The findings reveal significant positive relationships between all entrepreneurial orientation dimensions and business growth, with innovation propensity demonstrating the strongest effect (β = 0.387, p < 0.001), followed by proactive market behavior (β = 0.329, p < 0.001), risk-taking behavior (β = 0.241, p < 0.001), and competitive aggressiveness (β = 0.198, p < 0.001). Access to credit significantly moderates all these relationships, with the strongest moderation occurring in the innovation propensity-business growth relationship (β = 0.156, p < 0.001). The model explains 67.3% of the variance in business growth outcomes. The study concludes that while entrepreneurial orientation serves as a critical strategic capability for business growth, its effectiveness is contingent upon access to financial resources that enable the translation of entrepreneurial intentions into actual growth achievements. The study recommends that SMEs should prioritize innovation investments while financial institutions develop specialized financing products that support entrepreneurial activities to maximize growth potential.
Keywords: Business Growth, Entrepreneurial Orientation, competitive aggressivenes, innovation propensity, proactive market behavior, risk-taking behavior