Impact of Entrepreneurial Traits on the Performance of Small and Medium Enterprises (SMEs) In North Central, Nigeria (Published)
This study examined the impact of entrepreneurial traits on the performance of Small; and Medium Enterprises (SMEs) in North Central Nigeria. The specific entrepreneurial traits considered in the study include entrepreneurial need for achievement, entrepreneurial passion, and self-efficacy. A sample size of 400 SME owners and managers was selected for the study. Data collected through a structured questionnaire were analyzed using Structural Equation Modeling (SEM) to test the hypothesized relationships among the variables. The findings of the study revealed that entrepreneurial need for achievement has a positive and significant effect on SME performance. Similarly, entrepreneurial passion was found to have a positive and significant influence on SME performance, indicating that emotional attachment and enthusiasm for business activities contribute to improved outcomes. The results further showed that self-efficacy has the strongest and most significant effect on SME performance among the variables examined, suggesting that entrepreneurs’ confidence in their abilities plays a critical role in determining business success. Based on these findings, the study concludes that entrepreneurial traits significantly influence the performance of SMEs in North Central Nigeria, with self-efficacy emerging as the most important predictor. The study recommends that entrepreneurship development programs should focus on strengthening entrepreneurs’ psychological attributes such as achievement motivation, passion, and self-confidence through training, mentoring, and capacity-building initiatives. These efforts are essential for improving SME performance and enhancing sustainable economic development in the region.
Keywords: SMEs performance, entrepreneurial traits, structural equation modeling (SEM)