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)
