A Study of Entrepreneurial Orientation of Small-Scale Enterprises Operation in Nigeria.

Abstract

Entrepreneurship has become an important issue for policy in most developing countries. At one level, enterprise creation is recognized as important for employment, growth and enhancing sustainable human development. At another level, there is concern to encourage existing business enterprises to become more entrepreneurial as a means of enhancing international competitiveness. Entrepreneurial Orientation (EO) which is reflected in recurring organizational behaviour such as innovativeness, pro-activeness and risk-taking of entrepreneurs is particularly important for the growth of small-scale enterprises.
The research study explores the extent to which entrepreneurial orientation factors were demonstrated by small scale enterprise operators. The study was carried out in Oyo State of Nigeria. The focus of the study was a purposely selected sample of 60 owner-managed small-scale enterprises engaged in manufacturing activities. The questionnaire was the main instrument of the study and it contains a set of structured questions to measure the entrepreneurial orientation of the respondents by using the 5 Point Likert Scale anchored by Never, Rarely, Sometimes, Usually and Always. Data were analyzed with the aid of Standard Package for Social Scientists (SPSS) using descriptive method of analysis.
The outcome of the study on the three entrepreneurial orientation factors shows a very great disparity from the personality traits expected of a good entrepreneur. The study concludes that aversion to risk taking, lack of innovation and proactiveness by the respondents, which are critical factors necessary for the growth of small enterprises, is very low among the respondents. Therefore, there is an urgent need to evolve a comprehensive training package for entrepreneurs in Nigeria to develop and sharpen their entrepreneurial orientation so as to enhance their competitiveness particularly in this age of globalization and market driven economy.

IFE PsychologIA Vol. 16 (1) 2007: pp. 90-102