A PROPOSAL ON IMPACT OF ENTREPRENEURIAL ORIENTATION ON SMES SURVIVAL POTENTIAL IN LAGOS STATE

Abstract

The study will investigate the impact of entrepreneurial orientation on SMEs survival potential in Lagos state. The following objectives will be used for the study; To evaluate strategies that can facilitate survival and growth of SME’s in Lagos state, to ascertain the extent to which managerial experience moderates the influence of entrepreneurial orientation on SMEs in Lagos state and to ascertain the contribution of entrepreneurial orientation  on the survival of SMEs in Lagos state. The method of data analysis that will be used by the researcher is the simple percentage. More so, percentage and degrees of the responses will also be used in the analysis. Here, the ratio of those whose responses were not in the affirmative will be found and conclusions will be drawn there upon. Representations of the level of responses will be made in tabular form. The Statistical Package for Social Sciences (SPSS) software will be used to test the hypotheses

 Chapter one

Introduction

1.1Background of the study

Small and medium Enterprises (SME) are the key routes for economic development in several developed and developing economies, and their relevance for local, regional, and national development has been growing (Ndabeni, 2008; Cooper & Park, 2008; Lalkaka & Abentti, 1999). In many nations, small and medium firms have also become a formidable common form of business organization and the primary source of employment and output (Nichter & Goldmark, 2009; Neumark, 2008). That is why small and medium-sized enterprises (SMEs) are commonly recognized as “effective instruments for income production and economic progress” (Dimirchi & Rahimi, 2011:Pg 855). “SMEs account for more than 95 percent of all enterprises in many industrialized countries, and they play a vital role in world economies,” according to the report (Chiao, Yang, & Yu, 2006: Pg 595)

As a result, the literature suggests that SME benefits to any economy are readily apparent, such as contribution to an economy in terms of productive employment opportunities, developing and adapting appropriate technological advancement, and establishing a platform for industrialization. Nigeria, Ghana, and Kenya, for example, have recognized the importance of SMEs and have developed policies to encourage, support, and fund them.

A blossoming and blooming SME sector is said to be one of the essential characteristics of a flourishing and developing economy. SMEs, as a result, play a critical part in a country’s growth by providing jobs for a growing rural and urban labor force, as well as ensuring the economy’s long-term viability and innovation. SME’s have a large potential to bring about social and economic transformation and development by contributing considerably to job creation, income production, and accelerating development and expansion in urban and rural regions, among other reasons (Hellberg, 2000; Olutunla: 2001:OCED, 2004: Williams, 2006).

In a similar vein, (Ligthelm, 2008) claims that small and medium enterprises benefit any economy by developing skilled and semi-skilled workers, developing lower income groups, attracting significance, and improving community living standards by implementing appropriate technological approaches to increase income growth. Recognizing the critical significance of SMEs and private sector businesses in overall economic development, many emerging economies, including Nigeria, have established enterprise support networks and institutions to help these businesses grow.

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