Impact of Entrepreneurial Orientation on SMEs Survival Potential in Lagos State
CHAPTER ONE
Objective of the study
The following research hypotheses will be investigated;
- 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.
- To ascertain the contribution of entrepreneurial orientation on the survival of SMEs in Lagos state.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Entrepreneurial Orientation
Entrepreneurial orientation (EO) is described as a firm-level tactical orientation which captures a firm’s strategy-making exercise, managerial philosophies, and behaviours that are entrepreneurial (Anderson et al., 2009). Firms are said to having EO when they support and exhibit entrepreneurial behaviour to become a distinctive organizational attribute (Covin & Wales, 2019). One of the similarities among past EO research is the inclusion of proactiveness, innovativeness, and calculated risk-taking as central aspects or dimensions of the orientation (Wales, 2016, 2013). In the past, EO has largely been measured using a nine-item psychometric instrument developed by Dennis Slevin & Jeff Covin (Wales, 2015). This measurement tool captures the viewpoint of Danny Miller that EO is a ‘collective catchall’ construct which signifies what it means for a firm to be termed entrepreneurial across a broad range of contexts (Miller, 1983). A seminal quote from Miller (1983): Therefore, reviews of extant EO research shows that most of the previous studies have adopted Miller’s viewpoint of EO as the combination of proactiveness, innovativeness, and calculated risk-taking (Zhai et al., 2018). Research on the individual dimensions of calculated risk-taking, proactiveness, innovativeness, and resources leveraging have found that the dimensions can be linked in different ways to form configurations (Linton & Kask, 2017, 2016). As a strategic orientation of business, EO improves a firm’s performance as well as overall variance. Wales (2015) added that EO as an essential firm strategic orientation, the depth, and breadth of research on EO continues to grow as the concept is adopted to understand the effects of being entrepreneurial across all facets (Wales, 2015).
CHAPTER THREE
Research methodology
Research Design
The research design adopted in this research work is the survey research design which involves the usage of self-designed questionnaire in the collection of data. Under the survey research design, primary data of this study will be collected from selected SMEs in Ikorodu local government of Lagos state in order to determine impact of entrepreneurial orientation on SMEs survival potential. The design was chosen because it enables the researcher to collect data without manipulation of any variables of interest in the study. The design also provides opportunity for equal chance of participation in the study for respondents.
Population of Study
The population of study is the census of all items or a subject that possess the characteristics or that have the knowledge of the phenomenon that is being studied (Asiaka, 1991). It also means the aggregate people from which the sample is to be drawn.
Population is sometimes referred to as the universe. The population of this research study will be Seventy-five (75) from selected SMEs in Ikorodu local government of Lagos state
Sample Size and Sampling Techniques
The researcher made use of stratified sampling technique because all the members have the same probability of occurrence. The researcher narrowed down the samples to selected SMEs in Ikorodu local government of Lagos state in order to determine impact of entrepreneurial orientation on SMEs survival potential. In this study, the researcher used the [TARO YAMANE FORMULA] to determine the sample size.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION
This chapter is about the analysis and presentation of data collected from the field through questionnaire. The analysis of the data with particular question immediately followed by the presentation of findings.
As mentioned in chapter three, 63 questionnaires were administered and 50 were retrieved and necessary analysis was carried out on them.
Data Presentation
This is the presentation of the quantitative data collected from the respondents through the questionnaire drawn-tabulation and percent (%) age will be used to analyze the data accordingly.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain Impact of Entrepreneurial Orientation on SMEs Survival Potential in Lagos State. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of Entrepreneurial Orientation on SMEs Survival Potential in Lagos State..
Summary
This study was on impact of Entrepreneurial Orientation on SMEs Survival Potential in Lagos State. Three objectives were raised which included: 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 total population for the study is 75 selected SMEs in Ikorodu local government of Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
Undoubtedly, SMEs are a driving force in the economic development of developed and developing countries. SMEs in Africa and Nigeria in particular are often constrained by so many factors to survive and remain sustainable. Survival strategies have been developed, which this research has synchronized with entrepreneurial orientation and network model. Theses survival strategies have immensely contributed to the growth and sustainability of the studied SMEs. They serve as the running engine through which the economy survives. By building on previous research, this study examined the relationship between strategies for SME survival and offers a number of propositions for testing regarding this relationship. The result indicates a positive relationship between EO and SME’s survival. This is consistent with the theory that SME’s with high EO out perform and have high chances of survival than SME’s with low EO (Kroop, (2006). The research result revealed that in a dense competitive mobile economy such as Nigeria the application of strategies for SME’s survival is a top most priority. For this to be achievable owners /promoters of SME should practice quality management which will play a critical role in improving the profitability of many SME’s in their early years of operation. It is necessary also for SME’s owners to formulate adequate proactive strategies which will help to reposition SMEs in the market place by launching new products ahead of future demand. Managers with good management experience should be able to apply appropriate financial strategies so as to be prudent in recordkeeping which will provide SMEs with accurate financial information on which decisions are the based in areas of sales projections, determining breakeven point of profits, and ascertaining other financial analyses. The implication of prevalent lack of proper accounting records has led to the closure of most SMEs thereby making it a highly significant issue for SME, survival and sustainability
Recommendation
The study, therefore, recommends that there is need for orientation and strong advocacy for entrepreneurs in SME’s in Nigeria and Africa to change the mindset on how they are operating their businesses. They should inculcate the attitude of exploring modern scientific business practice and adapting to various survival strategies proposed to operate their businesses.
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