Entrepreneurial Strategies and Small and Medium Scale Enterprises (SMEs) Development in Ogun State, Nigeria

Abstract

This study empirically examined entrepreneurial strategies and small and medium scale enterprises (SMEs) development in Ogun State, Nigeria considering they have increasingly become a powerful engine for economic growth and development in today’s dynamic and competitive business environment. Entrepreneurial strategies was measured using competitive strategy, human resource strategy, while SME development was measured by return on investment, employee productivity The population of the study considered was two thousand four hundred and twenty five (2425) employees and a sample size of four hundred and forty six respondents were determined using Taro Yamane formula for sample size. A structured questionnaire titled ‘Entrepreneurial Strategies and Small and Medium Scale Enterprises (SMEs) Development in Ogun State, Nigeria’ was validated and administered with ninety one point nine percent response rate. Cronbach Alpha reliability for major constructs had an average value of 0.83. The data collected was analysed using linear and multiple regression analysis. Findings reveal there is a positive and significant relationship between entrepreneurial strategies and SME development (R = 0.535, at p < 0.05). The model R2 (coefficient of determination) was 0.287, constant value (alpha) of 44.670, the coefficient of independent variable (beta = 0.491) and F-Value yielded 163.890. Competitive strategy had significant effect on return on investment and this effect was statistically significant at (R = 0.400, R2 = 0.160, p < 0.05, B = 0.360, F = 77.727). There is also a significant and positive relationship between human resource strategy and employee productivity (R = 0.4429, R2 = 0.184, p < 0.05, B = 0.385, F = 91.833). In conclusion, entrepreneurial strategies have a strong positive relationship on the development of SMEs in Ogun State, Nigeria. The adoption of these strategies is germane for SMEs to enable them in the midst of intense competition for their firms to still be sustained, survive and grow consistently. The study has recommended that SMEs should adopt entrepreneurial strategies to enable them increase their returns on investment, employee productivity, which when engaged in their firms enhances SME development.