Abstract
Small and medium-sized businesses (SMEs) are the foundation of any economic activity. As issues arise in the environment, there is a need to incorporate or optimize several other new capabilities to explain small and medium enterprises' competitiveness. The study aims to investigate entrepreneurial capabilities and SMEs' competitiveness in Lagos state. It employs a survey research design. Cross-sectional data from the primary source were collected through the means of a validated and reliable questionnaire. A sample of 400 respondents was purposefully drawn from the population. The data were analyzed using ordinary least square statistics. The results show that entrepreneurial networking is the most significant driver of SMEs' competitiveness, followed by entrepreneurial networking and then by proactiveness. The study concludes that entrepreneurial capabilities are critical to SMEs' competitive advantage. It recommends that entrepreneurs should develop their capabilities to be able to achieve competitiveness. Keywords: Entrepreneurial Capabilities; Proactiveness; Marketing Orientation; Networking, SMEs.
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