Citation:

Olaitan Daniel Alabi, PhD, Omotayo Abraham Ogunniran, Jonah Emmanuel Oshevire. "Effects of Entrepreneurial Attitudes Sub-Variables on SMEs Performance" International Research Journal of Economics and Management Studies, Vol. 4, No. 2, pp. 104-116, 2025.

Abstract:

The topic of entrepreneurial mindsets and their impact on firm success continuously has sparked numerous conversations in the body of current literature. This has created the need to examine how these entrepreneurial attitudes could influence small and medium enterprises’ development, considering their entrepreneurial attitudes and expansion roles in the economy. The study observes the combined effect of entrepreneurial attitudes sub-variables on SMEs’ survival. The main objective of this study was to integrate entrepreneurial attitudes to develop a model that explains SME performance. The descriptive survey research design was employed in the study. Using the regression analysis, the study established that the combined dimension of entrepreneurial attitudes (Personality inclination, Emotional Flexibility, Opportunity Recognition, and Personal perception) has a positive predicting effect on SME performance (F= 1781.820, R= 0.959, R2 = 0.919, p < 0.05). The study, therefore, suggests that combinations of these relevant elements of entrepreneurial attitudes should be possessed and be given proper attention with concerted efforts made to integrate them into the operations of owners/managers of SMEs as the combined significant relationship exists between these entrepreneurial attitudes and the development of SMEs.

References:

[1] Abbas U.I. & Martins M.A. (2020). Influence of Entrepreneurial Attitudes on Firms Performance. Evidence from Small and Medium Enterprises in Nigeria. International Journal of Economics and Financial Issues, 10(2), 99-106.
[2] Abahaand E. and May J. (2016): Firm Capability, Entrepreneurship Competency, and SME performance, accessed in from http:/www.researchgate.net/publication/31542547.
[3] Adelekan, S.A. (2021A). The reverse effect of social entrepreneurship and Organizational performance. Global Journal of Business, Economics, and Management: Current Issues. 11(1), 69-79.
[4] Adelekan, S.A., & Eze, B.U. (2020). Technology Incubator and Entrepreneurship Development. In human capital formation for the fourth industrial revolution.(pp.286-304).IGI Global.
[5] Adegbite O. ( 2001): “Business Incubators and Small Enterprise Development: The Nigerian Experience”, Small Business Economics, 17,3, 157.
[6] Alabi, O.D. & Sanya, E.O (2021) “Moderating role of Entrepreneurial Attitude on the Relationship between Opportunity Recognition and SMEs Performance”. Pilot Study. Journal of Business Administration.Vol.21, No.1&2, 70-88.
[7] Agarwal R., Echambadi, Franco R., A.M and Sarkar, M.B.( 2004).“Knowledge Transfer Through Inheritance: Spin-out Denervation, Development and Survival”, The Academy of Management Journal.
[8] Akoso-Amaa, K. and Mapima, C. (1995): “Transfer and the Acquisition of Managerial Capability in Tanzania: Analysis and Policy Implication”, Ogbu, Oyeyinka and Mlawa(ed), Technology Policy and Practice in Africa, IDRC, Ottawa 3.
[9] Asenge, E. L., & Agwa, T. R. (2018) Entrepreneurial attitudes and entrepreneurial competencies as determinants of SMEs performance in developing countries. Global Journal of Management and Business Research. Vol. 18, Issue 13, Version 1.0.
[10] Baker W.E and Sinikula(1999) ‘The Synergic Effect of Market Orientation on Organizational Performance. Academy of Marketing Science Journal 27 (4), 411-427.
[11] Boudreaux, C. J., Escaleras, M. P. & Skidmore, M. (2019). Natural disasters and entrepreneurship activity. Economics Letters, 182, 82-85.
[12] Cao, Q., Kang, T., and Lim Y. (2017): “The effect of Entrepreneurial Capability on the Capability of Chinese SME”, Journal of International Trade and Commerce, 13(5),217.
[13] Chittihawaom, C. and Islam A. (2013): Factors Affecting SME Success in Thailand, Asian Social Science, 7(5), 99-116.
[14] Chinedu, I.O.(2013) Practical Guide to Research Methodology in Management. Onitsha – Nigeria: Good Success Press.
[15] Colombo, M. and Grilli L. (2005): “Founders’ Human Capital and the Growth of New Technology Based Firms: A Competence- Based View”, Research Policy, 34, 795-816.
[16] Davidsson, P. and Honing B.( 2003): “ The Role of Social and Human capital among Nascent Entrepreneurs, Journal of Business Venturing, 18,301- 331.
[17] Daniel, F., Daniel M., & Florence M. (2014). Differences in entrepreneurial attitudes and aspirations among women in Kenya. Research Journal of Entrepreneurship.Vol.2|No. 5.
[18] Douglas, EI & Shepherd, DA(2000) ‘Entrepreneurship as a utility-maximizing response’, Journal of Business Venturing, vol. 15, no. 3, pp.231–251.
[19] Dogan, N. (2015): The Intersection of Entrepreneurship and Strategic Management: Strategic Entrepreneurship, Journal of Turkey and Social Behaviour, 195, 1291.
[20] Endi, S., Surachman, A., Djumilah H. (2013). Entrepreneurial Characteristics and Competency as determinants of Business Performance in SMEs. IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X. Volume 7, Issue 3, PP 31-38 www.iosrjournals.org.
[21] Gao,Q., Kang, Y. and Lim, Y.( 2017): Effect of Entrepreneurial Capacity on SMR Performance, Journal of International; Trade and Commerce, 13(5).
[22] Guptal, P.Guhanmond, S. and S. Krishnaswani (2013): Firms Growth and its Determinants, Journal of Innovation and Entrepreneurship,23-41.
[23] Ghazikalaye, T. R. & Roshani, F.( 2016). “The effect of entrepreneurial orientation on business performance with regard to the role of Customer Relationship Management”. (Case Study: Ghavamin Bank city of Kermanshah). International Journal of Humanities and Cultural Studies (IJHCS) ISSN 2356-5926, 1379-1387.
[24] Govori, A. (2013). The relevance of accounting Records for the Survival of Small and Medium Scale Enterprises (SMEs). African Journal of Entrepreneurship, 6(2): 31-48.
[25] Hitt, M., Ireland, R. and Hoskisson R.E. (2009): “Strategic Management: Competitiveness and Globalization”, (8th ed), Mason, OH: Cengage Learning.
[26] Hogg, MA & Cooper, J. (2007).Sage Handbook of Social Psychology, Sage Publications, London.
[27] Haliq, I., Pambudy, R.B., & Alfikri, S. (2018). “Influence of Entrepreneurship Orientation on Business Performance of Broiler Husbandry in the Partnership and the Independent Scheme in Bogor. International Journal of Agricultural System. 6(1): 25-34.
[28] Haitham, A., Armanurah M., &Awanis, K. (2018). The influence of entrepreneurial attitude on ERAD’ Small Businesses Performance as Moderating by Government Intervention, Conference Paper.
[29] Jafarnejad, A., Abbaszadeh, M. A., Ebrahimi, M. & Abtahi, S. M.(2013). “Analysis of barriers to entrepreneurship in Small and Medium-sized Enterprises (SMEs)”. International journal of academic research in economics and management sciences, 2(4), 207-216.
[30] Jack, A., Alagah, A. D. & Onuoha, B. C. (2017).Entrepreneurial attitude and organizational success of SMEs in Rivers State. International Journal of Advanced Research and Publications ISSN: 2456-9992.
[31] John J. E., Micheal, U. A., & Cassiu Ayam. O. (2017). Influence of Entrepreneurial Attitudes as a survival strategy for Small and Medium Enterprises: The Nigeria Experience. International Journal of Economics, Commerce and Management United Kingdom Vol.V, Issue 8, ISSN 2348 0386.
[32] Kabuoh, M. N., Ogbuanu, B.K., Chieze, A. I., & Adeoye, I. (2017). Entrepreneurial Culture and performance of small and medium enterprises (SMEs) in Nigeria. International Journal of Operational Research in Management, Social Sciences & Education ISSN Hard Print: 2536-6521 | ISSN Online: 2536-653X Vol. 3, No. 1.
[33] Katua, N.T.(2014). “The role of SMEs in employment Creation and Economic Growth in Selected Countries,” International Journal of Education and Research.2, no. 12: 246-272.
[34] Kayode, E. and Alfred O.(2014) : Determinant of Factors Influencing Capability of SME Employment Creation in Lagos State, Nigeria, International Journal of Financial Research, 5(2), 139.
[35] Kellermanns, F. W. & Eddleston, K. A. (2006). Corporate entrepreneurship in family firms: A family perspective. Entrepreneurship theory and practice, 30(6), 809-830.
[36] Kirby, A. D. (2003). Entrepreneurship. Maidenhead: MCGraw-Hill Education.
[37] Kreiser, P., Marino L., Kuratko, D. and Weaver, K.(2013): Disaggregating Entrepreneurship Orientation: The Non- Linear Impact of Innovation, Proactiveness and Risk- taking on SME Performance, Small Business Economics, 40(2), 273.
[38] Kristiansen, S., Kimeme, J. and Mbwambo A.(2005): “Cottage Industries in Tanzania: Can They Survive? “International Journal of Entrepreneurship and Innovation, 6(2), 99.
[39] Kohli A.J., & Jaworski, ‘Market Orientation(1990): The Construct, Research Propositions, and Managerial Implications. Journal of Marketing 5, 1-18.
[40] Kolvereid, L. and Isaksen, E (2006). “New business start-up and subsequent entry into self-employment,” Journal of Business Venturing, 21(6), 866- 85.
[41] Kuratko, D.F. and Audretsch, D.B.(2009) : “Strategic Entrepreneurship: Exploring Different Perspectives of an Emerging Concept”, Entrepreneurship: Theory and Practice, 33(1),5.
[42] Kuratko, D. F., & Hodgetts, R. M. (2001).Entrepreneurship: A contemporary Approach. Orlando FL: The Dryden Press: Harcourt Brace College Publisher.
[43] Kpelai, S.T. (2009). Entrepreneurship Development in Nigeria, Makurdi: Aboki Publishers.
[44] Kum, Siat., Kum, Lung., Choe, Siat., & Ching Loo. (2013). An Exploratory Study on the Relationship between Entrepreneurial Attitude and Firm Performance, Human Resource Management Research 3(1): 34-38.
[45] Lambart, S. and Davidson, R.(2013) : Application of the Business Model in Studies of Entrepreneurial Success, Innovation Classification, European Management Journal, 3160),672.
[46] Lazear, E. P. (2003): Entrepreneurship, IZA, Bonn. Entrepreneurship Theory and Practice, 41(6), 973-998.
[47] Liu, J. and Huang J.(2009) : “Research on international competitive advantage sustainability” International Journal of Business Management, 4(2),89- 92.
[48] Lofsten, H. (2014): “Product Innovation Process and the Trade- off between Product Innovation performance and Business Performance”, European Journal of Innovation Management, 17(10),.
[49] Lomberg, C., Urbig, D., Stöckmann, C. Marino, L. D. & Dickson, P. H. (2017) Entrepreneurial orientation: The dimensions’ shared effects in explaining enterprise performance.
[50] McClelland, DC. (2012).The achieving society, Princeton, Van Nostrand Reinhold, NJ USA. Michela, C. Masona, Josanco Floreani, Stefano Miania, Federico Beltrame,
[51] Roberto Cappelletto. Understanding the impact of entrepreneurial attitudes on Smes’ Performance. The role of the financing Structure. Procedia Economics and Finance 23 1649 – 1661.
[52] Morgeson F. V, and Petrescu C. (2011), “Do They All Perform Alike? An Examination of Perceived Performance, Citizen Satisfaction and Trust with US Federal Agencies.” International Review of Administrative Sciences, 77(3), 451-479.
[53] Muscio, A. & Ramaciotti, L. (2019). “How does academia influence Ph. D. entrepreneurship?” New insights on the entrepreneurial university. Technovation, 82, 16-24.
[54] Musthofa, Sugeng Wahyudi, Naili Farida, Ngatno. (2017), Effect of Entrepreneurial Attitudes on Business Performance. International Journal of Civil Engineering and Technology, 8(9), pp. 82–90.
[55] Mytelka, L.K. (June, 2000): “Local Systems of Innovation in a Globalized World Economy” Industry and Innovation, 7(1), 29.
[56] Narver J., and Slater S., (1990) ‘The Effect of a Market Orientation on Business Profitability, Journal of Marketing, 54, 20-35.
[57] Nwokah N.G., and Maclayton D.W, (2006). ‘Customer Focus and Business Performance; the study of Food and Beverages Organizations in Nigeria‖. Measuring Business Excellence Journey of organizational performance 65-76.
[58] [59] Nybakk, E., & Hansen, E (2008). “Entrepreneurial attitude, innovation and performance among Norwegian nature-based tourism enterprises,” Forest Policy and Economics, 10(7-8), 473-9.
[59] [60] OECD (2016): “Increasing Productivity in Small Traditional Enterprises: Program for Upgrading Management Skills and Practice”, OECD working Party on SME and Entrepreneurship, CFE/SME 6.
[60] [61] Olubiyi, T. O., Egwakhe, A.J., Amos, B., & Ajayi, A.A. (2019). Entrepreneurial attitudes and firm profitability: Evidence from Lagos State Nigeria. IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 21, Issue 6. Ser. II PP 42-54 www.iosrjournals.org.
[61] Ogunsiji, A.S.(2018) : “Strategic Management in Hand of an Excellent Manager Will Improve Productivity; But What Won’t: A Discourse”, International Journal of Socio- Economic Development and Strategic Studies, 1, 90.
[62] Omolara, E.A. (2018). Entrepreneurial skills and growth of Small and Medium. Ranasinghe,H. K. G. S., Yajid, M. S,. Yajid, A. A. Yajid, & Azam S. F. (2019. “Individual entrepreneurial orientation and graduate business performance of the university of Sri Jayewardenepura in Sri Lanka”. Journal of Management Marketing and Logistics, 6(1), 44-6.
[63] Robinson, P.B., Stimpson, D.V., Huefner, J.C., & Hunt, H.K. (1991) “An attitude approach to the prediction of entrepreneurship,” Entrepreneurship Theory and Practice, 15(4), 13-3
[64] Rauch, A., Wiklund, J., Lumpkin, G. T. & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship theory and practice, 33(3), 761787.
[65] Rodrigo-Alarcón, J., García-Villaverde, P. M., Ruiz-Ortega, M. J. & ParraRequena, G. (2018) From social capital to entrepreneurial orientation: The mediating role of dynamic capabilities. European Management Journal, 36(2), 195-209.
[66] Rotter, J.B. (1966). ‘Generalized expectancies for internal versus external control of reinforcements’, Psychological Monographs, vol. 80, no. 1, pp.1- 28.
[67] Sajilan, S. and Tohseen S.(2015): Cultural Orientation, Entrepreneurial Competencies and SME Success: The Contingent Roles of Environmental Turbulence, Review of Integrative Business and Economic Research, 4(2),26.
[68] Shane, M.( 2014): Africa’s Aborted Industrialization: Modernization Strategies Impeded Organic Industrialization Growth, Delhi, Arz Publications, 16-31.
[69] Schumpeter, J.A. (1983). The theory of economic development: an inquiry into profits, capital, credit, interest, and the business cycle, Transaction Publishers, New Brunswick, NJ USA.
[70] Serna, M. Martines J, and Martines V (2013): The Impact of Learning Orientation on Innovation and Performance in SME in Mexico, Journal IRMBR, 5(1), 50.
[71] Shane, S. & Venkataraman, S. (2014) The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217-226.
[72] Shah, S., Naza, T. Zaman, K. and Shabir M.(2016) : “Factors Affecting the Growth of Enterprises”, Journal of Transformation, 2013, 53-75.
[73] Shah, S., Naza, T., Zaman, K., and Shabir, M.(2013) : “Factors Affecting the Growth of Enterprises”, Journal of Transformation, 53-75.
[74] Shane, S. & Venkataraman, S. (2014) The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217-226.
[75] Shepherd, D., & DeTienne D. (2001). Discovery of opportunities: Anomalies, accumulation and alertness. Frontiers of Entrepreneurship Research, 2001, 138-148.
[76] SMEDAN ((2012). Survey report on micro, small and medium enterprises in Nigeria. Nigerian Bureau of statistics and small and medium enterprises development agency of Nigeria.
[77] Strauss, JP. (2005). ‘Multi-source perspectives of self-esteem, performance ratings, and source agreement’, Journal of Managerial Psychology, vol. 20, no. 6, pp. 464-82.
[78] Syed, H.H., Muzaffar, A., & Minaa F. (2017). Entrepreneurial attitudes and business performance of manufacturing sector small and medium scale enterprises of Punjab Pakistan. European Business & Management. Vol. 3, No. 2, pp. 21-28. doi: 10.11648/j.ebm.20170302.12.
[79] Taro Yamane. (1993) Mathematics for Economists, India. Prentice Hall.Tazeen Imran, Rizwan Raheem Ahmed, Dalia Streimikiene , Riaz Hussain Soomro and Vishnu [81] Parmar and Jolita Vveinhardt. (2019). Assessment of Entrepreneurial Traits and Small-Firm Performance with Entrepreneurial Attitutdes as a Mediating Factor. Sustainability 11, 5301; doi:10.3390/su11195301.
[80] Tobora, O. O. (2015). Entrepreneurial attitudes: A Remedy for Receding Productivity of Small and Medium scale Enterprise a Nigeria perspective. International Letters of Social and Humanistic Sciences, 47, 77-97.
[81] Uhlerner, L., Stel van, Duplat, A.V. and Zhou, H. (2013): “Disentangling the Effects of Organizational Capabilities, Innovation and Firm Size on SME Growth”, Small Business Economics, 41(1), 583.
[82] Uzairu M., & Noor A. (2017). Entrepreneurial Attitudes: SMEs Performance Factor in the Challenging Nigerian Economy. Academic Journal of Economic Studies Vol. 3, No. 4, pp. 55–61.
[83] Wales, W. J. (2016.). Entrepreneurial orientation: A review and synthesis of promising research directions. International Small Business Journal, 34(1), 3-15.
[84] Walker, G.(2006) : Modern competitive strategy, Beijing: People’s University of China Publishing Company.
[85] Webb, J. W., Ketchen Jr, D. J. & Ireland, R. D.(2010). Strategic entrepreneurship within family- controlled firms: Opportunities and challenges. Journal of family business strategy, 1(2), 67-77.
[86] Wiklund, J. & Shepherd D. (2003a) “Aspiring for, and achieving growth: The moderating role of resources and opportunities,” Journal of Management Studies, 40(8), 1919-41.
[87] Wilson N.O. (2012). Entrepreneurial attitudes effects on business performance of small and medium enterprises in information technology sector in Nairobi. A Thesis submitted Jomo Kenyatta University of Agriculture and Technology.
[88] Yang, Y. (2015): “Entrepreneurial Heterogeneity and Firm Performance: An analysis based on SMEs in China” Techno economics and Management Research,44-48.
[89] Yang, Y. (2014) : “Entrepreneur Ability, Innovation Competency and Enterprise Performance”, Academic Exploration, 38-142.
[90] Yazeed, M. (2016). Effect of entrepreneurial attitudes on the performance of Small and Medium Scale Enterprises in Kaduna state.

Keywords:

Entrepreneurship; Personality inclination; Emotional Flexibility; Opportunity Recognition; Personal perception; SME performance.