ENTREPRENEURIAL STRATEGIES AND THE DEVELOPMENT OF SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN OGUN STATE, NIGERIA
The development of SMEs has become an important factor in nation’s building and economic development. While developed nations have leveraged on the growth of SMEs, survival rates has been less than 10% in Nigeria despite various government intervention programmes. This study evaluated the effect of entrepreneurial strategies on the development of SMEs on selected firms in Ogun state Nigeria.
Survey research design was adopted for the study. The population of the study consist of 2425 middle and top level staff of 7 selected firms. Stratified random sampling technique was adopted to select the sample size of 446. Respondents were determined using Taro Yamane formula for sample size. Data was collected using self-administered structured questionnaire and validated for a response rate of 94%. Cronbach Alpha reliability for major constructs had an average value of 0.83. The data collected was analysed using linear and multiple regression.
Findings revealed that there is a significant relationship between entrepreneurial strategies and SME development (R = 0.535, at p<0.05).The adjusted R2=.285 value (alpha) of 44.670, the coefficient of independent variable (beta = 0.491) and F-Value yielded 163.890. Competitive strategy had significant relationship on return on investment and this effect was statistically significant at (R2 = 0.160, p < 0.05, B = 0.360, F = 77.727). There is a significant relationship between human resource strategy and employee productivity (R2 = 0.184, p < 0.05, B = 0.385, F = 91.833). The effect of market orientation strategy on market share shows a positive relationship with p < 0.05, R2 = 0.242, B = 0.395 and F = 130.155. A positive and significant relationship was established between adaptation strategy and business policy with R2 = 0.553, p < 0.05, B = 0.717 and F value = 504.339.
The study concluded that, entrepreneurial strategies have strong positive relationship on the development of SMEs in Ogun State. The study recommends that SMEs should adopt entrepreneurial strategies in the form of competitive, human resource, market orientation and adaptation to increase survival rate.
Keywords: Entrepreneurial strategies, Competitive strategy, Positive relationship, Effect and SMEs development.