Entrepreneurial risk taking and performance of small and medium scale enterprises (SMEs) in Kano State, Nigeria
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Date
2018
Journal Title
Journal ISSN
Volume Title
Publisher
KIU Journal of Social Sciences
Abstract
Risk taking is a dominant
attribute of entrepreneurial activities, as the
higher the risk-taking orientation, the higher
a firm‟s profitability and growth. The main
purpose of this study was to establish the
effect of entrepreneurial risk taking on
performance of small and medium scale
enterprises (SMEs) in Kano State, Nigeria.
Data for the study was obtained through
questionnaire and interview from 393
owners, managers and staff of SMEs in
Kano state, Nigeria, on a cross sectional
research design. Results using Pearson linear
correlation and regression analysis have a
positive significant relationship between
entrepreneurial risk taking and performance
of SMEs. Entrepreneurial risk taking has a
positive impact on performance of SMEs in
Kano State, Nigeria. Entrepreneurial risk
taking had a significant effect (F – statistic =
35.959; t – statistic = 5.997) P= 0.001. The
study adds value to the growing body of
knowledge in the field of entrepreneurial
development activities. The study
recommends that operators should always
identify and assess the trends of the
opportunities impending before taking risk
not just dare risk, this will help to address
the rate at which SMEs managers, owners
and staff take risk, so that risk taking will
relate and significantly influence their
performance. The study serves as a
reference to anyone who is interested in
establishing his personal business as it
provides insight into the importance of
entrepreneurial risk taking in starting a
business and also for any organization that is
interested in achieving profitability or
continue sustaining effective business
venture.
Description
Keywords
Entrepreneurial risk taking, Small and medium scale enterprises (SMEs), Performance of SMEs
Citation
Egele, A. C., Muhammad, K., & Mutenyo, J. (2018). Entrepreneurial risk taking and performance of small and medium scale enterprises (SMEs) in Kano State, Nigeria. KIU Journal of Social Sciences, 4(3), 213-224.