Entrepreneurial skills and profitability in Lagos's small and medium scale enterprise a mainland area study

Falobi, Oluwole Victor

Abstract

The study assessed the skills and profitability ratios of entrepreneurs within small and medium-scale enterprises (SMEs) in the Mainland Local Government Area of Lagos State, employing a descriptive survey research design. Addressing three research questions and testing two hypotheses, it involved 1200 SME owners, from which a sample size of 120 (10%) was selected using a simple random sampling technique. Data were collected through a structured questionnaire titled "Small and Medium Enterprise Assessment Skills Scale" and analyzed using simple percentages, mean, standard deviation, and Pearson's product moment correlation coefficient. The findings revealed significant relationships between both technical skills and business management skills with the profitability ratios of SMEs, among other insights. Consequently, the study concludes that entrepreneurial skills are essential for SMEs to thrive and become viable in Nigeria, recommending that SME owners should prioritize personal development to enhance their entrepreneurial skills. Keywords: Business management; Entrepreneur; Profitability; Skills

References

Abdullahi, I. I., & Sulaiman, C. (2015). The determinants of small and medium-sized enterprises performance in Nigeria. Advances in Economics and Business, 3(5), 184-189

Abeh, O. (2017). The problems and prospects of small and medium scale enterprises (SMEs) growth and development in Nigeria: A study of selected SMEs in Delta State. International Journal of Scientific Research in Education, 10(3), 278-294.

Arin, K. P., Huang, V. Z., Minniti, M., Nandialath, A. M., & Reich, O. F. (2015). Revisiting the determinants of entrepreneurship: A Bayesian approach. Journal of Management, 41(2), 607-631.

Balogun, O. A., Agumba, N. J., & Ansary, N. (2018). Determinants of business overdraft accessibility within small and medium-sized enterprises in the South African construction industry: A case of Gauteng province. In Proceedings of the 21st International Symposium on Advancement of Construction Management and Real Estate (pp. 617-628). Springer Singapore.

Bolton, D. L., & Lane, M. D. (2012). Individual entrepreneurial orientation: Development of a measurement instrument. Education+ training, 54(2/3), 219-233.

Dimoji F. A., and Onwuneme L. N. (2016). Small and medium scale enterprises and sustainable economic development. Mediterranean Journal of Social, 5(7), 656-662.

Henry, C., Hill, F., & Leitch, C. (2005). Entrepreneurship educational and training: can entrepreneurship be taught? Education + Training, 47(3), 158-169.

Martin, B. C., McNally, J.J., and Kay, M. J. (2013). Examining the formation of human capital entrepreneurship: A personal-analysis of entrepreneurship education outcomes. Journal of Business Venturing, 28(2), 211-224.

Martin, C. (2015). Needs and perspectives of entrepreneurship education for postgraduate students. A Romanian case study. Journal Plus Education, 153-157.

Mata, B. A. K., & Aliyu, M. S. (2014). The relationship between some determinants of SME performance in Nigeria: A qualitative approach. European Journal of Business and Management, 6(2), 107-114.

Olowu, M. D., and Aliyu, I. (2015). Impact of managerial skills on small scale businesses performance and growth in Nigeria. European Journal of Business and Management, 7(5), 1-7.

Rasak, B. (2012). Small and medium scale enterprises (SMEs): A panacea for economic growth in Nigeria. Journal of Management and Corporate Governance, 4(6), 86-98.

Rogoff, E. G., Lee, M. S., and Suh, D. C. (2004). Who done it? Attributions by entrepreneurs and experts of the factors that cause and impede small business success. Journal of Small Business Management, 42(4), 364-376.

Thompson, J. D., & MacMillan, I. C. (2010). Making Social: Ventures Work. Harvard Business Review, 88(9), 66-73.