ENTREPRENEURIAL COMPETENCE AND BUSINESS SURVIVAL:A STUDY OF SELECTED SMES IN IKORODU, LAGOS STATE, NIGERIA

Abstract

The study captured entrepreneurial competency and business survival of SMEs in Lagos state. The population of this research consist of 426 owners and employees of 45 chosen small and medium scale enterprises at Ikorodu axis of Lagos state. The sample that was used in this research comprised 206 employees’ and owners of SMEs. The study employed stratified sampling technique. Validated likert scale questionnaire was used as instrument for the study. To establish the reliability of the instrument, a test-retest technique was employed. Descriptive statistics and multiple regression analysis was engaged to analyse the data collected for the study. Findings showed that strategic planning competency (ß = 0.353, P<0.05), opportunity recognition competency (ß = 0.336, P<0.05), and financial literacy (ß = 0.218, P<0.05) has positive effect on business survival. The study revealed that entrepreneurial competency had significant positive effect on business survival of SMEs. Strategic planning competency, opportunity recognition competency and financial literacy had significant positive relationship with business survival of SMEs. The study recommended amongst others that firms should set clear and measurable long-term and short-term goals for their business by ensuring that these goals align with the overall strategic vision.