MSMES’ SUSTAINABLE PERFORMANCE IN LAGOS STATE, NIGERIA: THE ROLE OF GREEN ENTREPRENEURSHIP PRACTICES

Abstract

Growing environmental concerns have intensified interest in adopting green entrepreneurship practices to enhance the sustainable performance of MSMEs. This development underscores the need for the present study to examine the role of green entrepreneurship practices in promoting the sustainable performance of MSMEs in Lagos State, Nigeria. The study specifically determined the extent to which four green entrepreneurship practices impact the sustainable performance of MSMEs.

The study adopted a cross-sectional survey design involving 108 respondents from a sample of 120 MSMEs in Lagos State, Nigeria, within a population of over 3.2 million microenterprises. Respondents were selected using a simple random sampling technique based on the lottery method. Primary data were collected through a structured questionnaire administered to MSME owners via Google Forms. Structural equation modelling (SEM) was employed for data analysis.

The findings reveal that process innovation (β = 0.138, p < 0.05), managerial innovation (β = 0.222, p < 0.05), and green business opportunities (β = 0.317, p < 0.05) have significant positive relationships with the sustainable performance of MSMEs. Conversely, product innovation (β = 0.013, p > 0.05) was found to have no significant relationship with the sustainable performance of these enterprises.

The study concludes that green entrepreneurship practices are critical to the attainment of sustainable performance among MSMEs, and it provides valuable insights for MSME operators and other relevant stakeholders in Lagos State and across Nigeria.