Effect of Entrepreneurial Competencies on Performance of Small and Medium Scale Enterprises in Yobe State, Nigeria

Abstract

Small and Medium Scale Enterprises (SMEs) in Nigeria face significant challenges that hinder their performance, contributing to rising unemployment and poverty rates. This study investigates the role of entrepreneurial competencies in enhancing SME performance in Yobe State, Nigeria. Drawing on human capital theory, the research examines the relationships between risk-taking and networking competencies and SME performance. Data were collected through a cross-sectional survey of 230 SME owners/managers, with descriptive statistics and regression analysis used for analysis. The findings reveal that both risk-taking and networking competencies positively influence SME performance. Specifically, moderate risk-taking fosters innovation and growth opportunities, while effective networking enhances access to resources and support. Based on these results, recommendations are made for entrepreneurs to focus on developing these competencies, supported by entrepreneurial training programs and policy interventions aimed at fostering networking opportunities. By addressing these challenges, stakeholders can contribute to the growth and success of SMEs in Nigeria.