EFFECTS OF ENTREPRENEURIAL MINDSET AND ENTREPRENEURIAL COMPETENCE, ON MICRO, SMALL AND MEDIUM ENTREPRISES (MSMEs) PERFORMANCE IN NIGERIA

Abstract

Micro, small and medium enterprises (MSMEs) globally are recognized for the strategic and
impactful contribution they make as stimulus for the industrialization of national economies.
However, there are growing concerns about the MSMEs poor performance in Nigeria. Hence
this study is design to investigate the effects of entrepreneurial mindset (EM) and
entrepreneurial competence (EC), on MSME performance in Nigeria. A cross-sectional
research design was employed, and data were collected from 500 respondents, representing
owner/managers of MSMEs in Kebbi State. The data were analyzed using Partial Least
Squares Structural Equation Modeling (PLS-SEM) version 4. The results indicated that both
entrepreneurial mindset and entrepreneurial competence have positive and significant impact
on MSME performance. In conclusion, this study recommended that the management of
SMEDAN, along with government and policymakers, should develop and implement targeted
training programs and workshops focused on key entrepreneurial skills such as financial
management, strategic planning, and operational efficiency. Local governments, business
associations, and educational institutions should collaborate to create educational resources
and opportunities that cater specifically to the needs of MSMEs in Kebbi State. Additionally,
the study suggested that Future research could explore the impact of contextual factors, such
as regional economic conditions and industry-specific challenges, on the relationship
between entrepreneurial variables and MSME performance. Investigating how external
factors like market dynamics, infrastructure quality, and local regulatory environments
influence these relationships. This could provide deeper insights into the varying effects of
entrepreneurial mindset and entrepreneurial competence.