Entrepreneurial orientation and financial performance among MSMEs in Nigeria

This paper examines the influence of entrepreneurial orientation (EO) on firm’s financial performance among micro, small and medium enterprises in a developing country. Data for the study were collected from 242 owners of micro, small and medium enterprises through a cross-sectional survey conducted in 2019. The result of the correlation analysis shows that all the variables measuring EO (innovativeness, risk taking, proactiveness, and competitiveness) are positively related to firm’s performance except ‘autonomy’. The logistic regression results reveal that innovativeness and risk taking potentials are more likely to influence firm’s financial performance. The LR statistic shows that all the EO variables jointly influence firm’s performance. The study concludes that a concerted effort should be made by the MSMEs to continuously take actions that could strengthen their EO in order to build competitive advantage that would make them resilient in any dynamic and uncertain environment, as this would positively influence their financial performance.