ENTREPRENEURIAL PROACTIVENESS AND ITS EFFECT ON SMALL AND MEDIUM ENTERPRISES' PERFORMANCE: EVIDENCE FROM EMERGING ECONOMIES USING PLS-SEM

Abstract

1

Daniel Oluwaseun OYALAKUN, 1Abolaji Joachim ABIODUN

1

Department of Business Administration, College of Entrepreneurial and Development Studies

Federal University of Agriculture, Abeokuta, Ogun State, Nigeria

oyalakundo@funaab.edu.ng, abiodunaj@funaab.edu.ng

2

Emmanuel Olusola OJO, 2Ademola Samuel SAJUYIGBE

2

Department of Business Administration,

Faculty of Management Science, Osun State University, Osogbo, Osun State, Nigeria

olu.ojo@uniosun.edu.ng, sajuyigbeademola@yahoo.com

Samuel Olufemi OMOYELE

Department of Entrepreneurial Studies,

Faculty of Management Science, Osun State University, Osogbo, Osun State, Nigeria

olufemi.omoyele@uniosun.edu.ng

Comfort Inioluwa OYALAKUN

Department of Accounting, Faculty of Management Science,

Osun State University, Osogbo, Osun State, Nigeria

comfortoyalakun@gmail.com

Abstract

Entrepreneurial proactiveness plays a key role as a factor influencing the performance of small and medium

enterprises (SMEs), especially in emerging economies characterised by a changing business environment. This study

examines the impact of entrepreneurial proactiveness on the performance of SMEs. The specific objectives of the

study are to determine the effects of initiative-taking, anticipating challenges and threats, and learning and

adaptation on the performance of SMEs. A survey research design was adopted, considering a cross-sectional

approach, using a purposeful sample technique to derive the sample size of two hundred and eighty-four (284) from

the estimated working population of two thousand and fifty-six (2,056) SMEs operating in Computer Village, Ikeja,

Lagos State, Nigeria which is the largest ICT markets in West Africa, hosting a large cluster of technology business.

A well-structured questionnaire was used, and the collected data were analysed using Partial Least Squares

Structural Equation Modelling (PLS-SEM) with algorithmic estimation and bootstrapping to assess both the

measurement and structural models. The study finds that entrepreneurial proactiveness has significant effects on

SMEs' performance. The study recommends that SME owners and their managers should pay more attention to

initiative-taking, anticipating challenges and threats, and learning and adaptation in the business operations to

achieve sustainable SME performance. This study demonstrates and concluded that entrepreneurial proactiveness

has a major impact on SMEs' performance.