Entrepreneurial Orientation and Small and Medium Enterprises Competitive Advantange in Lagos State


  • Famodun Olubunmi Temitayo Lagos State University


Competitive Advantage, Entrepreneurial Orientation, Innovativeness, Pro-activeness, Small and Medium Scale Enterprises


There have been inconsistencies in the findings of academic researchers on entrepreneurial orientation and SMEs competitive advantage, which has demanded a further study.  The issue of inadequate access to finance, poor infrastructure, inconsistency with government policy, poor support (business development work), inadequate sales, too many taxes and obsolete technologies leading to massive failures of SMEs and its effect on the epileptic growth of SMEs in Lagos state, but also due to the problem from entrepreneurial orientation. The survey research design was employed in this study and the study relied on primary data. The targeted population of this study is 1,511 SMEs (wholesalers and retailers only), which were drawn from Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in Lagos state. A snowballing sampling technique was used to choose 316 participant SMEs to which the questionnaires were administered, of which 243 questionnaires were returned. The hypotheses of the study were analyzed using multiple regression analysis. The results showed that pro-activeness, innovativeness, and risk-taking significantly improve the performance of SMEs in Lagos state. The study came to the conclusion that innovative, entrepreneurial-oriented businesses are more likely to lead their industry in innovations and carry out tasks in a way that better serves clients and increases the firm's power. In order to improve the performance of their companies, the study recommended that SMEs' owners and managers to be dedicated to process and radical innovation in their interactions.


Adamu, A. A., Wan, C. Y., &Gorondutse, A. H. (2019). Determinants of sustainable performance of SMEs: A Proposed framework. International Journal of Research and Scientific Innovation, 6(6), 182 – 188.

Adekunle, O.J & Owolabi, B.I (2022), Impact of Resources Based View Theory on Entrepreneurship in Nigeria, African Journal of Business Development and Management Resources, 25(7)

Baker W.E & Sinkula J.M (2019). The Complementary Effects of Market Orientation on Profitability in Small Businesses. Journal of Small Business Management

Biernacki, P., & Waldorf, D. (1981). Snowball sampling: Problems and techniques of chain referral sampling. Sociological Methods & Research, 10(2), 141-163.

Birech, K. F., Karoney, L. C. & Alang’o O. G. (2018). Relationship between entrepreneurial orientation and performance of small and medium women owned enterprises in Uasin Gishu County, Kenya. International Journal of Small Business and Entrepreneurship Research, 6(1), 57 – 79.

Butkouskaya, V., Lionch-Andreu, J & Alarcon-Del-Amo, M. (2020). Entrepreneurial orientation (EO), integrated marketing communications (IMC), and performance in Small and Medium-Sized Enterprises (SMEs): Gender gap and inter-country context. Sustainability; doi: 10.3390/su12177159 www.mdpi.com/journal/sustainability12(7159) 2 – 18.

Ciemleja G., & Lace, N. (2011). The model of sustainable performance of small and medium-sized enterprise. Inzinerine Ekonomika-Engineering Economics, 22(5), 501-509.

Dansu, F. (2013). SMEs, business risk and sustainability in Nigeria. European Journal of Business and Social Sciences, 2(9), 76-94. http://www.ejbss.com/recent.aspx.

Gupta, V & Nirajan (2020). The Impact of Entrepreneurial Orientation on Firm Performance of the Telecommunication Sector in Sudan. African Journal of Business Management, 14(5).

Ibrahim, M.A, Abbas, U.I (2020). Influence on Entrepreneurial Orientation on firms performance: evidence from small and medium enterprises in Nigeria.

Ilesanmi, O.A, Onikoyi, I.Am & Badiru, N.I (2022), Entrepreneurial orientation and small and medium enterprises (SMEs) performance in Lagos State, Nigeria. The journal of Accounting and Management, 12(1), 65 – 75.

Kraus, S., Rigtering, J. P C., Hughes, M., & Hosman V. (2012). Entrepreneurial orientation and the business performance of SMEs: a quantitative study from the Netherlands. JEL Classification 25(26) 161 – 182.

Mankgele, K. P. & Fatoki O. (2020). Strategic orientation and performance of small business in South Africa. Journal of Reviews on Global Economics, 9, 459 – 467.

Miller, D. (1983). The Correlates of Entrepreneurship in Three Types of Firms. , 29, 770–791.

National Bureau of Statistics report (2019), “National survey of micro small & medium enterprises (MSMEs) 2017”, available at: https://nigerianstat.gov.ng/elibrary

Okoli N, I. E., Nwosu, K. C. & Okechukwu M. E. (2021). Entrepreneurial orientation and performance of selected SMEs in Southeast, Nigeria. European Journal of Business and Management Research, 6(4), 108 – 115.

Olowofeso E. (2021). The effect of entrepreneurial orientation on competitive advantages of selected SMEs’ in Lagos, Nigeria. Journal of Economics and Sustainable Development, 12(22), 48 – 55.

Porter, M. (1980), Competitive Advantage: Creating and Sustaining Competitive Performance, New York: Free Press.

Runtuk, J. K., Ng, P. K., Ooi, S. Y., Purwanto, R., Chairat, A. S. N., & Ng, Y. J. (2023). Sustainable growth for small and medium-sized enterprises: interpretive structural modeling approach. Sustainability, 15(4555). (2–12)https://doi.org/10.3390/su15054555 https://www.mdpi.com/journal/sustainability.

Shodiya, O.A (2021) Knowledge Management and Competitive Advantage of Listed Consumer Goods Manufacturing Companies in Nigeria. 11(2). doi 10.5195/emaj.2021.237

SMEDAN, (2021). SMEDAN and National Bureau of Statistics collaborative survey: Selected findings. Abuja: Small and Medium Enterprises Development Agency of Nigeria

Tsenyil, C.Y., Dakung, R.J., & Goyit, M.G. (2018) Competitive Advantage of Small and Medium Enterprises in Nigeria: The Predicting Role of Innovative Service Delivery. European Journal of Business and management, 10 (17).

Zaato, S. G., Ismail, M., Uthamaputhran S., & Owusu-Ansah W. (2020). The impact of entrepreneurial orientation on SMEs performance in Ghana: The role of social capital and government support policies. Journal Manajemen Dan Kewirausahaan, 22(2), 99 – 114.




How to Cite

AKINGBADE, W. A., & Famodun, O. T. . (2024). Entrepreneurial Orientation and Small and Medium Enterprises Competitive Advantange in Lagos State. Acta Universitatis Danubius. Œconomica, 20(1), 228–251. Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/2676



Entrepreneurial Perspectives