Strategic management practices and entrepreneurial orientation among small and medium scale enterprises in Osun state, Nigeria

Abstract

The study examined the effect of strategic management practices on entrepreneurial orientation using selected SMEs in the Osun States, Nigeria. The research design used was a survey research design. The study population was 2273 SMEs in Osun State registered with SMEDAN, and samples of 400 SMEs were selected from the state using simple and stratified random sampling techniques. The research instrument used was a questionnaire. This instrument was validated and revealed a reliability coefficient value of 0.7 through the crombach reliability statistics. The Pearson product-moment correlation statistic was used to determine the degree of relationship that exists between strategic management practices and entrepreneurial orientation among the SMEs in Osun State, Nigeria. Hypotheses were tested at 0.05 significance level (α = 0.05). The findings revealed that both the proactiveness and risk-taking model shows that most of the SMEs in the state appeared to be risk-averse and the owners are not proactive. This might be why there are more fledgling SMEs in the State. The study concluded that strategic management practices significantly affect entrepreneurial orientation among SMEs in Osun State. Therefore, it is recommended that to improve entrepreneurial orientation among SMEs; there should be an improvement in proactiveness and risk-taking to enlightening the entrepreneurs. SMEs, in their orientation, should carefully give the risk-taking attribute a chance as this will enhance the reproduction of their businesses.