Perceived Influence Of Entrepreneurship Skills On The Sales Performance Of Small And Medium Scale Businesses In Kwara State

Perceived Influence Of Entrepreneurship Skills On The Sales Performance Of Small And Medium Scale Businesses In Kwara State
Abstract
This study was carried out to examine the perceived influence of entrepreneurship skills on the sales performance of small and medium scale businesses in Kwara State. Specifically the study was set to determine the entrepreneurship skills required for the adequate performance of small and medium scale businesses in Kwara State, find out whether there is a significant statistical relationship between entrepreneurship skills and the sales performance of small and medium scale businesses in Kwara State, ascertain whether entrepreneurship skills influences the customer growth of small and medium scale businesses in Kwara State, and ascertain whether entrepreneurship skills influences the sales volume growth of small and medium scale businesses in Kwara State. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprised of staff of small and medium scale businesses in Kwara State. In determining the sample size, the researcher purposefully selected 147 respondents and 141 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables, and mean scores. While the hypotheses was tested Pearson correlation-square statistical tool, SPSS v23. The result of the findings reveals that the entrepreneurship skills required for the adequate performance of small and medium scale businesses in Kwara State includes: technical skills, managerial skill, marketing skills, leadership skills, and entrepreneurial personal skills. Furthermore, the study revealed that entrepreneurship skills influence the sales volume growth of small and medium scale businesses in Kwara State. Therefore, it is recommended that young entrepreneurs should be trained in gathering and processing market information that is relevant to their businesses. Sponsoring agents and financial institutions should provide means of enhancing capital investments of SMEs in the district. To mention but a few.
Table of Content
- Title Page
- Certification
- Dedication
- Acknowledgement
- Table of Content
- List of Tables
- Abstract
Chapter One:
Introduction
- 1.1 Background of the Study
- 1.2 Statement of the Problem
- 1.3 Objective of the Study
- 1.4 Research Questions
- 1.5 Research Hypothesis
- 1.6 Significance of the Study
- 1.7 Scope of the Study
- 1.8 Limitation of the Study
- 1.9 Definition of Terms
- 1.10 Organisations of the Study
Chapter Two:
Review of Literature
- 2.1 Conceptual Framework
- 2.2 Theoretical Framework
- 2.3 Empirical Review
Chapter Three:
Research Methodology
- 3.1 Research Design
- 3.2 Population of the Study
- 3.3 Sample Size Determination
- 3.4 Sample Size Selection Technique and Procedure
- 3.5 Research Instrument and Administration
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Validity of the Study
- 3.9 Reliability of the Study
- 3.10 Ethical Consideration
Chapter Four:
Data Presentation and Analysis
- 4.1 Data Presentation
- 4.2 Analysis of Data
- 4.3 Answering Research Questions
- 4.4 Test of Hypotheses
Chapter Five:
Summary, Conclusion and Recommendation
- 5.1 Summary
- 5.2 Conclusion
- 5.3 Recommendation
- References
- APPENDIX
- QUESTIONNAIRE
Chapter One
Introduction
1.1 Background of the Study
Small and Medium Enterprises (SMEs) are important to economic growth and significantly essential to generate profit, increase sales and provide return on investment to the owners of SMEs. In developing countries, the primary barrier to economic growth is often not so much with a scarcity of capital, labor or land, but it is the scarcity of the dynamic entrepreneurs that can bring the markets and mechanisms that can facilitate the economic growth (United Nations Development Program, 1999). Entrepreneurial activity is the key to growth and prosperity in many countries. Entrepreneurship development is the key factor in economic development (Harper, 2003).
Entrepreneurship has been considered as the backbone of economic development. It has been well established that the level of economic growth of a region to a large extent, depends on the level of entrepreneurial activities in the region. The myth that entrepreneurs are born, no more holds good, rather it is well recognized now that the entrepreneurs can be created and nurtured through appropriate interventions in the form of entrepreneurship development programs (India Entrepreneurship Movement 2008).
Operational efficiency and business excellence of owners of small and medium enterprises (SMEs) are very important for the sales growth and general sustenance of such business (Jaeger, Matyas & Sihn, 2014). Islam, Khan, Obaidullah & Alam (2011), contended that entrepreneur characteristics are a significant factor that determines SMEs success in Nigeria. Small and medium scale enterprises in all economies are very important to national economic growth and considerably contribute to industrial development hence researches are being carried out on how to improve their performance. In a developing economy like Nigeria, what account for largest share of employment and output are the SMEs (UNECE, 2003). According to SMEDAN (2009), SMEs play tremendous role in reengineering the socio economic landscape in Nigeria and they largely represent a stage in industrial transition from traditional to modern technology. SMEs are vital in developing the Nigerian economy for social and political role in local employment generation, balanced resources utilization, income generation, utilization of local technology. (Babatope & Akintunde, 2010).
Entrepreneurship is not an easy vocation, and it does not always guarantee a 100% success. There are several critical factors that must be in place to enable entrepreneurs achieve a measure of success. The kind of economic policies that have been followed in many African countries especially in Nigeria in the two to three decades after political independence have not always been conducive to small scale enterprise in Nigeria.
A firm’s competitive advantage stems from its entrepreneurial capabilities, management abilities and technical know-how and its adaptability to the internal and external business environment. Basic education and continuing investment in on-the-job, for developing entrepreneurial skills is therefore important. Entrepreneurship skills are very important to the survival and growth of SMEs. Specifically, they promote the sales performance of SMEs. Entrepreneurial development has been conceived by successive governments as a program of activities to enhance the knowledge, skill, behavior and attitudes of individual and groups to assume the role of entrepreneurs.
Skill is knowledge demonstrated by actions or the ability to perform in a certain way. Skills are acquired through training and education (Perks & Smith, 2006). Education and training create circumstances in which a person can acquire and apply the skill that will help him/her achieve the objective of the business. Skills development can be achieved through training and education (Erasmus, 2005). The difference between education and training is that education prepares the individual for life while training prepares him or her to perform specific tasks. In this study, the focus was on skills development through training. Landzani (2004) argues that changing circumstances require that small business managers/owners receive regular training in order to reduce failure rates, increase profits and achieve growth. This is necessary because most small business owners start their businesses without appropriate training.
Many SMEs in Nigeria experiences poor sales performance from lack of technical and business skills. SMEs themselves identify a variety of skills gaps in areas including ICT, technical and industrial knowledge, finance, accounting and management. There is also limited innovation and competitiveness in the SME sector caused by a lack of technical and managerial skill. The unstructured environment in which SMEs operate and their inability to be open to new or innovative ideas presents a major challenge to the development of the SME sector (Ministry of Finance and Economic Planning, 2010). Apparently, previous researches carried out on this related topics focused more on the over performance of SMEs in Nigeria. However, the present study will be investigating the influence of entrepreneurship skills on the performance of small and medium scale businesses, with specific emphasis on sales performance.
1.2 Statement of the Problem
In spite of the significant contribution of SMEs to the national economy, many problems and constraints still exists in promoting their sale growth and general development. For instance, an International Labour Organization (1994) study shows that inadequate technical entrepreneurial talent particularly affects the effectiveness of small scale manufacturing and processing industries. While a large scale business can be established with expatriate capital, small scale businesses need to have a domestic entrepreneurial and industrial base. Another obstacle affecting the performance of small scale businesses in Nigeria is the shortage and inadequate entrepreneurial skills of operators and the absence of an effective management technique which significantly influences their sales performance.
According to Global Entrepreneurial Monitor (2012), Nigeria is a world leader in entrepreneurial spirit, and they believe they have necessary skills and knowledge. However, despite this report, the amount of failed SME has not reduced in recent years. And this case scenario have been pinned on poor sales performance among other significant factors of concern. Coric, Katavic, and Kopecki,(2014), claims that the desired sales growth of SMEs depends on the connection of crucial entrepreneurial skills for starting businesses, as well as the survival and development in their early years. However, such study is still missing in Nigeria context to the best of the researcher knowledge.
Additionally, the research of Undiayaundeye (2015) identified lack of entrepreneurial skills among graduates and thus, degenerate to failed entrepreneurial journey of business owners. As a result of the above discussions, this study, therefore, intends to examine the perceived influence of entrepreneurship skills on the sales performance of small and medium scale businesses .
1.3 Objectives of the Study
The overall aim of this study is to examine the perceived influence of entrepreneurship skills on the sales performance of small and medium scale businesses in Kwara State. Hence, the study will be channeled to the following specific objectives;
- Determine the entrepreneurship skills required for the adequate performance of small and medium scale businesses in Kwara State.
- Find out whether there is a significant statistical relationship between entrepreneurship skills and the sales performance of small and medium scale businesses in Kwara State.
- Ascertain whether entrepreneurship skills influences the customer growth of small and medium scale businesses in Kwara State.
- Ascertain whether entrepreneurship skills influences the sales volume growth of small and medium scale businesses in Kwara State.
1.4 Research Questions
The study will be guided by the following questions;
- What are the entrepreneurship skills required for the adequate performance of small and medium scale businesses in Kwara State?
- Is there a significant statistical relationship between entrepreneurship skills and the sales performance of small and medium scale businesses in Kwara State?
- Does entrepreneurship skills contribute the customer growth of small and medium scale businesses in Kwara State?
- Does entrepreneurship skills influence the sales volume growth of small and medium scale businesses in Kwara State?
1.5 Research Hypothesis
- Ho: There is no statistically significant relationship between entrepreneurship skills and the sales performance of small and medium scale businesses.
- Ha: There is a statistically significant relationship between entrepreneurship skills and the sales performance of small and medium scale businesses.
1.6 Significance of the Study
The growth and development of small and medium enterprises (SMEs) has been a focus for policy makers and researchers in the developed and developing countries. This study will be key in giving direction to how business owners can improve their entrepreneurial skills for better performance.
1.7 Scope of the Study
The scope of this study boarders on perceived influence of entrepreneurship skills on the sales performance of small and medium scale businesses in Kwara State. The respondents for this study will be obtained from selected small and medium scale businesses in Kwara State.
1.8 Limitation of the Study
Like in every human endeavour, the researcher encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. More so, the researcher simultaneously engaged in this study with other academic work. As a result, the amount of time spent on research will be reduced.
Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgment of issues. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges.
1.9 Definition of Terms
Entrepreneurship:
Entrepreneurship is mainly the creation or extraction of value, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values than simply economic ones. An entrepreneur creates a new business, bearing most of the risks and enjoying most of the rewards. The two main functions of entrepreneurs are first, taking the risk of developing new products or services and, secondly successfully bringing new products and services into marketplace.
Entrepreneurship Skills:
Specialized technical knowledge that entrepreneurs should possess in order to perform their roles and these skills are acquired through learning and experience.
1.10 Organization of the Study
This research work is organized in five chapters, for easy understanding, as follows.
- Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
- Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
- Chapter three deals on the research design and methodology adopted in the study.
- Chapter four concentrate on the data collection and analysis and presentation of finding.
- Chapter five gives summary, conclusion, and recommendations made of the study.
Chapter Five
Summary, Conclusions and Recommendations:
5.1 Introduction
This chapter summarizes the findings on the perceived influence of entrepreneurship skills on the sales performance of small and medium scale businesses in Kwara State. The chapter consists of summary of the study, conclusions, and recommendations.
5.2 Summary of the Study
In this study, our focus was to examine the perceived influence of entrepreneurship skills on the sales performance of small and medium scale businesses in Kwara State. The study specifically was aimed to determine the entrepreneurship skills required for the adequate performance of small and medium scale businesses in Kwara State, find out whether there is a significant statistical relationship between entrepreneurship skills and the sales performance of small and medium scale businesses in Kwara State, ascertain whether entrepreneurship skills influences the customer growth of small and medium scale businesses in Kwara State, and ascertain whether entrepreneurship skills influences the sales volume growth of small and medium scale businesses in Kwara State.
The study adopted the survey research design and randomly enrolled participants in the study. A total of 141 responses were validated from the enrolled participants where all respondents are staff of small and medium scale businesses in Kwara State.
5.3 Conclusions
Based on the findings of this study, the researcher made the following conclusion.
- The entrepreneurship skills required for the adequate performance of small and medium scale businesses in Kwara State includes: technical skills, managerial skill, marketing skills, leadership skills, and enterprenurial personal skills.
- There is a significant statistical relationship between entrepreneurship skills and the sales performance of small and medium scale businesses in Kwara State.
- Entrepreneurship skills contribute the customer growth of small and medium scale businesses in Kwara State.
- Entrepreneurship skills influence the sales volume growth of small and medium scale businesses in Kwara State.
5.4 Recommendations
Based on the findings of the study, the following recommendations are proffered.
- Emphasis must be paid on developing entrepreneurial skills in productivity and marketing as these were identified as key performance indicators.
- While efforts have been made to include entrepreneurship development training on college and university curricula, the training institutions should teach entrepreneurship in a more practical way than theorizing its principles.
- In addition, young entrepreneurs should be trained in gathering and processing market information that is relevant to their businesses. Sponsoring agents and financial institutions should provide means of enhancing capital investments of SMEs in the district.


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