Entrepreneurial Mindset and Performance of Small and Medium Scale Enterprises in Makurdi Metropolis, Benue State-Nigeria

Emmanuel Lubem Asenge, Hembadoon Sarah Diaka, Alexander Terna Soom


Many studies indicates that entrepreneurial mindset is a critical factor in the accumulation, evaluation and selection of the knowledge which can lead an individual into potential business opportunities thereby enhancing entrepreneurial outcomes such as firm performance. This study examined the effect of entrepreneurial mindset on the performance of small and medium scale enterprises in Benue State. The focus of the research was to measure the entrepreneurs’ mindset exhibited through innovativeness, creativity, business alertness and risk taking and how these attributes contributed to the performance of SMEs. The research focused on a population of 650 small and medium scale enterprises based in Makurdi metropolis. A questionnaire was used to collect data from a sample of 250 SMEs in Makurdi metropolis which were selected through stratified random sampling method. Collected data were analyzed using descriptive and inferential statistics with the aid of Statistical Package for Social Sciences (SPSS). Correlation and multiple regression analysis were employed to analyse the data and test the hypotheses. The study revealed that innovativeness, creativity, business alertness and risk taking were significant in affecting performance of SMEs. The study concluded that entrepreneurial mindset or lack of it has a major effect on SMEs performance and if any economy is bended towards development and growth, it would have to embrace this concept. It recommended that all the policy makers and all stake holders should re-strategize and create forums that can promote entrepreneurial mindset among the existing and potential entrepreneurs.


Entrepreneurial mindset; small and medium scale enterprises; innovativeness; creativity; business alertness; risk taking

Full Text:



Abratt, R., & Lombard, A. (1993). Determinants of product innovation in specialty chemical companies. Industrial Marketing Management, 22(3), 169–176.

Adegbite, S. A. and Abereijo, I. O. (2014). Technological Innovation Sources and Institutional Supports for Manufacturing Small and Medium Enterprises in Nigeria. Journal of technological Management and Innovation, 2(2):89-108.

Ahimbisibwe, G. M., & Abaho, E. (2013). Export entrepreneurial orientation and export performance of SMEs in Uganda. Global Advanced Research Journal of Management and Business Studies, 2(1), 56-62.

Amabile, T. M. (1996). Creativity and Innovation in Organizations. Harvard Business School Publishing, Boston. USA.

Ardichvili, A., Richard C., & Sourav, R. (2003). A Theory of Entrepreneurial Opportunity Identification and Development. Journal of Business Venturing 18 (1), 105–123.

Barney, J.B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 1 (17), 99-120.

Baron, R. (1998). Cognitive mechanisms in entrepreneurship: why and when entrepreneurs think differently than other people. Journal of Business Venturing, 12, 275-294.

Brown, T. E., & Ulijn, J. M. (2004). Innovation, entrepreneurship and culture: the interaction between technology, progress and economic growth. Cheltenham, UK; Northampton, Mass., USA: E. Elgar Pub.

Bruyat, C. & Julien, P.A. (2001). Defining the Field of Research in Entrepreneurship. Journal of Business Venturing, 16 (2), 165-180.

Coulthard, M. (2007). The role of entrepreneurial orientation on firm performance and potential. International Journal of Entrepreneurship and Innovation, 4(3), 165-187.

Covin, J.G. & Slevin, D.P. (1991). A conceptual model of entrepreneurship as firm behavior. Entrepreneurship Theory and Practice 16: 7–24.

Daft, R.L. (2000). Organization Theory and Design. (7th Ed.) U.S.A: South-Western College Publishing, Thomson Learning. U.S.A.

Dhliwayo, S.V. & Vuuren, J.J. (2007). The strategic entrepreneurial thinking imperative. Accounting Communication, 7, 123-134.

Dweck CS (1999). Self-Theories: Their Role in Motivation, Personality, and Development. Hove: Psychology Press, Taylor and Francis Group.

Dweck, C.S. (2000). Self-Theories: Their role in motivation, personality, and development. Philadelphia, PA: Psychology Press.

Dweck, C.S. (2006). Mindset: The new psychology of success. New York: Random House.

Eno-Obong, H. (2006). Challenges of entrepreneurship in home eco-nomics and enhancement strategies. Journal of Home Economic and Research, 7, 69 -75.

Faltin, G. (2007). The successful entrepreneurs start as an artist and composer. Berlin: German Industry and Commerce.

Fillis, I. & Rentschler, R. (2010). The Role of Creativity in Entrepreneurship. Journal of Enterprising Culture, 18(1), 49-81.

Gaglio, C. M. & Katz, J. A. (2001). The Psychological Basis of Opportunity Identification: Entrepreneurial Alertness. Small Business Economics, 16, 95-111.

Gurol, Y. & Atsan, N. (2006). Entrepreneurial Characteristics amongst University Students: Some Insights for Entrepreneurship Education and Training in Turkey. Education + Training, 48 (1): 25-38.

Hair, J.F. (2005). Multivariate data analysis. Upper Saddle River: Pearson Prentice Hall

Halim, M. A. S and Mat, A. C. (2010). Craftmakers: A Significant study on entrepreneurial Creativity and Competitive Advantage. Canadian Social Science, 6(3), 59-66.

Heffernan, M.M. & Flood, P.C. (2000). An Exploration of the Relationship between Managerial Competencies Organizational, Characteristic and Performance in an Irish organization. Journal of European Industrial Training, 3(2), 128-136.

Henrik, B. (2007). Risk conception and risk management in corporate innovation: lessons from two Swedish cases. International Journal of Innovation Management, 11(4), 497–513.

Heunks, F.J. (1998). Innovation, Creativity and Success. Small Business Economics, 10, 263 – 272.

Heye, F.H. (2006). Innovation and Corporate and Survival. International Journal of Management Practice; 16 (2): 143-156.

Hisrich, R. Michael, P. & Shepherd, D. (2008). Entreprenneurship, Kewirausahaan, Jakarta: Salemba Empat.

Hughes, M. & Morgan, R. E. (2007). Deconstructing the Relationship between Entrepreneurial Orientation and Business Performance at The Embryonic Stage of Firm Growth. Industrial Marketing Management, 36,651-661.

Israel, K. J., & Johnmark, D. R. (2014). Entrepreneurial Mind-Set among Female University Students: A Study of University of Jos Students, Nigeria, Chinese Business Review, 13 (5), 320-332.

Jasra, J. M., Khan, M. A., Hunjra, A. I., Rehman, R. A. U. & Azam, R. I. (2011). Determinants of Business Success of Small and Medium Enterprises. International Journal of Business and Social Science, 2(20), 274-280.

Johnson, D.V. (2009). Growth Mindset as a Predictor of Smoking Cessation. Thesis Submitted in partial fulfillment of requirements for the degree doctor of philosophy in urban education at the Cleveland State University.

Karabey, C.N. (2012). Understanding entrepreneurial cognition through thinking style, Entrepreneurial alertness and risk preference: do entrepreneurs differ from others? Procedia - Social and Behavioral Sciences, 58, 861 – 870.

Kirzner, I. M. (1997). Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach. Journal of Economic Literature, 35, 234-243.

Kirzner, I.M. (1999). Creativity And/or Alertness: A Reconsideration of the Schumpeterian Entrepreneur. Review of Austrian Economics, 11, 67-89.

Kreiser, P., Marino, L. & Weaver, K. (2002). Assessing the psychometric properties of the entrepreneurial influence of relational dynamism. Journal of Global Business and Technology,3, 29- 39.

Kuratko, D. F., Hornsby, J. S. & Goldsby, M. G. (2007). The Relationship of Stakeholder Salience, Organizational Posture, and Entrepreneurial Intensity to Corporate Entrepreneurship. Journal of Leadership and Organizational Studies 13(4), 56-72.

Lackéus, M. & Williams, M. K. (2015). Venture Creation Programs - Bridging Entrepreneurship Education and Technology Transfer. Education + Training, 57 (1), 48-73.

Lackéus, M. (2016). A Value and Economics Grounded Analysis of Six Value Creation Based Entrepreneurial Education Initiatives. Conference paper for 3E ECSB Entrepreneurship Education Conference (1-13 May 2016).

Leeds, UK. & Lackéus, M. 2013. Developing Entrepreneurial Competencies - An Action-Based Approach and Classification in Education (Published Thesis). Licentiate Thesis, Chalmers University of Technology.

Leko-Šimi´ M. & Horvat, J. (2006). Risk taking propensity and export performance of Croatian exporters. Management Global Transaction, 4(4):313- 326

Lim, S. (2008). Entrepreneurial Orientation and the Performance of Service Business.http://www.decisionscience.org/Proceedings/DSI2008/docs/392- 9586.pdf]

Lumpkin, G. & Dess, G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135-172.

Lumpkin, G.T. & Dess, G.G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing, 3(16), 124-139.

Marnix, A. (2006). Inhibitors of disruptive innovation capability: a conceptual model. European Journal of Innovation Management, 9(2), 215-233.

McGrath, R.G. & MacMillan, I. (2000a). The entrepreneurial mindset: strategies for continuously creating opportunity in an age of uncertainty. USA: Harvard Business School Press.

McGrath, R.G. & MacMillan, I.C. (2000b). The Entrepreneurial Mindset: Boston, MA Harvard Business School Press.

McGrath, R. G. (2001). Exploratory learning, innovative capacity and managerial oversight. Academy of Management Journal, 44(1), 118–131.

Mohammed, S. M., Ricardo B. & Harry E. (2014) Entrepreneurial Orientation and Financial Performance of Nigerian SMES: The Moderating Role of Environment. https://www.academia.edu/8937395/A

Morris, M.H. & Kuratko, D.F. (2002). Corporate Entrepreneurship: Entrepreneurial development within Organisations. London: Thompson South Western.

Namusonge, G.S., Muturi, W. & Olaniran, O. (2016). The Role of Innovation on Performance of Firms on Nigerian Stock Exchange. European Journal of Research and Reflection in Management Sciences, 4(1),40-50.

Ndesaulwa, A.P. (2016). The Impact of Innovation on Performance of Small and Medium Enterprises (SMEs) in Tanzania: A Review of Empirical Evidence. Journal of Business and Management Sciences, 4(1), 1-6.

Ngek, B. N. (2012). An exploratory study on entrepreneurial mindset in the small and medium enterprise (SME) sector: A South African perspective on fostering small and medium enterprise (SME) success. African Journal of Business Management, 6(9), 3364-3372.

Nieman G (2006). Managing the small business. In: Nieman G (Ed.) Small Business Management: A South African approach Pretoria: Van Schaik, pp.17- 24.

Njeru, P.W (2012). The effect of entrepreneurial mindset on the performance of manufacturing business in Nairobi. Unpublished Ph.D thesis, JKUAT.pp.155- 161.

Othman, M. N., Ghazali, E., & Cheng, O. C. (2005). Demographics and Personal Characteristics of Urban Malaysian Entrepreneurs: An Ethnic Comparison. International Journal of Entrepreneurship and Innovation Management, 5 (6), 421-440.

Pihie, Z.A.L. & Arivayagan, K. (2016). Predictors of Entrepreneurial Mindset among University Students. International Journal of Humanities Social Sciences and Education (IJHSSE), 3(7), 1-9.

Pihie, Z.A.L. & Sani, A.S.A. (2009). Exploring the Entrepreneurial Mindset of Students: Implication for Improvement of Entrepreneurial Learning at University. The Journal of International Social Research, 2(8), 341-345.

Rebound, M. A. (2008). Innovation Management of SMEs in the creative sector. International Journal of Innovation, 31(2), 41-57.

Ricardo, R., & Wade, D. (2001). Corporate Performance Management: How to Build a Better Organization through Measurement Driven Strategies Alignment. Butterworth Heinemann. Entrepreneurship Theory and Practice, 26(4), 71-95.

Salavou, H., Baltas, G., & Lioukas, S. (2004). Organizational innovation in SME’s: The importance of strategic orientation and competitive structure. European Journal of Marketing, 38 (9), 1091-1112.

Senges, M. (2007). Knowledge entrepreneurship in universities: practice and strategy of Internet based innovation appropriation. [WWW document]. URL http://knowledgeentrepreneur.com 29 July, 2017.

Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 3(2), 245-260.

Sirilli, A. (2000). Innovation and firm perfomance. Paper presented at the Conference innovation and Innovative Creation: Statistics and Indicators, France.

Solesvik, M., Westhead, P., Matlay, H., & Parsyak, V. (2013). Entrepreneurial Assets and Mindsets, Education + Training , 55 (8/9), 748 – 762.

Spinosa C, Flores F, Dreyfus LH (1997). Entrepreneurship, Democratic Action and Cultivation of Solidarity: Disclosing New Worlds. Massachusetts Institute of Technology, United State of America: MIT Press.

Susilo, W.H. (2014). An Entrepreneurial Mindset and Factors’ Effect on Entrepreneur’s Spirit in Indonesian. The SIJ Transactions on Industrial, Financial and Business Management (IFBM), 2(4), 227-234.

Tang, J., K. Michele, K. & Lowell, W.B. (2012). Entrepreneurial Alertness in the Pursuit of New Opportunities. Journal of Business Venturing, 27(1), 77–94.

Tanveer, M. A., Akbar, A., Gill, H. & Ahmed, I. (2013). Role of Personal Level Determinants in Entrepreneurial Firm’s Success. Journal of Basic and Applied Scientific Research, 3(1):449-458

Thompson, J.L. (2004). The facets of the entrepreneur: Identifying entrepreneurial potential. Management Decision, 42(2): 243-258.

Tidd, J. and Bessant, J. (2011). Managing Innovation: Integrating Technological, Market and Organisational Change. West Sussex: John Wiley and Sons Ltd.

Umoh, J.N. (1999). The Relevance of Innovation in Entrepreneurship. Journal of Business Studies, 6 (2): 11-118.

Wahab, L. & Ijayi M.A. (2006). Small and medium scale enterprise access to commercial banks credit and their contribution to GDP in Nigeria. CIBN Journal of Banking, 3(2), 45-58.

Wang, Y. & Poutziouris, P. (2010). Entrepreneurial risk taking: empirical evidence from UK family firms. Entrepreneurial Behavior and Research, 16(5), 370- 388.

Wiklund, J., & Shepherd, D. (2005). Entrepreneurial orientation and small business performance: a configurationally approach. Journal of Business Venturing, 20(1), 71-89.

Wu, W. 2009. A Competency-based Model for the Success of an Entrepreneurial Start-up. WSEAS Transactions on Business and Economics, 6 (6), 279-291.

Yang, C. W. (2008).The relationships among leadership styles, entrepreneurial orientation and firm performance. Managing Global Transitions, 6(3), 257–275.

Zahra, S. A. & Garvis, D. M. (2000). International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility. Journal of Business Venturing, 15, 469-492

Zairi, M. (1994) Measuring Performance for Business Result; London; Chapman and Hall.


  • There are currently no refbacks.

Int. J. Innov. e-ISSN: 2318-9975

Rua Vergueiro, 235/249 - Liberdade, São Paulo - SP (Brasil), Cep: 01504-000

Licença Creative Commons
Este obra está licenciado com uma Licença 
Creative Commons Atribuição-NãoComercial-CompartilhaIgual 4.0 Internacional