Entrepreneurial Orientation and Business Performance: A Case Study of SMEs in Ibadan Metropolis

Abstract

Historically, business performance has sometimes being attributed to the entrepreneurial abilities of owners or managers, however incorporating such relationships as a basis for policy development is reliant on empirical proofs of this relationship. This article aimed at examining the relationship between entrepreneurial orientation and business performance. Specifically, the article aimed at examining whether entrepreneurial orientation have a relationship with the revenue and profitability of small and medium scale enterprises (SMEs) in Ibadan metropolis. A field survey was used to gather data from 160 respondents on their level of adoption of EO activities and their perceptions of the relationship between EO and revenue and profitability. Pearson Product Moment Correlation (PPMC) was used in testing for the hypotheses. The findings of this study point to the conclusion that increasing the performance of SMEs is best achieved by increasing their entrepreneurial orientation. The study also made recommendations on how this relationship can be exploited and made suggestions for further areas of study.