INFLUENCE OF ENTREPRENEURIAL COMPETENCE, ORIENTATION AND FINANCIAL MANAGEMENT ON PERFORMANCE OF MICRO, SMALL & MEDIUM ENTERPRISES IN THE FEDERAL CAPITAL TERRITORY

Abstract

The performance of Micro, Small, and Medium Enterprises (MSMEs) is pivotal to economic development, particularly in emerging economies like Nigeria. This study examined the influence of entrepreneurial competence, entrepreneurial orientation, and financial management on the performance of Micro, Small, and Medium Enterprises in the Federal Capital Territory (FCT), Abuja. A quantitative research design was adopted, involving 179 Medium & Small Scale Enterprises owners and managers as respondents. Data were collected using structured questionnaires and analyzed using descriptive statistics, correlation analysis, and multiple regression analysis. Three hypotheses were tested and findings revealed that entrepreneurial competence, entrepreneurial orientation, and financial management significantly contribute to Micro, Small, and Medium Enterprises performance, with financial management showing the strongest positive effect. The regression analysis indicates that these factors collectively explain 57% of the variance in Micro, Small, and Medium Enterprises performance, underscoring their critical roles as success factors. The study recommends among others that deploying financial management will further boost & enhance MSME performance particularly in resource-constrained environments within the FCT.