ENTREPRENEURSHIP SKILLS AND THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN MAKURDI LOCAL GOVERNMENT AREA, BENUE STATE

Abstract: This study examined the effect of entrepreneurship skills on the performance of Small and Medium Enterprises (SMEs) in Makurdi, Benue State. Specifically, the study assessed the effects of innovation skills, risk-taking skills and opportunity recognition skills on SME performance. A survey research design was adopted, with a population of 82 owners, managers and relevant staff drawn from 27 table-water and packaged-water production SMEs in Makurdi Metropolis. Census sampling was used, and data were collected through a structured questionnaire measured on a five-point Likert scale. The data were analysed using multiple regression. The findings revealed that innovation skills had a positive and significant effect on SME performance (β = 0.972, t = 6.718, p < 0.001). Risk-taking skills also had a positive and significant effect on SME performance (β = 0.409, t = 6.095, p < 0.001). However, opportunity recognition skills had a negative and significant effect on SME performance (β = −0.428, t = −3.436, p = 0.001). The study concludes that entrepreneurship skills significantly influence SME performance, although the direction and magnitude of their effects differ across the dimensions examined. It recommends that SME owners and managers should strengthen their innovation skills by continuously improving product quality, packaging, production processes and methods of serving customers. Secondly, SME owners and managers should develop stronger risk assessment and management capabilities. Before committing resources to new investments, products or markets, entrepreneurs should assess potential costs, benefits and uncertainties. Lastly, entrepreneurs should improve the conversion of identified opportunities into viable business outcomes. Since opportunity recognition recorded a negative significant effect on performance, SME owners should not merely identify opportunities but should subject them to proper market assessment, financial feasibility analysis and resource evaluation before implementation.