ENTREPRENEURAL SKILLS AND BUSINESS GROWTH IN IMO STATE, NIGERIA

Abstract

This research study deployed entrepreneurial skills as correlates of business expansion in entrepreneurial venture firms in the state of Imo in Nigeria. Entrepreneurship is gradually emerging as the driver of economic growth, especially in the emerging economies. The research also focused on exploring the role that entrepreneurial skills - namely, leadership and networking have in the development of small enterprises. Past studies have already demonstrated the connection between these competencies and the performance of enterprises, but little empirical evidence has existed concerning Imo State. In the study four dimensions were used: relationship between sales growth and leadership skills, relationship between profitability and leadership skills, relationship between sales growth and networking, relationship between profitability and networking. A quantitative survey design was used and information was gathered based on 117 employees in purposively chosen entrepreneurial firms within the three geopolitical zones of the state; Owerri, Orlu and Okigwe. These were small businesses as each comprised between 5-49 of employees. A prepared questionnaire was the main tool of the data collection and its reliability was proved by piloting that gave Cronbach alpha of 0.81. Data were analyzed using descriptive statistics (mean and standard deviation) and Spearman rank correlation coefficient and statistical significance was established using p = 0.05. The results showed that leadership as well as networking skills have significant positive effects on the sales and profitability of any business. Moreover, leadership-networking interaction also showed a positive strengthening property of the business development. The paper arrives at a conclusion that entrepreneurial skills especially leadership skills and network are important ingredients in growing a business in small business. Their strategic nature is key in improving performance and competitiveness of firms in emerging economies such as Nigeria.