PERCEIVED INFLUENCE OF ENTREPRENEURIAL SELF-EFFICACY ON PROFITABILITY, SUSTAINABILITY AND ORGANIZATIONAL EFFICIENCY OF SMALL AND MEDIUM ENTERPRISES (SMES) IN GOMBE STATE

Abstract

The study examined the perceived influence of entrepreneurial self-efficacy on profitability, sustainability and organizational efficiency of small and medium scale enterprises (SMES) in Gombe State This study adopted a descriptive research survey design. The study was guided by three specific objectives, three research questions and three null hypotheses respectively.  The study adopted a descriptive research survey design.  The population of this study comprised 1,354 owners and managers of registered Small and Medium Enterprises (SMES) who are members of National Association of Small and Medium Enterprises (NASME), National Association of Small Scale Industries (NASSI), and Association of Small Business Owners of Nigeria (ASBON) across all the 11 local governments in Gombe State, who participated in the conduct of the study, a total number of 578 business owners and managers out of 1,354 in the selected local governments were purposively selected (sampled) for the study. The instrument used for data collection was questionnaire tagged Perceived Influence Entrepreneurial Self-Efficacy, Profitability, Sustainability and Organizational Efficiency on Small and Medium Scale Enterprises was validated by three experts. A pilot study was conducted at Alkaleri Local Government area of Bauchi State using 30 registered small-scale businesses, to determine the stability of the instrument.  A reliability coefficient of 0.82 was obtained using Cronbach alpha method. The study finds that the respondents perceive ESE as having a moderate influence on profitability, particularly through increasing sales growth by implementing fresh ideas. Item 2 has a mean of (Mean = 3.14), suggesting that organizational creativity driven by ESE moderately enhances the success and profitability of small businesses through increased return on sales. Moreover, the respondents generally perceived influence of Entrepreneurial Self-Efficacy (ESE) as having a moderate influence on the sustainability of small and medium-scale enterprises (SMEs). Hence, the study recommends among others that while innovation is important, other factors might also play a significant role in business sustainability, combination of resources, tactical goal setting; and policy-driven actions are very crucial to ensuring that businesses remain viable and able to meet customer demands, while also increasing their net profit margins.

Keywords: Entrepreneurial Self-Efficacy, Profitability, Sustainability, Organizational Efficiency, Small and Medium Enterprises (SMES)