Impacts of Entrepreneurial Competence and Government Policy on SMEs' Non-Oil Export Performance in the Southwest Nigeria

Abstract

This paper investigated the effects of entrepreneurial competence and government support policy on the non-oil export performance of the Small and Medium-scale Enterprises (SMEs) in the Southwest Nigeria. The study anchors on resource-based view (RBV) and dynamic capabilities theory (DCT). Primary data collected from 279 SME owners/managers, who were selected through multi-stage and purposive sampling procedure in Lagos state, were analyzed using multiple regression method. The scale reliability test from the pilot study gave high Cronbach's Alpha Coefficient (α) of 0.870 above the threshold of 0.7 (Nunnally, 1978). A face validity for the questionnaire used was also established through qualitative assessment by trained experts in the field of SME business management. The study findings revealed that key dimensions of entrepreneurial competence(i.e. firm's owners'/managers' experience in exporting; innovation & creativity; and company reputation),as well as those of government support policy(i.e. administration of incentives supports to SMEs; control of multiple taxation& high interest rate; corruption, insecurity & regulatory issues; infrastructural facilities; and import duties on raw materials) exerted positive and significant impacts on SMEs' non-oil export performance. Consequently, the two null hypotheses tested in the study were rejected. The research therefore, recommends that SME business community should intensify efforts and investments on firms' entrepreneurial competence and ingenuity; while the government should renew institutional tenacity in creating enabling business environment in Nigeria to accelerate SMEs' non-oil export contributions toforeign exchange earnings.