Entrepreneurial Characteristics and Financial Performance of Small and Medium Enterprises (SMEs) in Plateau State

Abstract

Small and Medium Enterprises (SMEs) have proven to be vital for economic growth. Furthermore, the sustainability of SMEs is important especially for developing countries. Entrepreneurial traits are the driving force for SMEs sustainability thus needs to be investigated. The objective of this study is to explore the relationship between entrepreneurial characteristics (locus of control, risk-taking attitude, innovative and need for achievement) and financial performance of SMEs in Plateau State. The study adopts the theoretical lens of personality based theory. Using a descriptive research design, primary data was collected via questionnaires. 287 questionnaires were distributed to management and supporting personnel working at top and middle management level of various SMEs in Plateau State. Regression analysis via SPSS was used to analyze the data. The study found that entrepreneurial characteristics contribute to the financial performance of SMEs in Plateau state. The implications and contribution to knowledge are discussed.