EXAMINE THE RELATIONSHIP BETWEEN ENTREPRENEURIAL BEHAVIOUR AND SOURCES OF FINANCE AS A PREDICTOR OF ENTREPRENEURIAL SUCCESS IN IJEBU-ODE METROPOLIS
Abstract
This study investigates the relationship between entrepreneurial behavior and sources of finance as predictors of entrepreneurial success among small and medium-sized enterprises (SMEs) in Ijebu-Ode metropolis, Ogun State, Nigeria. Specifically, it examines the effects of entrepreneurial behavior (e.g., proactiveness, innovativeness, risk-taking), internal sources of finance (e.g., personal savings, retained profits), and external sources of finance (e.g., bank loans, informal contributions) on business outcomes such as profitability, growth, and sustainability. The research targeted 250 registered SME entrepreneurs, with a sample of 152 selected using purposive sampling based on the Taro Yamane formula. The Pecking Order Theory and Institutional Theory provide the theoretical framework, emphasizing financing preferences and institutional influences on entrepreneurial decisions. A descriptive survey design was adopted, utilizing a self-developed structured questionnaire titled “Entrepreneurial Behaviour and Sources of Finance as Predictors of Entrepreneurial Success Questionnaire (EBSFPESQ)” to collect data via a four-point Likert scale. Findings reveal strong positive correlations between entrepreneurial behavior (r = 0.73, p
< 0.05), internal sources of finance (r = 0.68, p < 0.05), and external sources of finance (r = 0.65, p < 0.05) with entrepreneurial success. Respondents strongly agreed that innovation (Mean = 3.6) and proactiveness (Mean = 3.5) drive success, while personal savings (Mean = 3.7) and access challenges (Mean = 3.6) highlight financial dynamics. Multiple regression analysis shows these factors collectively explain 62% of success variance (R² = 0.62, p < 0.05). The study recommends SME-friendly loan products, entrepreneurial training, and formalized community-based financing. Further research into regional variations and longitudinal effects is suggested to enhance SME support strategies.
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