EFFECTS OF CREATIVITY AND INNOVATION ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES): A STUDY OF FAMILY BUSINESSES IN NIGER STATE

This study examines the effects of creativity and innovation on the performance of small and medium-scale enterprises (SMEs), specifically focusing on family businesses in Niger State, Nigeria. The research investigates how creative practices and innovative strategies contribute to the growth, sustainability, and competitive advantage of family-owned SMEs. Utilizing a mixed- methods approach, the study employs both quantitative and qualitative data collection techniques, including surveys and in-depth interviews with owners and managers of family businesses in Niger State. A sample of 120 family-owned SMEs was selected using a stratified random sampling technique, ensuring a diverse representation of sectors such as retail, manufacturing, agro- processing, and services. The study's primary objective is to explore the relationship between creativity, innovation, and business performance. The research identifies that creativity, manifested in the development of new ideas, products, and marketing strategies, directly influences business outcomes. Additionally, innovation, particularly through the adoption of new technologies, business models, and product diversification, plays a significant role in enhancing business performance. The results indicate that family businesses that embrace creative and innovative practices tend to perform better, showing improvements in profitability, market share, and customer loyalty. Furthermore, the research highlights several barriers to the effective implementation of innovation in family businesses, including financial constraints, lack of technical expertise, and resistance to change. Despite these challenges, the study concludes that creativity and innovation are critical drivers of success for family businesses, especially in competitive and evolving markets. The findings offer valuable insights for family business owners, policymakers, and scholars seeking to understand how SMEs can harness creativity and innovation to improve performance. The study recommends fostering a culture of creativity within family-owned SMEs, investing in technological advancements, encouraging product diversification, and creating strategic partnerships to support innovation. It also calls for policy interventions to provide financial support and reduce bureaucratic barriers, enabling family businesses to thrive in a competitive environment. The research contributes to the existing literature on creativity, innovation, and SME performance, particularly in the context of family businesses in developing regions.