Entrepreneurial Culture and the Performance of Agro-Allied Smes in North Central Nigeria

Abstract

This paper is a part of my thesis titled “Entrepreneurial Ecosystem Components and the Performance of Agroallied SMEs in North Central, Nigeria. It investigates the effect of entrepreneurial culture on the performance of agro-allied small and medium enterprises (SMEs) in North Central Nigeria, a region central to the country’s agricultural value chain. Using a quantitative research approach, primary data were collected through structured questionnaires administered to agro-allied SME operators and employees across seven states and the Federal Capital Territory. A descriptive cross-sectional design was adopted, with simple random sampling applied to a population of 1,492 registered SMEs, yielding 713 valid responses for analysis. Entrepreneurial culture was measured through societal attitudes toward entrepreneurship, risk-taking, innovation, role modelling, fear of failure, and community support, while SME performance was proxied by competitive advantage. Data were analysed using descriptive statistics, regression analysis. The results reveal a highly supportive entrepreneurial culture within the study area and demonstrate a strong, positive, and statistically significant relationship between culture and SME performance (β = 0.766, p < .001). The structural model indicates that entrepreneurial culture explains 68.2% of the variance in SME performance, highlighting its substantial explanatory power. These findings suggest that shared values, norms, and social support systems play a critical role in enhancing innovation, resilience, and competitiveness among agro-allied SMEs. The study concludes that strengthening pro-entrepreneurial cultural norms and community support mechanisms can significantly improve SME performance and sustainability, providing important policy and practical insights for fostering enterprise growth in Nigeria’s agrarian regions.