The Nexus between Cultural Factors and Entrepreneurial Performance of Small and Medium Scale Enterprises in Nigeria

Abstract

This research paper presents an empirical investigation into the nexus between cultural factors and entrepreneurial performance of small and Medium Scale Businesses in Nigeria. Africa is a continent dominated by Culture and culture affects daily sales and it also affects demands and supply as well as patronage of any business. This paper is aimed at investigating the effect of cultural factors on entrepreneurial performance as well as ascertaining the nature of relationship between cultural factors and entrepreneurial performance. This research adopted a descriptive survey method. This research used a quantitative approach to data gathering of 200 SME employees through a Likert scaled questionnaire for data analysis. The study concludes through its findings that social network capital, cultural factors, Risk-taking behavior and Work ethic and perseverance have a significant, positive and direct effect on entrepreneurial performance of SMEs in Delta state. The study also revealed that other cultural factors like Attitudes toward Failure and religious beliefs have a significant and direct effect on entrepreneurial performance of SMEs in Delta state. The research paper empirically showed that there is a great and significant relationship between cultural factors and entrepreneurial performance of SMEs in Delta state. The study has proven that people’s culture does affect entrepreneurial performance. Therefore this study recommends that before setting up businesses in any location, a smart entrepreneur should first observe the culture of the people living in that geographical location of the proposed business to ascertain the kind of business that will be most appropriate for the culture of the people there.