Page 1355

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026

Entrepreneurial Networking and the Performance of Selected Micro

Enterprises in Osun State, Nigeria

Israel Oludele Oyewale,

Ezekiel Alabi

Business Administration and Management Department, Osun State Polytechnic, Iree, Nigeria

DOI:

https://doi.org/10.51583/IJLTEMAS.2026.150500105

Received: 08 May 2026; Accepted: 12 May 2026; Published: 05 June 2026

ABSTRACT

The persistent challenge of weak business performance among micro enterprises in Nigeria highlighted the need

to examine how entrepreneurial networking affected enterprise performance, particularly in Osun State. Despite

increasing participation in informal and formal business activities, limited integrated evidence existed on how

different forms of entrepreneurial networking jointly affected the performance of micro enterprises, thereby

necessitating this study. The study therefore examined the effect of entrepreneurial networking on the

performance of micro enterprises in Osun State, Nigeria, with specific objectives focusing on personal

networking, social networking, operational networking, and strategic networking. A quantitative research design

was adopted. Data were collected through a structured questionnaire administered to 490 respondents selected

from a population of 1,370,908 micro enterprise owners using multistage sampling technique. Data were

analysed using descriptive statistics involving frequency and percentage, alongside inferential statistics

involving multiple regression analysis. The findings indicated an overall entrepreneurial networking contribution

of 74.6%, while personal networking (B = 0.619), social networking (B = 0.755), operational networking (B =

0.829), and strategic networking (B = 0.884) all exerted significant positive effect on micro performance. The

study concluded that entrepreneurial networking significantly affected the performance of micro enterprises. It

was recommended that micro enterprise owners should strengthen networking activities through improved

relationship building and strategic collaboration. It was also recommended that policymakers should develop

supportive frameworks that encourage networking platforms and strengthen enterprise linkages for improved

sustainability and growth.

Keywords: entrepreneurial networking, personal networking, operational networking, social networking,

strategic networking

INTRODUCTION

Entrepreneurial networking is often at the heart of how micro enterprises navigate uncertain conditions and

improve their performance. Rather than operating in isolation, micro business owners rely on networking to

access vital resources like information, funding, and market opportunities, as highlighted by Hussain et al.

(2024). These networkings are not one-dimensional, but they are built through personal relationships, everyday

social interactions, operational connections, and broader strategic alliances, all of which shape how a business

grows and adapts over time (Marcano Nieves & Sosa-Varela, 2025). From another angle, Jiang et al. (2025)

viewed networking as a valuable relational asset that helps entrepreneurs share knowledge, cut down transaction

costs, and support innovation. In practice, this means entrepreneurs draw on personal trust, operational support

systems, and long-term partnerships to stay competitive. Ultimately, strong and well-managed networkings tend

to translate into better performance, often seen in rising sales, expanding customer bases, and increased business

capacity, as noted by Zacca (2026).

Globally, entrepreneurial networking is widely recognised as a strategic mechanism through which micro

enterprises in advanced economies strengthen competitiveness, innovation, and long-term survival in dynamic

markets (John, 2024). Contemporary scholarly discourse explains that networking relationships enable micro

businesses to access external knowledge, specialised skills, and collaborative opportunities that are often

Page 1356

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026

unavailable within their limited internal structures (Penna & Brito, 2026). Marcano Nieves and Sosa-Varela

(2025) noted that networking behaviours shape how entrepreneurs interact with stakeholders, build trust, and

coordinate resources, thereby influencing operational effectiveness and strategic positioning. From a broader

developmental view, Li and Shafait (2025) argued that embedded networking ties enhance innovation capacity

and adaptability, which are critical for sustaining micro enterprise growth in competitive environments.

Similarly, Alshebami (2024) emphasised that networking ties support resilience and recovery by facilitating

access to markets and information flows. Above all, entrepreneurial networking is seen as a global driver of

micro enterprise performance, particularly in terms of business growth and expansion.

Across many African economies, entrepreneurs are relying on networkings as a practical way to work around

structural challenges and keep their businesses moving forward (Sendawula et al., 2023). Rather than operating

in isolation, micro business owners build connections that help them share knowledge, develop trust, and tap

into limited resources that would otherwise be hard to access (Dwumah & Amaniampong, 2024). These

relationships often open doors to new opportunities and markets, making it easier for micro enterprises to grow

and stay resilient even in uncertain conditions (Ngera & Namusonge, 2024). In places like South Africa, both

formal associations and informal ties play a role, strengthening collaboration and improving how information

flows between entrepreneurs (Zulu & Banda, 2025). Entrepreneurial networking also shapes how business

owners learn and adapt over time, sharpening their ability to respond to change (Mayanja et al., 2025). Taken

together, the evidence positions entrepreneurial networking as a key driver of business performance, supporting

both growth and long-term sustainability across diverse African settings.

Across Nigeria, more people are beginning to see entrepreneurial networking as a practical way micro business

stay flexible and keep performing in tough, competitive markets. Rather than operating in isolation, Ogunfolu et

al. (2025) revealed that micro business owners rely on networkings as everyday channels for sharing ideas,

finding customers, and building partnerships. As noted by Ajirowo (2024), these connections open doors to

knowledge and collaboration that would otherwise be hard to access. In a similar vein, Okonta and Ohikhena

(2025) showed that both social and strategic ties help firms become more visible and better connected, which

supports steady growth. Olanrewaju (2024) also linked active networking with improved innovation and easier

access to new opportunities within local business environments. Adding to this, Ogunfolu et al. (2025)

highlighted how trust-based relationships within networks encourage resource sharing, strengthening resilience

and expansion. These perspectives make it clear that networking plays a key role in shaping micro enterprise

success, especially when examining business growth among micro enterprise owners in Osun State.

Globally, entrepreneurial networking is widely acknowledged as a driver of micro enterprise performance, yet

existing studies often isolate specific networking attributes, thereby limiting a holistic understanding of how

combined networking dimensions influence business growth (John, 2024). Across African economies, research

attention remains uneven, with emphasis placed on access to finance or innovation linkages, while integrated

networking frameworks that capture diverse relational ties are still insufficiently explored (Mayanja et al., 2025).

In Nigeria, studies across states highlighted the relevance of networking for enterprise sustainability, but they

frequently adopt fragmented approaches that examine single dimensions or narrow contexts (Ajirowo, 2024).

Further evidence from Tagha et al. (2024) suggested that while networking enhances performance,

methodological limitations persist in capturing its multidimensional effect. In Osun State, available studies

largely focused on isolated networking elements, leaving unclear how combined networking dimensions affect

micro enterprise performance. This gap in scope, context, and analytical integration defines the core problem

this study addressed.

The main objective of this study is to examine the effect of entrepreneurial networking on the performance of

micro enterprises in Osun State, Nigeria. The specific objectives are to:

i) examine the extent to which personal networking affects the performance of micro enterprises in Osun State.

ii) assess the effect of social networking on the performance of micro enterprises in Osun State.

iii) analyse the effect of operational networking on the performance of micro enterprises in Osun State.

Page 1357

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026

iv) evaluate how strategic networking affects the performance of micro enterprises in Osun State.

LITERATURE REVIEW

Entrepreneurship

Entrepreneurship today is best understood as more than just starting a business but it is an ongoing, adaptive

process affected by how people spot opportunities and make the most of limited resources in uncertain

environments. It involves recognising possibilities, organising what is available, and creating value through

innovation while taking calculated risks. Aladejebi (2020) showed that this process does not happen in isolation.

Instead, it is deeply rooted in relationships, where networking play a key role in opening doors to knowledge,

funding, and market access, ultimately influencing how well a business performs (Sendawula et al., 2023). That

said, Aladejebi (2020) still debate what entrepreneurship truly means, as it is often mixed up with related ideas

like behaviour or orientation, which makes it harder to measure and study consistently. In places like Africa,

particularly Nigeria, entrepreneurship is increasingly viewed as socially embedded, with strong networking ties

helping micro businesses stay flexible and grow, making networking essential for turning ideas into real business

success.

Entrepreneurial Networking

Networking is understood as both planned and informal ways entrepreneurs build and sustain relationships that

give access to information resources and opportunities essential for business survival and growth. Scholars such

as Marcano Nieves and Sosa-Varela (2025) viewed it as an active, dynamic capability that influences

entrepreneurial success across different economic settings effectively. Entrepreneurial networking is viewed as

a pivotal relational process through which micro-enterprises gain external resources strengthen competitiveness.

It refers to web of relationships linking people and organisations for sharing information and opportunities (Jiang

et al., 2025). Specifically, it involves entrepreneurs building and using personal, social and strategic connections

to access resources, lower uncertainty, and improve their position in market (Marcano Nieves & Sosa-Varela,

2025). However, literature remains fragmented, as many studies focus on social capital, personal or structural

ties instead of combining their functional and strategic roles, which weakens theoretical clarity (John, 2024).

Evidence from Li and Shafait (2025) showed that networking embeddedness supports innovation responsiveness

though integration limits predictive power in micro-enterprise research. In Africa especially Nigeria, (Mayanja

et al., 2025) noted that networking is driven by survival needs rather than growth highlighting conceptual gaps.

Networking improves access to knowledge, finance, and opportunities but inconsistent framing reduces

explanatory precision across studies (Penna & Brito, 2026).

Personal Networking

Personal networking, in this sense, refers to the entrepreneur’s informal, trust-based relationships with family,

friends, mentors, and close contacts that help move information and mobilise early-stage resources (Marcano

Nieves & Sosa-Varela, 2025). However, some conceptual critiques argue that research often focuses too much

on the breadth of ties while neglecting the quality and durability of these connections, which can distort their

real contribution to enterprise outcomes. Evidence from Mayanja et al. (2025) showed that strong personal ties

strengthen micro-enterprise resilience and adaptability by enabling knowledge sharing. In Nigeria, Pila (2025)

suggested these networkings improve access to customers and credit, although their fragmented use often

restricts long-term performance gains. Overall, entrepreneurial networking is widely seen as a driver of micro-

enterprise performance through growth, yet personal networking is still underexplored as a complex,

multidimensional factor influencing sustained competitiveness. These findings highlight the need for more

detailed analysis of relationship quality in entrepreneurial ecosystems over time and across different sectors

especially.

Social Networking

Social networking is a key conceptual element within entrepreneurial networking that explains how micro

enterprises access and mobilise external relational resources for survival and growth. It broadly refers to the

Page 1358

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026

patterned interactions among individuals and groups that facilitate information exchange, trust building, and

resource coordination. Conceptually, Sendawula et al. (2023) described social networking as a dynamic

relational system that connects entrepreneurs to opportunities beyond their internal capabilities. In developed

economies such as Germany and Canada, John (2024) argued that strong social networkings improve opportunity

recognition, although overreliance on informal ties may restrict strategic expansion. Within African economies,

Dwumah and Amaniampong (2024) showed that social networking enhances access to finance and market

intelligence, yet its benefits are uneven due to weak institutional linkages. In Nigeria, Ajirowo (2024) noted that

social networking support micro enterprise visibility and survival, but often remain fragmented and poorly

structured. Critically, while social networking improves micro enterprise performance through knowledge flow

and cooperation, Marcano Nieves and Sosa-Varela (2025) cautioned that excessive dependence on informal ties

may reduce innovation and strategic competitiveness if not properly balanced with formal networking.

Operational Networking

Operational networking is a dimension of entrepreneurial networking that focuses on the day-to-day

relationships used by micro enterprises to coordinate activities, secure inputs, and sustain routine business

functions. It is conceptually viewed by John (2024) as the practical layer of networking that converts

relationships into immediate operational support and efficiency. In advanced economies, Penna and Brito (2026)

argued that operational ties enhance supply reliability and reduce transaction delays, although overly

transactional networking may weaken long-term strategic learning. Within African settings, Mayanja et al.

(2025) opined that operational networking is described as a survival mechanism that supports informal

coordination and resource sharing among micro businesses, yet its informal nature can limit scalability and

formal integration. In Nigeria, Ajirowo (2024) indicated that operational linkages improve access to materials

and customers, but often remain fragmented and poorly structured, reducing their sustained impact on

performance. From a conceptual view, operational networking boosts micro enterprise performance by

improving efficiency and continuity, but its dominance without strategic balance may constrain innovation and

long-term growth.

Strategic Networking

Strategic networking is a core dimension of entrepreneurial networking that explains how micro enterprises

deliberately build and maintain high-value relationships to gain competitive advantage. It represents intentional

and long-term relationship management aimed at accessing resources beyond the firm’s internal capacity.

Conceptually, Soininen et al. (2023) defined strategic networking as purposeful alliance building that aligns

external ties with firm growth objectives. In developed economies, Franco and Haase (2024) critiqued earlier

views for overemphasising structural ties while neglecting the dynamic quality of trust and reciprocity in network

effectiveness. Abubakar and Yusuff (2025) argued that strategic networkings are often constrained by weak

institutional support, yet they remain essential for micro enterprise survival. In Nigeria, Ojo and Akinwale (2024)

noted that strategic networking enhances access to markets and finance, though many studies treat it as static

rather than evolving. Strategic networking positively affects micro enterprise performance by improving

innovation, market expansion, and resource mobilisation, but fragmented conceptualisation limits its explanatory

power for sustained growth outcomes.

Micro Enterprises

Micro enterprises are pivotal to job creation and grassroots income generation economies. However,

sustainability is constrained by limited capital, weak managerial capacity, and poor market linkages. In advanced

economies, Kraus and Jones (2024) defined micro enterprises as businesses with fewer than 10 employees, a

definition critiqued for overlooking digital productivity differences. Similarly, empirical measurement

commonly combines employment, turnover, and asset intensity indicators for comparability across datasets

(OECD, 2023). In South Africa, Moyo (2024) revealed that micro enterprises are classified as employing below

10 workers with minimal turnover ceilings, yet inconsistencies in informal sector coverage weaken statistical

reliability. In Nigeria, Adebayo (2024) noted that NBS and MSME frameworks align classification around

employment and asset bands, while SMEDAN defines micro enterprises as businesses with 1–9 employees and

Page 1359

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026

limited capital base, a definition adopted in this study for its policy relevance. Wang (2025) noted that

entrepreneurial networking enhances micro enterprise performance by facilitating information flow, resource

acquisition, and opportunity recognition.

Performance of Micro Enterprises

Micro enterprise performance is a central construct in entrepreneurship literature that reflects how very micro

firms utilise scarce resources to achieve survival, competitiveness, and expansion in volatile markets. It is

commonly defined across sectors as the extent to which micro businesses achieve financial and non-financial

outcomes such as income stability in retail, service efficiency in hospitality, and productivity gains in small

manufacturing (Dimoso & Utonga, 2024). In professional practice, accountants emphasise profitability and

liquidity, marketers focus on customer retention and market reach, while operations managers assess efficiency

and output consistency, showing that performance is multidimensional (Dimoso & Utonga, 2024). In Nigeria,

NBS and CBN frameworks evaluate micro enterprise performance through survival rates and revenue trends,

while SMEDAN adds employment stability and asset accumulation as indicators (Akinwale, 2024). Business

growth is selected as the core performance metric, defined by Wang and Esperança (2023) as sustained increases

in sales, assets, and market expansion, which entrepreneurial networking enhances through resource access and

opportunity diffusion.

Theoretical Review

The theoretical review lays the groundwork for understanding how entrepreneurial networking affects the

performance of micro enterprises. It shows how different networking dimensions, both individually and

collectively, shape business success and help entrepreneurs gain a competitive edge. This study is mainly guided

by social capital theory as the core framework, while network theory provides additional support. Together, the

theories clearly explain how entrepreneurial networking improves the performance of micro enterprises,

especially among micro business owners in Osun State, Nigeria.

Social Capital Theory

Social Capital Theory was propounded by Bourdieu (1986) and later expanded by Coleman (1988) and Putnam

(1993), who explained that social relationships, trust, norms, and networkings create valuable resources that

improve individual and business outcomes. The theory views social capital as the benefits entrepreneurs obtain

through durable social connections and reciprocal interactions within formal and informal networks (Doan et al.,

2023). It assumes that entrepreneurs with stronger networks gain easier access to information, finance, market

opportunities, knowledge, and institutional support that enhance enterprise performance (Dwumah et al., 2024).

The theory further predicts that sustained networking strengthens innovation, competitiveness, survival, and

business growth among small firms (Manafe et al., 2024). Despite its wide acceptance, critics argued that the

theory lacks precise measurement standards and sometimes overemphasises positive networking outcomes while

ignoring exclusion, dependency, and unequal access to resources (Daskalopoulou et al., 2023). Nevertheless,

several scholars strongly supported the theory because it effectively explains how entrepreneurial relationships

influence firm success across different economies and cultures (Pansuwong & Photchanachan, 2023). Therefore,

social capital theory underpins this study because entrepreneurial networking links micro enterprise owners with

strategic relationships and resource access that improve business performance.

Network Theory

Network Theory was advanced by Granovetter (1973) through the strength of weak ties concept and later

expanded by scholars such as Burt (1992) and Castells (1996), who explained how social and business

connections affect access to opportunities, resources, and information. The theory explains that individuals and

firms operate within interconnected networkings where relationships influence behaviour, decision-making, and

performance outcomes (Gao et al., 2023). Network theory assumes that entrepreneurs with broader and stronger

networking ties gain faster access to market information, innovation, finance, suppliers, and strategic

partnerships that improve enterprise performance (Han & Xie, 2023). The theory predicts that effective

entrepreneurial networking enhances competitiveness, innovation capability, business growth, and survival

Page 1360

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026

among micro enterprises through continuous interaction and resource exchange (Satar et al., 2024). Critics

argued that the theory pays limited attention to trust, cultural differences, and unequal power relations within

networkings, while excessive dependence on networkings may also restrict independent decision-making (Yates

et al., 2023). Nonetheless, many scholars supported the theory because it clearly explains how networking

structures and relationships influence entrepreneurial success across different economies and industries (Robledo

et al., 2023). Therefore, Network Theory supports this study by explaining how entrepreneurial networking

structures improve the performance of micro enterprises. The theory complements the underpinning social

capital theory by clarifying how networking connections create channels through which social capital resources

are developed and utilised for business performance improvement.

Empirical Review

Examining earlier studies on entrepreneurial networking and micro-enterprise performance provides a solid

knowledge base for this research. Reviewing past findings helps explain how different forms of entrepreneurial

networking, including personal, social, operational, and strategic networkings, influence business growth and

overall performance in micro enterprises while offering valuable insight into the factors that support long-term

entrepreneurial success.

Mayanja, Mutebi, and Isingoma (2025) examined entrepreneurial networking and sustainability of women-

owned micro-enterprise performance in selected East African economies, focusing on Uganda. The study area

covered urban and semi-urban micro enterprises. A quantitative survey design was adopted, and structured

questionnaires were used for data collection. The study population consisted of 600 registered women-owned

micro enterprises, from which 518 respondents were selected through simple random sampling. Data were

analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). Findings revealed that

operational networking significantly enhances micro enterprise performance through improved resource access,

knowledge sharing, and strengthened business sustainability.

John (2024) investigated entrepreneurial networking and SME performance in a study titled Show Me Your

Networks and I’ll Tell You Your Future: Entrepreneurial Networks and SME Performance. The study focused

on small and micro enterprises in developing economies, including African business environments. The study

adopted a quantitative survey design and used structured questionnaires to obtain primary data from SME owners

and managers selected through purposive and simple random sampling techniques. A sample of 387 respondents

was drawn from registered enterprises. Data were analysed using structural equation modelling and regression

analysis. Findings revealed that personal networking significantly improves enterprise growth, market access,

innovation, and overall business performance through stronger social and professional relationships.

Akinwale and Oluwafemi (2023) investigated the effect of entrepreneurial networking on the performance of

micro enterprises in Lagos State, Nigeria. A place where many small businesses experience weak growth due to

limited market connections and poor access to business support. The study adopted a descriptive survey design

and used structured questionnaires to obtain data from 420 registered micro enterprise owners selected through

stratified random sampling from a population of 2,135 digital businesses. Data were analysed using descriptive

statistics and multiple regression analysis. The findings revealed that personal and social networking

significantly improved sales growth, market expansion, customer retention, and overall business performance

among micro enterprises.

Oyewobi, Adedayo, and Olorunyomi (2023) investigated the influence of social media adoption on the

performance of construction SMEs in Abuja, Nigeria, where many micro enterprises experience weak market

visibility and low business growth. The study adopted a quantitative cross-sectional survey design. Structured

questionnaires served as the data collection instrument for responses obtained from construction SME owners

and managers. The population comprised registered construction SMEs in Abuja, while purposive sampling

produced a sample size of 210 respondents. Data were analysed using structural equation modelling and

descriptive statistics. Findings revealed that social networking through social media adoption significantly

improved customer relations, market reach, and overall enterprise performance.

Page 1361

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026

METHODOLOGY

This study adopted a quantitative research design because it was considered appropriate for examining the effect

of entrepreneurial networking on the performance of micro enterprises without manipulating any variables. The

design enabled the collection of numerical data from a large population of micro enterprise owners at a single

point in time, which supported objective measurement of relationships among variables as they naturally existed.

The study area was Osun State, Nigeria, covering all 30 Local Government Areas. Osun State was selected due

to its high concentration of micro enterprises across diverse sectors such as retail, agriculture, services, crafts,

and ICT. The presence of active informal and semi-formal business activities across urban and rural communities

made the state suitable for assessing how networking influenced enterprise performance in a real business

environment. The population of the study consisted of 1,370,908 micro enterprise owners, as reported by the

National Bureau of Statistics (SMEDAN, 2022), ensuring broad coverage of different business categories across

the state.

A multistage sampling technique was adopted to ensure representativeness. The first stage involved clustering

the state into its three senatorial districts, followed by the selection of Local Government Areas across the

districts. The second stage involved stratifying micro enterprises by sector, namely retail, agriculture, services,

crafts, and ICT businesses. The third stage involved the use of simple random sampling to select respondents

from each stratum. The sample size was determined using Taro Yamane’s formula, which initially produced 400

respondents. To enhance representativeness and account for possible non-response, a 30% adjustment was

applied in line with Creswell (2014) and Israel (1992), resulting in an increase of the effective sample size to

approximately 520 respondents. This ensured adequate statistical power and improved generalisability of

findings across the study population.

Data were collected using a structured questionnaire designed on a 5-point Likert scale. The instrument was

divided into three sections. Section A captured demographic characteristics of micro enterprise owners. Section

B measured entrepreneurial networking, which was operationalised through personal networking, social

networking, operational networking, and strategic networking. Section C measured performance of micro

enterprises, focusing on business growth indicator. The questionnaire was administered through direct physical

visits to respondents with the assistance of 10 trained research assistants who were familiar with local languages

and cultural contexts to improve response accuracy. Instrument validity was ensured through face validity by

experts in research methodology, content validity to confirm adequate coverage of all constructs, and construct

validity to ensure the instrument measured the intended theoretical concepts accurately.

Reliability of the instrument was established through expert review and a test-retest pilot study involving 100

micro enterprise owners selected outside the main study area. The questionnaire was administered twice within

a two-week interval to minimise recall bias and ensure stability of responses over time. Feedback from the pilot

study helped refine unclear items. Cronbach’s Alpha results confirmed strong internal consistency for all

constructs, including personal networking (α = .847), social networking (α = .846), operational networking (α =

.824), strategic networking (α = .851), and performance (α = .733). Data collected were analysed using

descriptive statistics such as frequencies and percentages, while inferential analysis was conducted using

multiple regression analysis with the aid of SPSS version 25.

Research Model Specification

The study was based on the following overall regression model:

PME = β

+ β

PEN + β

SON + β

OPN + β

STN + εi

Where:

PME = Performance of micro enterprises

PEN = Personal networking

Page 1362

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026

SON = Social networking

OPN = Operational networking

STN = Strategic networking

= Constant

, β

= Regression Coefficients

εi = Stochastic error term.

RESULTS AND DISCUSSION

A total of 520 copies of questionnaire were administered to respondents, out of which 490 were properly

completed and returned, giving a response rate of 94.2%. All retrieved copies were fully completed, as trained

research assistants assisted respondents to ensure clarity and accuracy in their responses. The demographic

profile of micro enterprise owners in Osun State, Nigeria offered important insights into their entrepreneurial

networking patterns and the performance outcomes of their businesses.

The demographic characteristics of the respondents revealed a slightly higher participation of male micro

enterprise owners, with 261 (53.3%) compared to 229 (44.7%) females, indicating a relatively balanced gender

representation that could support varied entrepreneurial perspectives in networking and performance of micro

enterprise owners. The age distribution showed that most respondents were within the 28–37 years bracket

(39.6%), followed closely by 38–47 years (35.1%), suggesting that the majority were within their economically

active and innovation-sensitive age groups, while fewer respondents fell within the older age categories. In terms

of educational qualification, a significant proportion held HND/Degree certificates (45.7%), followed by

NCE/ND holders (26.3%) and O’Level (24.1%), indicating a moderately educated population with potential

capacity to adopt entrepreneurial networking practices. Regarding years of business operation, most respondents

had between 20–29 years of experience (55.3%), reflecting a relatively experienced entrepreneurial base with

established business structures. Sectoral distribution showed dominance in retail (33.7%) and services (29.0%),

followed by agriculture (19.2%) and crafts/ICT (18.1%), suggesting that networking activities were concentrated

in sectors where market interaction and relationship-building significantly influenced enterprise performance.

Testing of Hypothesis

Table 1: Regression Diagnostic Test

Diagnostic Test

Test Statistic/Range

Criterion

VIF

1.953 - 2.837

VIF < 5

Tolerance Values

0.374 - 0.533

T < 0.1

Shapiro-Wilk Normality Test

P = 0.418

P > 0.05

Kolmogorov-Smirnov Normality Test

P = 0.174

P > 0.05

Condition Index

10.107 - 13.259

CI > 15

Durbin-Watson

1.902

DW ᵙ 2.0

Source: Field Survey, 2026

Table 1 presents the regression diagnostic results validating the assumptions for reliable estimation of the effect

of entrepreneurial networking on the performance of micro enterprises in Osun State, Nigeria. The VIF values

ranging from 1.953 to 2.837, alongside tolerance values between 0.374 and 0.533, confirmed absence of

multicollinearity among the explanatory variables since they satisfied the recommended thresholds. The

Page 1363

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026

Shapiro-Wilk (P = 0.418) and Kolmogorov-Smirnov (P = 0.174) normality tests indicated normally distributed

residuals, supporting model suitability. Furthermore, the condition index values of 10.107 to 13.259 suggested

no harmful collinearity issues, while the Durbin-Watson statistic of 1.902 indicated absence of autocorrelation,

thereby affirming robustness and consistency of the regression estimates.

Table 2a: Model Summary

Model

R Square

Adjusted R Square

Std. Error of the Estimate

.864

.746

.743

.463

a. Predictors: (Constant), Personal, social, operational, strategic networkings

The regression results presented in Table 2a revealed a strong positive relationship between entrepreneurial

networking dimensions and the performance of micro enterprises in Osun State, Nigeria, as indicated by the

correlation coefficient (R) of 0.864. The coefficient of determination (R²) of 0.746 showed that 74.6% of the

variations in micro enterprise performance were jointly explained by personal, social, operational, and strategic

networking variables included in the model. The adjusted R² value of 0.743 further confirmed that the model

retained substantial explanatory strength after adjusting for the multiple predictors, indicating model stability

and reliability. In addition, the standard error of the estimate of 0.463 suggested minimal prediction error and

satisfactory model fit. Therefore, the results demonstrated that entrepreneurial networking significantly

influenced the performance of micro enterprises, leading to the rejection of the null hypothesis.

Table 2b: ANOVA

Model

Sum of Squares

Mean Square

Sig.

Regression

174.290

42.723

246.685

.000

Residual

72.798

485

.173

Total

247.088

489

a. Dependent Variable: Performance of micro enterprises

b. Predictors: (Constant), Personal, social, operational, strategic networkings

The ANOVA results revealed that the regression model was statistically significant (F = 246.685, p = .000),

indicating that entrepreneurial networking exerted a significant effect on the performance of micro enterprises

in Osun State, Nigeria. The regression sum of squares (174.290) compared with the residual sum of squares

(72.798) showed that a considerable proportion of the variation in enterprise performance was explained by the

combined influence of personal, social, operational, and strategic networking dimensions. In addition, the

regression mean square (42.723) was substantially higher than the residual mean square (.173), demonstrating

the strong explanatory strength and adequacy of the model in predicting enterprise performance. Since the

probability value was lower than the accepted 0.05 significance threshold, the null hypothesis was rejected, and

it was concluded that entrepreneurial networking significantly influenced the performance of micro enterprises

in Osun State, Nigeria.

Table 2c: Coefficients

Model

Unstandardized

Coefficients

Standardized

Coefficients

Sig.

Std. Error

Beta

(Constant)

0.581

0.218

4.187

.000

Personal networking

0.619

0.639

0.508

3.121

.002

Social networking

0.755

0.742

0.554

1.204

.001

Operational networking

0.829

0.641

0.752

7.689

.000

Page 1364

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026

Startegic networking

0.884

0.842

0.830

9.139

.000

a. Dependent Variable: Performance of micro enterprises

The coefficient estimates presented in Table 2c revealed that entrepreneurial networking dimensions exerted

positive and statistically significant effect on the performance of micro enterprises in Osun State, Nigeria.

Specifically, personal networking had a positive and significant effect on enterprise performance (B = 0.619, p

= 0.002), indicating that stronger personal relationships enhanced performance of micro enterprises. Social

networking also demonstrated a positive significant effect (B = 0.755, p = 0.001), suggesting that social

interactions and connections contributed positively to enterprise performance. Operational networking exhibited

a stronger and statistically significant effect (B = 0.829, p = 0.000), implying that operational collaborations

improved business efficiency and performance. Furthermore, strategic networking recorded the highest positive

and significant contribution (B = 0.884, p = 0.000), reflecting its substantial influence on enterprise growth and

sustainability. Consequently, the null hypothesis was rejected, confirming that entrepreneurial networking

significantly affected the performance of micro enterprises in Osun State, Nigeria.

DISCUSSION OF FINDINGS

The regression and ANOVA results revealed that entrepreneurial networking had a strong and statistically

significant effect on the performance of micro enterprises in Osun State, Nigeria, which resulted in the rejection

of the null hypothesis. The model summary showed a high explanatory power (R = 0.864; R² = 0.746), indicating

that personal, social, operational, and strategic networking jointly explained a substantial proportion of the

variations in enterprise performance. The significant F-statistic (F = 246.685, p = 0.000) further confirmed the

fitness and reliability of the regression model. This finding agreed with Li and Shafait (2025) and Akinwale and

Oluwafemi (2023), who established that entrepreneurial networking significantly improved sales growth, market

expansion, customer retention, and overall business performance among micro enterprises. The result supported

the social capital theory, which explained that relationships and social ties served as valuable resources that

enhanced enterprise outcomes. It also aligned with network theory, which emphasised that business networking

created access to opportunities, information, and support necessary for enterprise sustainability and growth.

Regarding the first specific objective, personal networking exerted a positive and significant effect on the

performance of micro enterprises (B = 0.619, p = 0.002). This indicated that stronger personal relationships,

trust, and interpersonal connections enhanced enterprise growth and operational performance. The finding was

consistent with Pila (2025) and John (2024), who found that personal networking significantly improved

enterprise growth, innovation, and market access through stronger professional and social relationships. The

finding further supported social capital theory because personal ties increased trust and facilitated exchange of

useful business information and resources. network theory also explained that entrepreneurs with broader

personal networking gained greater access to opportunities that enhanced enterprise performance.

For the second specific objective, social networking had a positive and significant effect on micro enterprise

performance (B = 0.755, p = 0.001). This implied that social interactions and online networking platforms

improved customer relations, visibility, and market reach. The result aligned with Dwumah and Amaniampong

(2024) and Oyewobi et al. (2023), who showed that social networking and social media adoption significantly

enhanced customer engagement and enterprise performance. The finding reinforced social capital theory by

demonstrating that social relationships generated access to customers and business support systems. network

theory equally explained that social networking strengthened communication channels and expanded market

opportunities for enterprises.

Operational networking also recorded a positive and significant effect on enterprise performance (B = 0.829, p

= 0.000). This suggested that collaboration with suppliers, partners, and operational stakeholders improved

resource access, knowledge sharing, and business sustainability. The finding agreed with Mayanja et al. (2025)

and Ajirowo (2024), who established that operational networking enhanced enterprise performance through

effective resource coordination and strengthened operational efficiency. This outcome reflected the assumptions

of social capital theory and network theory, which emphasised collaboration and resource exchange as essential

drivers of enterprise success.

Page 1365

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026

Finally, strategic networking exerted the strongest positive and significant effect on enterprise performance (B

= 0.884, p = 0.000). This showed that strategic alliances and institutional relationships improved access to

markets, finance, and growth opportunities. The finding validated the studies of Abubakar and Yusuff (2025)

and Ojo and Akinwale (2024), who revealed that strategic networking significantly enhanced market access and

financial opportunities among micro enterprises. The result further supported social capital theory and network

theory because strategic relationships increased entrepreneurs’ access to external support, competitive

advantages, and long-term business sustainability.

CONCLUSION AND POLICY RECOMMENDATIONS

The study concluded that entrepreneurial networking exerted a significant and substantial effect on the

performance of micro enterprises in Osun State, Nigeria, as evidenced by the high explanatory power of the

model (R² = 0.746) and the statistical significance of the regression and ANOVA results, leading to the rejection

of the null hypothesis. In relation to the main objective, the combined effect of personal, social, operational, and

strategic networking enhanced enterprise performance through improved access to resources, information, and

business opportunities. Specifically, personal networking improved performance through trust-based

relationships and stronger interpersonal ties; social networking enhanced visibility, customer engagement, and

market reach; operational networking strengthened efficiency through collaboration and resource sharing; while

strategic networking contributed most significantly by improving access to markets, finance, and long-term

growth opportunities. Based on these conclusions, it was recommended that micro enterprise owners should

deliberately build and maintain strong personal relationships by actively engaging in community and business

associations. They should also strengthen social networking activities, especially through consistent interaction

on digital and physical platforms to expand customer base and visibility. Operational networking should be

improved through partnerships with suppliers and business stakeholders to enhance resource access and

efficiency, while strategic networking should be prioritised through alliances with financial institutions, market

intermediaries, and industry groups to secure funding and expansion opportunities. Furthermore, targeted

training on effective networking skills should be encouraged to sustain competitive advantage and long-term

enterprise growth.

Policy Implication and Limitations

The findings implied that policymakers, enterprise development agencies, and other stakeholders in Osun State

should prioritise support policies that strengthen entrepreneurial networking through structured mentorship

schemes, networking forums, and capacity-building initiatives that enhance personal, social, operational, and

strategic linkages, as these significantly improved micro enterprise performance. Support policies should also

encourage affordable access to business platforms and collaborative opportunities that expand market reach and

resource sharing. However, the study was limited to micro enterprises in Osun State, which constrained broader

generalisation of the findings. Future studies were recommended to cover wider geographical areas and include

additional contextual variables for deeper insights.

REFERENCES

1. Adebayo, T. (2024). MSME classification and policy alignment in Nigeria. Journal of African

Development Studies, 12(1), 45–60.

2. Adepoju, A., Alabi, T., & Sanni, M. (2024). Organisational support and employee outcomes in emerging

enterprises. Journal of Business Research in Developing Economies.

3. Agbemude, S., Nuertey, D., & Poku, E. (2025). Entrepreneurial orientation and supply chain

performance: The roles of entrepreneurial competence and local community networking. Benchmarking:

An International Journal.

https://doi.org/10.1108/BIJ-12-2023-0862

4. Ajirowo, W. O. (2024). Assessment of entrepreneurial ecosystems and SMEs' growth in Ilorin

Metropolis, Kwara State. African Journal of Management and Business Research.

https://afropolitanjournals.com/index.php/ajmbr/article/view/331

Page 1366

www.rsisinternational.org

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026

5. Akinwale, O. (2024). Measuring MSME performance in Nigeria: Institutional perspectives. Nigerian

Journal of Entrepreneurship Studies, 9(2), 55–70.

6. Akinwale, T. O., & Oluwafemi, A. A. (2023). Entrepreneurial networking and performance of micro

enterprises in Lagos State, Nigeria. International Journal of Entrepreneurship and Small Business

Research, 15(2), 88–101.

7. Alshebami, A. S. (2024). Surviving the storm: The vital role of entrepreneurs' network ties and recovering

capabilities in supporting the intention to sustain micro and small enterprises. Sustainability, 16(19),

8474. https://doi.org/10.3390/su16198474

8. Bourdieu, P. (1986). The forms of capital. In J. Richardson (Ed.), Handbook of theory and research for

the sociology of education (pp. 241–258). Greenwood Press.

9. Burt, R. S. (1992). Structural holes: The social structure of competition. Harvard University Press.

10. Castells, M. (1996). The rise of the network society. Blackwell Publishers.

11. Charisma, D., Hermanto, B., Purnomo, M., & Herawati, T. (2025). Sustainable business through local

strength: A qualitative study of financial, social, and cultural strategies in micro-enterprises.

Sustainability, 17(11), 5028.

12. Chooset, N., & Sukhabot, S. (2025). Developing entrepreneurial marketing dimensions for SMEs in the

digital era: A grounded theory approach. Cogent Business & Management, 12(1), 2480748.

https://doi.org/10.1080/23311975.2025.2480748

13. Coleman, J. S. (1988). Social capital in the creation of human capital. American Journal of Sociology,

94, S95–S120.

https://doi.org/10.1086/228943

14. Corbeanu, A., & Iliescu, D. (2023). Employee engagement and performance: A meta-analytic

perspective. Personality and Individual Differences, 203, 112045.

https://doi.org/10.1016/j.paid.2023.112045

15. Daskalopoulou, I., Karakitsiou, A., & Thomakis, Z. (2023). Social entrepreneurship and social capital:

A review of impact research. Sustainability, 15(6), 4787.

16. Doan, H. Q., Masciarelli, F., Prencipe, A., & Vu, N. H. (2023). Social capital and firm performance in

transition economies. Eurasian Business Review, 13(2), 245–267.

17. Dwumah, P., Amaniampong, E. M., & Ocloo, C. E. (2024). Association between entrepreneurial

orientation and the performance of small and medium enterprises in Ghana: The role of network ties.

Cogent Business & Management, 11(1).

https://doi.org/10.1080/23311975.2024.2302192

18. Franco, M., & Haase, H. (2024). Networking and SMEs performance: Revisiting relational

embeddedness. Small Business Economics, 62(2), 487–503.

https://doi.org/10.1007/s11187-023-00789-

19. Gao, J., Cheng, Y., He, H., & Gu, F. (2023). The mechanism of entrepreneurs’ social networks on

innovative startups’ innovation performance considering the moderating effect of entrepreneurial

competence. Entrepreneurship Research Journal.

https://doi.org/10.1515/erj-2020-0541

20. Granovetter, M. S. (1973). The strength of weak ties. American Journal of Sociology, 78(6), 1360–1380.

https://doi.org/10.1086/225469