Effect of Entrepreneurial Personality Traits on the Performance of Small-Scale Enterprises in Oyo State, Nigeria

Small-scale enterprises (SSEs) remain critical drivers of employment generation, innovation, and economic growth, however, their performance in Nigeria has continued to fluctuate due to managerial, environmental, and behavioural constraints. Increasing attention has therefore been directed toward entrepreneurial personality traits as determinants of enterprise success, yet empirical evidence on how such traits affect performance outcomes remains limited. This study was consequently undertaken to assess the effect of entrepreneurial personality traits on the performance of SSEs in Oyo State, Nigeria. Specifically, the study examined the effect of risk tolerance, entrepreneurial alertness, internal locus of control, and need for achievement on SSE performance. The study adopted a descriptive survey research design, and primary data were collected using a structured questionnaire administered to SSE owners. The population comprised 6,039 registered SSE owners operating across sectors as reported by the National Bureau of Statistics (2017), from which a sample size of 361 respondents was drawn using Krejcie and Morgan’s sampling formula. Data were analysed using descriptive statistics, including frequency and percentage, alongside multiple regression analysis. The findings revealed a strong positive correlation (R = .878) with an R-square value of .770, indicating that 77% of the variation in business growth performance was explained by entrepreneurial personality traits. Risk tolerance (0.792), entrepreneurial alertness (0.686), internal locus of control (0.761), and need for achievement (0.751) each demonstrated significant positive relationships with SSE performance. The study concluded that entrepreneurial personality traits significantly affected SSE performance and recommended integrating personality development into enterprise support programmes and policy initiatives.   

Entrepreneurial alertness, entrepreneurial trait, internal locus of control, need for achievement, risk tolerance

1. Abodunde, S. M. (2024). Leveraging entrepreneurial orientation for the performance of small and medium enterprises (SMEs): Evidence from Oyo State, Nigeria. Journal of Economics, Management & Business Administration, 3(2), 25–37. [Google Scholar] [Crossref]

2. Adeleke, A. O., Omotayo, O. O., & Olajide, O. A. (2022). Entrepreneurial resilience and business sustainability in Nigeria. Journal of Business Research, 58(4), 230-245. [Google Scholar] [Crossref]

3. Adeleke, A. O., Omotayo, O. O., & Olajide, O. A. (2023). Internal locus of control and business success in Nigeria: A focus on small-scale enterprises. Journal of Entrepreneurship and Innovation, 15(2), 221-234. https://doi.org/10.1016/j.jei.2023.02.005 [Google Scholar] [Crossref]

4. Adegbite, T. A., & Lawal, M. O. (2022). The role of entrepreneurial traits in small business performance: A theoretical perspective. Journal of Entrepreneurship and Business Studies, 5(3), 45–60. https://doi.org/10.1016/j.jebs.2022.03.00 [Google Scholar] [Crossref]

5. Akinwale, O. A., & Olayemi, B. K. (2023). Trait-based approach to entrepreneurial success: Reassessing personality determinants. International Review of Business and Economics, 8(1), 112– 129. https://doi.org/10.1080/IRBE.2023.08.001 [Google Scholar] [Crossref]

6. Ahmed, A., Bello, I., Idris, M., & Yusuf, R. (2023). Influence of entrepreneurial personality traits on the performance of Small and Medium Enterprises (SMEs) in Lagos, Nigeria. Journal of Business and Entrepreneurship Studies, 12(3), 45-63. [Google Scholar] [Crossref]

7. Alabi, A. O., & Sanya, D. O. (2024). Exploring personality traits and entrepreneurial success in small scale enterprises. Journal of Entrepreneurship Studies, 8(1), 24-35. [Google Scholar] [Crossref]

8. Alabi, O. D., & Sanya, E. O. (2024). Personality inclination and emotional flexibility on business performance among small and medium enterprises (SMEs) in Oyo State, Nigeria. Multidisciplinary Journal of Management Sciences, 1(1), 13–18. https://www.researchgate.net/publication/373295109_Multidisciplinary_Journal_of_Man agement_Sciences_httpsafarsorgresearchjournals_Personality_Inclination_and_Emotiona l_Flexibility_on_Business_Performance_among_Small_and_Medium_Enterprises_SMEs _in_Oyo_ [Google Scholar] [Crossref]

9. Chen, Y., Wang, T., & Zhang, Y. (2021). The relationship between internal locus of control and entrepreneurial behavior: Evidence from China. Asian Business & Management, 20(4), 401-420. [Google Scholar] [Crossref]

10. Cheng, Z., Zhang, H., & Xu, W. (2023). The influence of entrepreneurial alertness on business performance in emerging markets. Journal of Small Business Management, 61(2), 235- 251. [Google Scholar] [Crossref]

11. Dany, L., Malmström, M., & Zhao, H. (2021). Entrepreneurial alertness and opportunity recognition in global markets. International Journal of Entrepreneurial Behavior & Research, 27(3), 670-688. https://doi.org/10.1108/IJEBR-01-2020-0073 [Google Scholar] [Crossref]

12. Elegunde, A., Okunbanjo, A., & Afolabi, O. (2024). The role of personality traits in business model innovation and value creation in SMEs. Journal of Small Business Innovation, 17(2), 190- 201. [Google Scholar] [Crossref]

13. Elegunde, A. F., Okunbanjo, O. I., & Afolabi, B. K. (2024). Personality traits and entrepreneurial performance of small businesses. International Journal of Entrepreneurial Knowledge, 12(2), 78–92. https://doi.org/10.37335/ijek.v12i2.246 [Google Scholar] [Crossref]

14. Gholami, R., Haghshenas, H., & Saeed, M. (2021). Entrepreneurial personality traits and risk tolerance: A study of small businesses in Iran. Journal of Small Business Management, 59(2), 248267. https://doi.org/10.1080/00472778.2021.1883445 [Google Scholar] [Crossref]

15. Hamzah, M. I., & Othman, A. K. (2023). How do locus of control influence business and personal success? The mediating effects of entrepreneurial competency. Frontiers in Psychology, 13, 958911. [Google Scholar] [Crossref]

16. Hasan, S., Shah, T., & Noor, H. (2021). The role of achievement motivation in enhancing small business performance. Journal of Entrepreneurship Research, 27(4), 347-360. [Google Scholar] [Crossref]

17. Jong, J., Liu, S., & Zhai, Z. (2020). Entrepreneurial traits and the success of small enterprises: A study of the Chinese context. Asia Pacific Journal of Management, 37(4), 915-931. [Google Scholar] [Crossref]

18. Koech, J., & Kamau, M. (2020). Examining the role of personality traits in entrepreneurial performance in European SMEs. European Journal of Business and Management, 12(1), 54-67. [Google Scholar] [Crossref]

19. Kovács, L., Ács, Z. J., & Károlyi, K. (2022). The role of risk tolerance in entrepreneurial decision making: Evidence from Hungary. International Journal of Entrepreneurial Behaviour & Research, 28(5), 673-687. https://doi.org/10.1108/IJEBR-07-2021-0465 [Google Scholar] [Crossref]

20. Lee, S. H., & Wong, P. K. (2020). Entrepreneurial personality traits and business success in small- scale enterprises. International Journal of Entrepreneurial Behaviour & Research, 26(6), 1249-1267. https://doi.org/10.1108/IJEBR-05-2020-0279 [Google Scholar] [Crossref]

21. Liu, S., Wang, C., & Zhang, L. (2020). The impact of need for achievement on entrepreneurial success: A cross-cultural study. International Journal of Entrepreneurial Behavior & Research, 26(5), 933-947. https://doi.org/10.1108/IJEBR-11-2019-0390 [Google Scholar] [Crossref]

22. Martins, A., Silva, P., & Oliveira, R. (2022). The impact of risk tolerance on the performance of smallscale enterprises in Brazil. Journal of Small Business Management, 60(2), 256-271. [Google Scholar] [Crossref]

23. Muthomi, G., Ngugi, G., & Ndirangu, K. (2022). The influence of entrepreneurial alertness on the performance of small-scale enterprises in Nairobi, Kenya. Journal of Small Business and Entrepreneurship Development, 5(2), 45-61. [Google Scholar] [Crossref]

24. Nwafor, F. O., & Okafor, A. R. (2022). Creativity as a key driver of innovation in small-scale enterprises. International Journal of Innovation and Business Strategy, 5(2), 12-22. [Google Scholar] [Crossref]

25. Oduro, F. T., Asare, B. K., & Appiah, K. (2022). Risk-taking and entrepreneurial success: Evidence from small-scale enterprises in Ghana. Journal of Small Business Management, 60(4), 733-750. https://doi.org/10.1111/jsbm.12490 [Google Scholar] [Crossref]

26. Ogunleye, O. E., & Akinbo, A. A. (2023). Innovation and entrepreneurship in Nigeria's dynamic market. Entrepreneurship and Innovation Review, 12(1), 65-78. [Google Scholar] [Crossref]

27. Ojo, A. I., Alabi, A. O., & Adebayo, B. O. (2023). Entrepreneurial self-efficacy and small business performance: A systematic review. Journal of Entrepreneurship and Innovation, 10(2), 100-114. [Google Scholar] [Crossref]

28. Ojo, O. O., & Okafor, G. C. (2023). Risk-taking and business performance in Nigeria’s emerging markets. African Business Review, 7(2), 135-147. [Google Scholar] [Crossref]

29. Oluwatobi, O. F., & Olayinka, A. O. (2022). The role of self-efficacy in entrepreneurial success: Evidence from Nigeria. International Journal of Business Studies, 34(3), 456-472. [Google Scholar] [Crossref]

30. Rotter, J. B. (2021). Internal versus external control of reinforcement: A case history of a variable. [Google Scholar] [Crossref]

31. a. Psychology Press. [Google Scholar] [Crossref]

32. SMEDAN/NBS (2017). Survey report on small and medium enterprises in Nigeria. NBS. [Google Scholar] [Crossref]

33. Sikander, S., Khan, F., & Shabbir, A. (2022). Locus of control and entrepreneurial performance in smallscale businesses: An empirical study. Journal of Small Business and Entrepreneurship, 34(3), 203-217. [Google Scholar] [Crossref]

34. Tsegaye, A., & Teka, M. (2022). Entrepreneurial traits and their influence on business sustainability: Evidence from Ethiopia. Business and Economic Research Journal, 12(2), 213-225. [Google Scholar] [Crossref]

35. Yunusa, Z.F., Aminu, M., Badara, M.S., & Naala, N. (2022). Moderating effect of need for achievement on the relationship between entrepreneurial orientation and performance of small and medium enterprises in Gombe state. Journal of Entrepreneurship and Innovation Research, 1(1), 6285. [Google Scholar] [Crossref]

36. Zhao, H., Seibert, S. E., & Lumpkin, G. T. (2021). The impact of entrepreneurial personality traits on the performance of small businesses. Journal of Business Venturing, 36(3), 293-311. [Google Scholar] [Crossref]

37. Zhou, J., Zhang, P., & Yang, M. (2020). Risk tolerance and entrepreneurship: Evidence from China. Asia Pacific Journal of Management, 37(3), 731-753. [Google Scholar] [Crossref]

• Drone-Based Phenotyping and its Utilization in Crop Improvement: A Review
• An IoT-Enabled Smart Healthcare Monitoring System Using Machine Learning for Early Health Risk Prediction
• Strategic Integration of Artificial Intelligence for Achieving Operational Excellence in Container Freight Stations Using Evidence from Chennai, India
• Adoption of OTT platforms: Analyzing User Behavior through the UTAUT2 Model
• Customers’ Buying Behaviour in Relation to Online Food Delivery (Evidence from National Capital Region (NCR) of India)