Impact of entrepreneurial innovation and creativity on small and medium enterprises performance in Nigeria

This study investigated the relationship between entrepreneurial innovation and creativity on the performance of Small and Medium Enterprises (SMEs) in Nigeria. Specifically, the study aimed to evaluate the innovative ability in business sustainability, the influence of creative thinking on business expansion in SMEs. Descriptive survey research design was used. The population comprised SMEs of Lagos State, Nigeria. Using purposive random sampling and the Raosoft Sample Size Formula, a sample size of 372 respondents was obtained. Questionnaires were used to gather primary data and regression analysis used for data analysis. The results from the first hypothesis showed that innovative ability had a significant effect on the sustainability of businesses among SMEs. The coefficient of determination (R² = 0.275) was found that 27.5% of the variation in business sustainability could be explained by innovative ability and a moderate-to-strong relationship was found from the standardized coefficient (Beta = 0.525). The results of the second hypothesis indicate that creative thinking has a significant effect on business expansion of SMEs. The coefficient of determination (R² = 0.264) showed that the variance of SME expansion could be explained by creative thinking by 26.4%. The standardized coefficient (Beta = 0.514) showed that there was a moderate-to-strong positive relationship between creative thinking and SME expansion. The study found that innovation and creativity are significant factors influencing success of the SMEs in Lagos State. It suggested ongoing trainings and workshops in order to enhance the innovative and creative skills for sustainable growth and development.

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