PROACTIVE ORIENTATION AND PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN DELTA STATE, NIGERIA
The performance of Small and Medium Enterprises (PSMEs) is critical to economic growth, employment generation, and poverty alleviation, particularly in developing economies like Nigeria. However, SMEs often struggle with sustainability and competitiveness due to external uncertainties, resource constraints, and managerial inefficiencies. Proactive orientation, characterized by Goal Setting and Planning (GSP), Initiative Taking (INT), Anticipating Challenges and Threats (ACT), and Learning and Adaptation (LA), has been recognized as a strategic approach that enhances performance SME (PSME). The study adopted a quantitative research design and a total of three hundred and ninety (390) questionnaires were administered to SME owners and managers in Delta State, Nigeria. However, three hundred and sixty-eight (368) were retrieved and properly filled, it represent 94.36 percent of the total questionnaire administered, which shows that three hundred and sixty-eight (368) respondents is sufficient for the study. The data was analyzed using descriptive statistics, correlation analysis and multiple regression analysis. The descriptive statistics revealed that SMEs exhibited varying levels of proactive orientation, with INT having the highest mean score (17.01), followed by GSP (16.33), ACT (16.00), and LA (15.61). The correlation analysis showed significant positive relationships between proactive orientation dimensions and PSME, indicating that businesses that engage in proactive behaviours tend to perform better. The regression analysis provided further empirical validation of these relationships. GSP had a positive and significant effect on PSME (β = 0.064, t = 2.207, p = 0.014), demonstrating that structured goal setting enhances business efficiency. INT showed the highest impact on PSME (β = 0.120, t = 4.444, p < 0.001), indicating that SMEs that take initiative in identifying and capitalizing on market opportunities are more likely to thrive. ACT had a significant effect on PSME (β = 0.110, t = 4.231, p < 0.001), emphasizing the importance of environmental scanning and risk management in business sustainability. Similarly, LA had a significant positive effect on PSME (β = 0.113, t = 4.141, p < 0.001), highlighting the role of continuous learning and adaptability in maintaining competitiveness. The model explained 77.1% of the variance in PSME (R² = 0.771), confirming the strong predictive power of proactive orientation in business success. The study concluded that proactive orientation is a critical determinant of PSME in Delta State, Nigeria. The study recommends that SME operators invest in strategic planning, cultivate an innovative mindset, develop risk management strategies, and foster continuous learning to enhance their business success. The study contributes to knowledge by providing empirical evidence on the role of proactive orientation in SME performance and offers practical implications for entrepreneurship development.
Keywords: Proactive Orientation, Goal Setting and Planning, Initiative Taking, Learning and Adaptation and Anticipating Challenges and Threats
