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THE EFFECT OF ENTREPRENEURIAL CHARACTERISTICS ON THE PROFITABILITY OF MICRO, SMALL AND MEDIUM SCALE ENTERPRISES IN KADUNA

A b s t r a c t

The growth and development of micro, small and medium enterprises (MSMEs) has been a focus for policy makers and researchers in the developed and developing countries. Review of extant literature revealed that the ability of the MSMEs to achieve higher profitability has been inhibited by lack of relevant characteristics on the part of the entrepreneurs. This study therefore investigates the effect of self-efficacy, risk taking and locus of control on the profitability of micro, small and medium scale businesses in Kaduna state. Survey research design was employed in the study which is cross sectional in nature. Primary data was collected through questionnaire administration. The data was collected from a sample of 174 drawn from a population of 201 MSMEs. The study employed stratified and simple random sampling technique in selecting the samples and the unit of analysis was the ownermanagers representing each MSME. Inferential statistics was used to analyze the data collected from the field with the aid of Statistical Package for Social Sciences (SPSS) version 20. Multiple regression analysis was used to test the hypotheses formulated for the study. The findings revealed that self-efficacy, risk taking and locus of control all have significant positive effect on the profitability of MSMEs in Kaduna State. The study concluded that entrepreneurial characteristics lead to higher profitability of MSMEs in Kaduna state. The study recommended that a combined effort by governments at all levels and Non-Governmental Organizations (NGOs) are required towards capacity building for the entrepreneurs to enhance and appreciate their inborn personalities and traits for higher profitability.

Keywords: Entrepreneurship, Entrepreneurial characteristics, Profitability

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