EFFECT OF ENTREPRENEURIAL ORIENTATION AND SAFETY CULTURE ON BUSINESS PERFORMANCE AMONG SELECTED SMALL AND MEDIUM ENTERPRISES (SMEs) IN SOUTH WEST NIGERIA

Abstract

This study investigates the effect of entrepreneurial orientation and safety culture on business performance among selected small and medium-sized enterprises (SMEs) in South West Nigeria. Despite extensive research on each variable independently, limited empirical attention has been paid to their combined influence on SME performance within the Nigerian context. A survey research design was adopted, using a structured questionnaire to collect data from selected SMEs across Lagos, Ogun, Osun, Oyo, Ondo, and Ekiti States. Data were analyzed using descriptive statistics and multiple regression analysis. Findings from the result of multiple regression results reveal that entrepreneurial orientation variables explain 85.0% of the variance in business performance (R² = 0.850, Adjusted R² = 0.849, F = 554.345, p < 0.01), with innovativeness (t = 10.587), proactiveness (t = 13.847), risk-taking (t = 45.654), and competitive aggressiveness (t = 2.665) showing significant positive effects, while autonomy (t = -0.216) was not significant. Similarly, safety culture variables account for 82.3% of the variance in performance (R² = 0.823, Adjusted R² = 0.822, F = 478.215, p < 0.01), with management commitment (t = 10.517), employee training (t = 13.405), safety communication (t = 3.993), and hazard control (t = 5.967) having significant positive effects, while employee involvement (t = 0.844) was not statistically significant. The study concludes that the integration of entrepreneurial orientation and safety culture significantly enhances business performance. It recommends that SME owners foster innovation and strategic risk-taking while embedding strong safety practices and leadership commitment to improve operational efficiency and competitiveness.