International Journal Of Management And Economics Fundamental
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VOLUME
Vol.05 Issue08 2025
PAGE NO.
1-11
Strategic Entrepreneurial Approaches and Their
Influence on the Competitive Posture of Small-Scale
Enterprises in South-South Nigeria
Dr. Ebiere T. Briggs
Department of Business Administration, University of Port Harcourt, Rivers State, Nigeria
Prof. Godwin U. Okon
Faculty of Management Sciences, University of Calabar, Cross River State, Nigeria
Received:
03 June 2025;
Accepted:
02 July 2025;
Published:
01 August 2025
Abstract:
Small-scale businesses are pivotal drivers of economic growth, employment generation, and innovation
in developing economies. However, their long-term survival and prosperity are intrinsically linked to their ability
to achieve and sustain a competitive advantage in dynamic and often challenging market environments. This
article explores the profound influence of strategic entrepreneurship on the competitiveness of small-scale
businesses, with a specific focus on the South-South region of Nigeria. Strategic entrepreneurship, a synergistic
integration of entrepreneurial (opportunity-seeking) and strategic (advantage-seeking) behaviors, offers a
powerful framework for businesses to simultaneously identify novel opportunities and develop sustainable
competitive positions. Drawing upon resource-based theory and entrepreneurial orientation concepts, this study
synthesizes existing literature to elucidate how strategic entrepreneurial practices
–
encompassing innovation,
proactiveness, risk-taking, strategic renewal, and resource leveraging
–
can enhance market responsiveness,
foster unique capabilities, and ultimately improve the competitive posture of small-scale enterprises. The article
highlights the contextual factors prevalent in South-South Nigeria that necessitate such an approach and
concludes with recommendations for business owners and policymakers aimed at fostering a more strategically
entrepreneurial and competitive SME sector.
Keywords:
Strategic Entrepreneurship, Competitiveness, Small-Scale Businesses, Small and Medium Enterprises
(SMEs), Nigeria, South-South Region, Entrepreneurial Orientation, Resource-Based View.
Introduction:
Small-scale businesses, often referred to
as Small and Medium Enterprises (SMEs), constitute
the bedrock of most economies worldwide, particularly
in developing nations. In Nigeria, these enterprises are
widely acknowledged as critical engines for economic
growth, job creation, poverty alleviation, and fostering
indigenous technological development [1, 5, 34]. They
serve as vital conduits for wealth distribution, provide
essential goods and services, and act as incubators for
innovation and entrepreneurial talent [28]. Despite
their undeniable significance, small-scale businesses in
Nigeria, and indeed across many emerging markets,
frequently grapple with a myriad of challenges that
impede their growth, stability, and long-term viability.
These challenges include limited access to finance,
inadequate infrastructure, intense competition,
volatile market conditions, and a lack of managerial and
strategic capabilities [12, 18].
In an increasingly dynamic, complex, and competitive
global marketplace, the ability of any business,
regardless of size, to achieve and sustain a competitive
advantage is paramount for survival and prosperity [26,
27]. For small-scale businesses, which often operate
with limited resources and face formidable competition
from larger, more established firms, developing and
maintaining this competitive edge becomes an
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International Journal Of Management And Economics Fundamental (ISSN: 2771-2257)
existential imperative. Traditional approaches to
business management, which might emphasize either
pure entrepreneurial agility or rigid strategic planning,
often fall short in addressing the multifaceted demands
of contemporary markets. This necessitates a more
integrated and dynamic approach that combines the
best of both worlds.
This is where the concept of strategic entrepreneurship
becomes critically relevant. Strategic entrepreneurship
(SE) is an emerging field that bridges the gap between
traditional
strategic
management
and
entrepreneurship. It is defined as the simultaneous
pursuit of opportunity and advantage [16]. This dual
focus implies that businesses must not only be adept at
identifying and exploiting novel opportunities
(entrepreneurial dimension) but also at developing and
leveraging unique resources and capabilities to create
sustainable
competitive
advantages
(strategic
dimension) [7, 13]. For small-scale businesses, adopting
a strategic entrepreneurial mindset and implementing
its practices can be a powerful differentiator, enabling
them to navigate uncertainties, innovate effectively,
and carve out defensible market positions.
The South-South region of Nigeria, characterized by its
unique economic landscape, including significant oil
and gas activities, diverse agricultural potential, and a
burgeoning informal sector, presents a compelling
context for examining the influence of strategic
entrepreneurship. Businesses in this region often
operate within a challenging environment marked by
infrastructural deficits, security concerns, and intense
local competition. Understanding how small-scale
businesses in this specific context can leverage
strategic entrepreneurial approaches to enhance their
competitiveness is crucial for regional economic
development and the overall growth trajectory of
Nigeria's SME sector.
This article aims to provide a comprehensive analysis of
the influence of strategic entrepreneurship on the
competitiveness of small-scale businesses in South-
South Nigeria. It will meticulously explore the
theoretical
underpinnings
of
strategic
entrepreneurship and competitiveness, synthesize
existing literature on their interrelationship, and
discuss the practical implications for small business
owners and policymakers within the Nigerian context.
The subsequent sections will follow the IMRaD format,
beginning with a detailed literature review and
theoretical framework, followed by a hypothetical
methodology for future empirical research, a
discussion of synthesized findings, and concluding with
actionable recommendations.
Literature Review and Theoretical Framework
To comprehensively understand the influence of
strategic entrepreneurship on the competitiveness of
small-scale businesses in South-South Nigeria, it is
essential to establish a robust theoretical foundation
and review existing literature on the core concepts.
2.1. Defining Strategic Entrepreneurship
Strategic entrepreneurship (SE) is a relatively new but
rapidly evolving concept that integrates two distinct
but complementary domains: entrepreneurship and
strategic management [16]. It represents a holistic
approach where firms simultaneously engage in
opportunity-seeking (the entrepreneurial dimension)
and advantage-seeking (the strategic management
dimension) behaviors [7, 13].
•
Entrepreneurial
Dimension
(Opportunity-
Seeking): This involves the discovery, evaluation, and
exploitation of new opportunities. Key characteristics
associated with this dimension include:
o
Innovation: The development of new products,
services, processes, or business models [3, 30]. This can
be radical or incremental, but it is central to creating
new value.
o
Proactiveness: Acting in anticipation of future
market needs or changes, rather than merely reacting
to them [29]. This involves foresight and taking the
initiative.
o
Risk-Taking: A willingness to commit resources
to ventures with uncertain outcomes, often involving
bold and aggressive actions [6, 11].
o
Opportunity Recognition: The ability to identify
potential new markets, customer needs, or
technological advancements that can be leveraged for
growth.
•
Strategic Dimension (Advantage-Seeking): This
focuses on developing and sustaining competitive
advantage through the effective management and
leveraging of resources and capabilities. Key
characteristics include:
o
Strategic Renewal: The ongoing process of
adapting and reconfiguring a firm's resource base and
capabilities to maintain relevance and competitiveness
in a changing environment [13].
o
Resource Leveraging: Efficiently and effectively
utilizing existing and newly acquired resources
(tangible and intangible) to create value [4]. This
includes
financial,
human,
technological,
and
organizational resources.
o
Competitive Positioning: Deliberately choosing
a unique position in the market that allows the firm to
differentiate itself or operate at a lower cost than
competitors.
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o
Organizational Learning: The capacity of the
firm to acquire, assimilate, transform, and exploit
knowledge to improve its strategic decision-making
and operational effectiveness [3].
Kuratko and Audretsch (2017) emphasize that SE is
about "how firms find new opportunities and exploit
them to create wealth" [16]. It is not merely about
being entrepreneurial or strategic in isolation, but
about integrating these two perspectives to achieve
superior performance. For small-scale businesses, SE is
particularly vital as it allows them to be agile and
innovative while simultaneously building sustainable
foundations.
2.2. Understanding Competitiveness for Small-Scale
Businesses
Competitiveness, in a business context, refers to the
ability of a firm to effectively compete in its market,
achieve its objectives, and sustain its position over
time. For small-scale businesses, competitiveness is
often manifested through:
•
Market Share: The proportion of total sales in a
market accounted for by a particular firm.
•
Profitability: The ability to generate profits
from operations, indicating financial health and
sustainability.
•
Growth: Expansion in terms of sales, assets, or
employee numbers [6, 8].
•
Customer Satisfaction and Loyalty: The extent
to which customers are pleased with the firm's
products or services, leading to repeat business and
positive word-of-mouth.
•
Innovation and Differentiation: The ability to
offer unique products, services, or processes that stand
out from competitors [30].
•
Efficiency and Cost-Effectiveness: Operating in
a way that minimizes costs while maximizing output,
allowing for competitive pricing.
•
Adaptability and Responsiveness: The capacity
to quickly adjust to changing market conditions,
customer demands, and competitive pressures.
The concept of competitive advantage is central to
competitiveness. Barney, Ketchen, and Wright (2011)
highlight that a firm achieves a sustainable competitive
advantage when it implements a value-creating
strategy not simultaneously being implemented by any
current or potential competitors and when these other
firms are unable to duplicate the benefits of this
strategy [4]. For small-scale businesses, this often
means leveraging their agility, proximity to customers,
and niche market focus to create unique value
propositions.
2.3. Theoretical Frameworks
Several theoretical perspectives underpin the
relationship between strategic entrepreneurship and
competitiveness:
2.3.1. Resource-Based View (RBV):
The RBV posits that a firm's sustainable competitive
advantage stems from its unique, valuable, rare,
inimitable, and non-substitutable (VRIN) resources and
capabilities [4]. In the context of strategic
entrepreneurship,
the
RBV
suggests
that
entrepreneurial activities (opportunity-seeking) allow
firms to acquire or develop new valuable resources
(e.g., intellectual property, specialized knowledge,
unique networks), while strategic actions (advantage-
seeking) focus on leveraging these resources effectively
to create and sustain competitive advantage [15]. For
small
businesses,
intangible
resources
like
entrepreneurial
knowledge,
strong
customer
relationships, and organizational culture can be
particularly difficult for competitors to imitate.
2.3.2. Entrepreneurial Orientation (EO):
EO is a firm-level construct that reflects an
organization's
strategic
posture
towards
entrepreneurship. It typically comprises three key
dimensions:
•
Innovativeness: A firm's tendency to engage in
new ideas, experimentation, and R&D activities leading
to new products, services, or processes.
•
Proactiveness: A firm's initiative in anticipating
and acting on future market needs, often by being first
movers.
•
Risk-Taking: A firm's willingness to commit
significant resources to projects with uncertain
outcomes [6, 11, 29].
While EO focuses on entrepreneurial behaviors,
strategic entrepreneurship integrates this orientation
with a deliberate strategic management process to
ensure that these behaviors translate into sustainable
competitive advantage and improved performance
[13]. Studies have shown a positive link between EO
and firm performance, particularly in SMEs [6, 10, 22,
29, 31].
2.4. Strategic Entrepreneurship and Competitiveness in
SMEs: A Review
The interplay between strategic entrepreneurship and
competitiveness in SMEs has been a growing area of
academic inquiry. Research consistently suggests that
firms that effectively integrate entrepreneurial and
strategic behaviors tend to outperform those that
focus on only one dimension.
•
Innovation as a Competitive Driver: Strategic
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entrepreneurship emphasizes continuous innovation.
For small businesses, innovation can be a powerful tool
to differentiate themselves from larger competitors,
create unique value propositions, and respond to
evolving customer needs [3, 30, 35]. This includes
product innovation, process innovation, and business
model innovation. Makinde and Agu (2018) found a
significant
relationship
between
strategic
entrepreneurship and the performance of SMEs in Aba
Metropolis, Nigeria, with innovation being a key
component [19].
•
Proactiveness and Market Responsiveness:
Proactive small businesses, guided by a strategic
entrepreneurial approach, are better positioned to
anticipate
market
shifts,
identify
emerging
opportunities, and act swiftly. This agility allows them
to gain a first-mover advantage or quickly adapt to
competitive pressures, enhancing their market
responsiveness and overall competitiveness [7, 29].
•
Risk-Taking and Opportunity Exploitation:
While risk-taking is inherent in entrepreneurship,
strategic entrepreneurship ensures that risks are
calculated and aligned with the firm's long-term
strategic goals. This enables small businesses to exploit
high-potential opportunities that competitors might
shy away from, leading to significant competitive gains
[8].
•
Strategic Renewal and Adaptability: In dynamic
environments, small businesses must constantly renew
their strategies and resource configurations. Strategic
entrepreneurship facilitates this continuous learning
and adaptation, ensuring that the firm remains relevant
and competitive [13]. This is particularly important in
volatile markets like Nigeria.
•
Resource Leveraging and Efficiency: SMEs
often
face
resource
constraints.
Strategic
entrepreneurship helps them to efficiently leverage
their limited resources, including human capital,
knowledge, and networks, to create maximum value.
This efficiency can translate into cost advantages or
superior quality, enhancing competitiveness [4, 15].
•
Human Capital and Entrepreneurial Skills: The
skills and orientation of the entrepreneur and their
employees
are
critical.
Entrepreneurial
skills
development [5, 25] and entrepreneurial training and
education [20] play a vital role in fostering a strategic
entrepreneurial mindset within small businesses.
Leadership also plays a crucial role in SMEs [17].
Several studies from the Nigerian context support the
importance
of
strategic
management
and
entrepreneurial orientation for SME performance and
competitiveness. Adeyemi, Isaac, and Olufemi (2017)
emphasize strategic management as a policy to
enhance sustainable business development in Nigerian
SMEs [1]. Adibe, Akam, and Onuorah (2023) found
entrepreneurial
orientation
to
influence
the
performance of selected SMEs in Southeast Nigeria [2].
Okoi et al. (2022) specifically examined strategic
entrepreneurship practices and performance of SMEs
in Nigeria, finding a positive relationship [23].
Nnabugwu
(2021)
also
linked
strategic
entrepreneurship to competitive advantage in SMEs in
Anambra State [21]. However, the specific nuances of
the South-South Nigerian context, with its unique
challenges and opportunities, warrant further focused
exploration.
2.5. Context of South-South Nigeria
The South-South geopolitical zone of Nigeria comprises
six states: Akwa Ibom, Bayelsa, Cross River, Delta, Edo,
and Rivers. This region is economically significant due
to its vast oil and gas reserves, which contribute
substantially to Nigeria's national revenue. However,
reliance on oil has also led to underdevelopment in
other sectors, environmental degradation, and socio-
economic challenges.
Small-scale businesses in this region operate within a
complex environment characterized by:
•
Resource Endowments: While rich in oil, the
region also has significant agricultural, aquatic, and
human resources that are often underdeveloped.
•
Infrastructural Deficiencies: Despite oil wealth,
many areas suffer from poor road networks,
inconsistent power supply, and limited access to
modern infrastructure, increasing operational costs for
SMEs.
•
Security Challenges: Issues such as pipeline
vandalism, kidnapping, and civil unrest can create an
unstable business environment, deterring investment
and hindering growth.
•
High Competition: The presence of both large
multinational corporations (in the oil sector) and a high
density of informal sector businesses creates intense
competition for small-scale enterprises.
•
Access to Finance: Similar to other parts of
Nigeria, SMEs in the South-South often struggle with
limited access to affordable credit, which is crucial for
investment in strategic initiatives [12].
•
Entrepreneurial Culture: The region has a
vibrant entrepreneurial spirit, but there is a need to
channel this towards more strategically oriented and
sustainable ventures.
Given
these
contextual
factors,
strategic
entrepreneurship becomes not just an advantage but a
necessity for small-scale businesses in South-South
Nigeria to achieve and sustain competitiveness. It
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enables them to identify niche opportunities, innovate
despite constraints, manage risks effectively, and build
unique capabilities that are difficult for competitors to
replicate.
METHODOLOGY
(HYPOTHETICAL
EMPIRICAL
RESEARCH DESIGN)
This section outlines a comprehensive hypothetical
empirical research design that could be employed in
future studies to rigorously test the propositions and
explore the influence of strategic entrepreneurship on
the competitiveness of small-scale businesses in South-
South Nigeria. This detailed methodology is presented
to illustrate the practical application of research
principles and contribute to the overall depth of this
article.
3.1. Research Philosophy and Approach
•
Research Philosophy: A positivist philosophy
would underpin this study, emphasizing objective
inquiry and the testing of hypotheses derived from
existing
theories
(e.g.,
Resource-Based
View,
Entrepreneurial Orientation). This approach assumes
that social reality can be studied objectively and that
relationships between variables can be identified and
measured.
•
Research Approach: A deductive approach
would be adopted, moving from general theoretical
propositions about strategic entrepreneurship and
competitiveness to specific hypotheses that can be
empirically tested using quantitative data.
•
Research Design: A cross-sectional survey
design would be the primary method for data
collection. This design allows for the collection of data
on multiple variables from a large sample at a single
point in time, enabling the examination of relationships
and patterns. While cross-sectional designs cannot
establish causality, they are effective for identifying
correlations and describing phenomena at a given
moment.
3.2. Population and Sampling
•
Target Population: The study would focus on
owners/managers of registered small-scale businesses
operating within the South-South geopolitical zone of
Nigeria. The definition of "small-scale business" would
align with the official Nigerian SME classification (e.g.,
based on employee numbers and/or asset base).
•
Sampling Frame: A comprehensive list of
registered small-scale businesses in the South-South
states (Akwa Ibom, Bayelsa, Cross River, Delta, Edo,
Rivers) would serve as the sampling frame. This could
be obtained from relevant government agencies (e.g.,
Small and Medium Enterprises Development Agency of
Nigeria - SMEDAN, Corporate Affairs Commission -
CAC), chambers of commerce, or professional
associations.
•
Sampling Technique: A stratified random
sampling technique would be ideal to ensure
representation across different states within the South-
South region and potentially across different business
sectors
(e.g.,
manufacturing,
services,
trade,
agriculture) to capture the diversity of small
businesses. Within each stratum, simple random
sampling could be used to select individual businesses.
•
Sample Size: To ensure sufficient statistical
power for multivariate analyses (e.g., regression,
Structural Equation Modeling), a minimum sample size
of 300-500 small-scale business owners/managers
would be targeted. This range is consistent with
recommendations for robust statistical tests in similar
studies [10]. A response rate of 60-70% would be aimed
for, similar to successful survey studies.
3.3. Instrumentation and Measurement
A self-administered questionnaire would be the
primary data collection instrument, designed to
measure strategic entrepreneurship practices and
various dimensions of business competitiveness. The
questionnaire would primarily utilize a five-point Likert
rating scale (e.g., 1 = Strongly Disagree, 5 = Strongly
Agree) for most attitudinal and perceptual constructs.
3.3.1. Questionnaire Sections:
•
Demographic and Business Information: Age,
gender, education level of the owner/manager, years in
business, business sector, number of employees, legal
structure of the business.
•
Strategic
Entrepreneurship
(Independent
Variable): This would be a multi-item construct
measuring
the
firm's
engagement
in
both
entrepreneurial and strategic behaviors. Items would
be adapted from established scales in the literature
(e.g., [13, 16, 23]). Dimensions would include:
o
Innovativeness: Questions on introducing new
products/services, processes, or business models; R&D
investment.
o
Proactiveness: Questions on anticipating
market changes, being first movers, taking initiative.
o
Risk-Taking: Questions on willingness to invest
in uncertain ventures, bold competitive actions.
o
Strategic Renewal: Questions on adapting
business models, reconfiguring resources, continuous
learning.
o
Resource Leveraging: Questions on efficient
utilization of financial, human, technological, and
intangible resources.
•
Business
Competitiveness
(Dependent
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Variable): This would also be a multi-item construct,
capturing various aspects of competitive posture. Items
would be adapted from relevant literature (e.g., [26,
27]). Dimensions could include:
o
Market Performance: Questions on market
share growth, sales growth, customer acquisition.
o
Financial
Performance:
Questions
on
profitability, revenue growth, return on investment
(perceived by owner/manager).
o
Operational Efficiency: Questions on cost
reduction, productivity improvements.
o
Product/Service Differentiation: Questions on
uniqueness of offerings, quality, brand reputation.
o
Customer Loyalty: Questions on repeat
business, customer retention.
3.3.2. Pre-testing and Pilot Study:
Before full-scale data collection, the questionnaire
would undergo rigorous pre-testing with a small group
of target respondents (e.g., 10-15 business owners) to
identify any ambiguities, confusing language, or
irrelevant items. A pilot study (e.g., with 30-50
respondents) would then be conducted to further
refine the instrument, assess initial reliability, and
estimate response rates. This step is crucial for
ensuring the clarity and cultural appropriateness of the
questions within the South-South Nigerian context.
3.4. Validity and Reliability
Rigorous measures would be implemented to ensure
the validity and reliability of the research instrument:
•
Content Validity: Ensured through expert
review. A panel of academics (professors in
entrepreneurship, strategic management, and business
administration)
and
industry
practitioners
(experienced SME consultants, representatives from
chambers of commerce) familiar with the Nigerian
business context would review the questionnaire items
to ensure they comprehensively cover the constructs
and are relevant to small-scale businesses in South-
South Nigeria.
•
Construct
Validity
(Confirmatory
Factor
Analysis - CFA): CFA would be performed using
statistical software to confirm the underlying factor
structure of the multi-item constructs.
o
Convergent Validity: Assessed by examining
factor loadings (ideally > 0.7), Average Variance
Extracted (AVE > 0.5), and Composite Reliability (CR >
0.7). High values would indicate that items truly
measure their intended constructs.
o
Discriminant Validity: Assessed using the
Fornell-Larcker criterion (square root of AVE for each
construct should be greater than its correlations with
other constructs) and Heterotrait-Monotrait (HTMT)
ratio (ideally < 0.9). This ensures that constructs are
distinct from each other.
•
Reliability (Internal Consistency): Assessed
using Cronbach's Alpha for each multi-item scale.
Values above 0.7 would indicate acceptable internal
consistency, meaning the items within a scale are
consistently measuring the same underlying construct.
•
Common Method Bias (CMB): Since self-
administered questionnaires are susceptible to CMB,
several procedural and statistical remedies would be
employed:
o
Procedural: Ensuring anonymity, separating
measurement of predictor and criterion variables,
varying question order, and using different scale
formats for different constructs.
o
Statistical: Performing Harman's one-factor
test (if a single factor accounts for less than 50% of the
variance, CMB is not a major concern) [32]. More
advanced techniques like marker variable analysis or
common latent factor (CLF) could also be considered.
•
Multicollinearity:
The
extent
of
multicollinearity among independent variables would
be assessed by computing Variance Inflation Factor
(VIF) values. VIF values below 3.3 (or 5, depending on
strictness) would indicate the absence of problematic
multicollinearity.
3.5. Data Analysis
Data collected from the surveys would be analyzed
using appropriate statistical software (e.g., SPSS,
SmartPLS, R, AMOS).
•
Descriptive Statistics: To summarize the
characteristics of the respondents and their businesses,
and to provide an overview of the levels of strategic
entrepreneurship
practices
and
business
competitiveness. This would include frequencies,
percentages, means, standard deviations, and ranges.
•
Inferential Statistics: To test hypotheses and
examine relationships between variables.
o
Correlation Analysis: To identify the strength
and direction of linear relationships between the
dimensions of strategic entrepreneurship and various
aspects of business competitiveness.
o
Regression Analysis: To determine the
predictive power of strategic entrepreneurship (and its
dimensions) on overall business competitiveness and
its individual components. Multiple regression would
be used to assess the unique contribution of each
strategic entrepreneurship dimension while controlling
for others.
o
Structural Equation Modeling (SEM): This
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would be the most suitable analytical technique for
testing complex theoretical models with multiple
hypothesized relationships and latent variables. Partial
Least Squares SEM (PLS-SEM) is often preferred for
prediction and theory development, especially with
complex models and non-normal data, and would be
appropriate here [17]. SEM would allow for
simultaneous testing of direct and indirect effects, and
for assessing the overall fit of the model to the data.
o
Hypothesis Testing: Each hypothesis derived
from the theoretical framework (e.g., "Strategic
entrepreneurship
positively
influences
the
competitiveness of small-scale businesses") would be
statistically tested using the appropriate inferential
techniques.
This robust hypothetical methodology provides a clear
roadmap for future empirical research, ensuring that
any subsequent studies are conducted with scientific
rigor to generate reliable and valid insights into the
complex dynamics of strategic entrepreneurship and
competitiveness in small-scale businesses in South-
South Nigeria.
RESULTS AND DISCUSSION (THEORETICAL SYNTHESIS
OF EXPECTED FINDINGS)
As this article is a theoretical synthesis, it does not
present new empirical results from primary data
collection. Instead, this section will articulate the
synthesized findings and theoretical implications
derived from the comprehensive literature review,
particularly in light of the conceptual framework and
the specific context of small-scale businesses in South-
South Nigeria. The "Discussion" will then delve deeper
into the nuances and broader implications of these
theoretical findings.
4.1. Synthesized Findings on the Influence of Strategic
Entrepreneurship
Based on the theoretical frameworks and existing
literature,
it
is
expected
that
strategic
entrepreneurship will exert a significant and positive
influence on the competitiveness of small-scale
businesses in South-South Nigeria across multiple
dimensions. The synthesis points to the following key
expected findings:
4.1.1. Strategic Entrepreneurship and Enhanced
Market Performance:
The integration of entrepreneurial opportunity-seeking
with strategic advantage-seeking is anticipated to
directly translate into improved market performance
for small-scale businesses.
•
Increased Market Share and Sales Growth:
Firms
exhibiting
high
innovativeness
and
proactiveness,
core
components
of
strategic
entrepreneurship, are more likely to introduce novel
products or services, or enter new market segments
ahead of competitors [7, 29]. This first-mover
advantage, coupled with a strategic focus on
competitive positioning, is expected to lead to higher
sales volumes and an expansion of market share. This
aligns with findings that entrepreneurial orientation
positively impacts firm growth [6, 8].
•
Improved Customer Acquisition and Loyalty:
Strategic entrepreneurial firms are adept at identifying
unmet customer needs and developing differentiated
offerings. This customer-centric innovation, combined
with a proactive approach to service delivery, is
expected to enhance customer satisfaction and foster
greater loyalty, which are crucial for sustained market
performance.
4.1.2. Strategic Entrepreneurship and Superior
Financial Performance:
While small businesses in Nigeria often face financial
constraints [12], strategic entrepreneurship is expected
to contribute positively to their financial health.
•
Enhanced Profitability: By focusing on both
innovation and efficient resource leveraging, strategic
entrepreneurial firms can create higher value for
customers, command better pricing, or achieve cost
efficiencies. This dual approach is expected to lead to
improved profit margins and overall profitability [13,
29].
•
Optimized Resource Utilization: The strategic
dimension of SE emphasizes the efficient and effective
deployment of existing and newly acquired resources
[4, 15]. For resource-constrained small businesses, this
means maximizing the return on limited capital, human
talent, and technological investments, thereby
improving financial outcomes.
4.1.3. Strategic Entrepreneurship and Operational
Efficiency/Innovation:
Strategic entrepreneurship fosters a culture of
continuous improvement and adaptation, which
directly impacts operational aspects.
•
Process Innovation and Cost Reduction: An
innovative mindset, coupled with strategic analysis,
encourages small businesses to seek out more efficient
operational processes, reduce waste, and optimize
supply chains. This can lead to significant cost
reductions, enhancing their competitive pricing ability.
•
Improved
Productivity:
By
strategically
investing in technology and human capital (e.g.,
through entrepreneurial skills development [5, 25]),
firms can boost productivity, allowing them to do more
with less, which is critical for smaller enterprises.
4.1.4. Strategic Entrepreneurship and Sustainable
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Differentiation:
The core of competitive advantage lies in
differentiation, and strategic entrepreneurship is
uniquely positioned to foster this.
•
Unique Value Propositions: The opportunity-
seeking aspect drives the creation of novel products,
services, or customer experiences that stand out from
competitors. The advantage-seeking aspect ensures
that these differentiators are difficult for rivals to
imitate, leading to a sustainable competitive edge [21,
26].
•
Adaptability and Resilience: In the volatile
business environment of South-South Nigeria, firms
that can strategically renew themselves and adapt
proactively to changing market conditions, regulatory
shifts, or security challenges are more likely to survive
and thrive. This adaptability, a hallmark of strategic
entrepreneurship, contributes directly to long-term
competitiveness.
4.1.5. Strategic Entrepreneurship and Human Capital
Development:
The emphasis on entrepreneurial skills and knowledge
management within strategic entrepreneurship
indirectly contributes to competitiveness.
•
Skilled Workforce: Firms that embrace
strategic entrepreneurship are likely to invest in
training and developing the entrepreneurial skills of
their employees [5, 20]. A more skilled and
entrepreneurial
workforce
can
drive
internal
innovation and improve overall organizational
performance.
•
Knowledge
Leveraging:
Strategic
entrepreneurship encourages firms to effectively
acquire, assimilate, and exploit knowledge, leading to
better decision-making and the development of unique
capabilities [3].
4.2. Discussion of Findings and Implications
The synthesized findings underscore that strategic
entrepreneurship is not merely a theoretical construct
but a practical imperative for small-scale businesses
seeking to thrive in the competitive landscape of South-
South Nigeria. The implications of these expected
findings are multi-faceted, affecting business owners,
policymakers, and the broader economic ecosystem.
4.2.1. Beyond Mere Survival: The Shift to Proactive
Growth:
For many small businesses in Nigeria, the primary focus
is often on day-to-day survival due to challenging
operating conditions. However, the theoretical
synthesis suggests that adopting a strategic
entrepreneurial approach can shift this mindset from
reactive survival to proactive growth and competitive
positioning. By consciously pursuing both new
opportunities and sustainable advantages, small
businesses can move beyond simply reacting to market
forces and instead shape their own destinies. This
aligns with the idea that strategic management is a
policy to enhance sustainable business development
[1].
4.2.2. Innovation as a Non-Negotiable Imperative:
The literature consistently highlights innovation as a
core component of strategic entrepreneurship and a
key driver of competitiveness [3, 30, 35]. For small-
scale businesses in South-South Nigeria, this means
that simply offering generic products or services is no
longer sufficient. They must actively seek ways to
innovate
–
whether in product design, service delivery,
operational processes, or business models
–
to
differentiate themselves. This is particularly relevant in
a region with diverse local needs and untapped market
niches. The findings by Makinde and Agu (2018) on
SMEs in Aba Metropolis, a city in the South-South
region, further support this [19].
4.2.3. The Strategic Management of Scarcity:
Small businesses are inherently resource-constrained.
Strategic entrepreneurship provides a framework for
managing this scarcity effectively. By focusing on
resource leveraging, these firms can maximize the
value derived from their limited financial, human, and
technological assets. This involves not just acquiring
resources but also efficiently deploying and
reconfiguring them to meet strategic objectives [4, 15].
This is crucial in an environment where access to
finance is a significant barrier [12].
4.2.4. Adapting to Volatility and Uncertainty:
The South-South Nigerian context is marked by various
forms of volatility, including economic fluctuations,
security concerns, and infrastructural challenges.
Strategic entrepreneurship, with its emphasis on
strategic renewal and adaptability, equips small
businesses to navigate such uncertainties. Firms that
can quickly sense changes, make strategic adjustments,
and reallocate resources are more likely to build
resilience and maintain their competitive edge [13].
4.2.5. The Role of the Entrepreneur and Human Capital:
The success of strategic entrepreneurship heavily relies
on the capabilities and mindset of the entrepreneur
and their team. The ability to identify opportunities,
take calculated risks, and implement strategic decisions
rests on strong entrepreneurial skills and leadership [5,
17, 25]. This underscores the importance of
entrepreneurship training and education programs [20]
that go beyond basic business skills to include strategic
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thinking and innovation management.
4.2.6. Implications for Policymakers and Support
Organizations:
The findings suggest that policymakers and support
organizations (like SMEDAN) in Nigeria, particularly in
the South-South region, have a critical role to play in
fostering strategic entrepreneurship among small-scale
businesses.
•
Access to Finance: Initiatives aimed at
improving access to affordable credit for SMEs must
specifically consider funding for innovation and
strategic investments, not just working capital.
•
Infrastructure
Development:
Addressing
infrastructural deficits (power, roads, internet
connectivity) will lower operational costs and enable
SMEs to fully leverage digital tools for strategic
entrepreneurship.
•
Capacity Building: Training programs should be
designed to cultivate strategic thinking, innovation
management, and risk assessment skills among small
business
owners,
moving
beyond
generic
entrepreneurial training.
•
Policy Support for Innovation: Policies that
incentivize R&D, intellectual property protection, and
collaboration among SMEs can foster a more
innovative ecosystem.
•
Security and Stability: Efforts to improve
security and create a stable business environment are
foundational for any long-term strategic planning by
small businesses.
In conclusion, the theoretical synthesis strongly
supports the notion that strategic entrepreneurship is
a vital pathway for small-scale businesses in South-
South Nigeria to achieve and sustain competitiveness.
By consciously integrating entrepreneurial agility with
strategic foresight, these firms can navigate challenges,
exploit opportunities, and build unique capabilities that
ensure their long-term success in a dynamic market.
CONCLUSION AND RECOMMENDATIONS
Small-scale businesses are indispensable pillars of the
Nigerian economy, particularly in the South-South
region, contributing significantly to employment,
innovation, and local economic development.
However, their ability to thrive amidst intense
competition
and
a
challenging
operational
environment hinges critically on their capacity to
achieve and sustain a competitive advantage. This
article has thoroughly explored the profound influence
of strategic entrepreneurship on the competitiveness
of these vital enterprises. By synthesizing established
theoretical frameworks, particularly the Resource-
Based View and Entrepreneurial Orientation, and
reviewing relevant literature, it has been established
that strategic entrepreneurship, defined as the
simultaneous pursuit of opportunity and advantage,
offers a powerful and necessary framework for small-
scale businesses to navigate market dynamics and
secure their long-term viability.
The theoretical synthesis indicates that engaging in
strategic entrepreneurial practices
–
encompassing
innovativeness, proactiveness, calculated risk-taking,
strategic renewal, and efficient resource leveraging
–
is
expected to directly enhance the market performance,
financial health, operational efficiency, and overall
differentiation of small-scale businesses. In the unique
context of South-South Nigeria, marked by both
resource endowments and significant infrastructural
and security challenges, adopting such an integrated
approach becomes not just a strategic option but a
critical imperative for survival and growth. The ability
to innovate and adapt proactively, while strategically
managing limited resources, will be the hallmark of
competitive small-scale enterprises in this region.
5.1. Recommendations for Small-Scale Business
Owners/Managers
1.
Embrace a Strategic Entrepreneurial Mindset:
o
Cultivate Dual Focus: Actively seek new
opportunities (e.g., emerging market niches, new
technologies) while simultaneously developing and
leveraging unique resources and capabilities to create
sustainable advantages.
o
Foster Innovation: Dedicate resources (even if
limited) to continuous innovation in products, services,
processes,
or
business
models.
Encourage
experimentation and learning from failures.
o
Be Proactive, Not Reactive: Anticipate market
changes and competitive moves. Invest in market
intelligence and foresight to position your business
ahead of the curve.
o
Calculate Risks: While risk-taking is essential,
ensure that risks are thoroughly assessed and aligned
with the firm's strategic objectives. Avoid impulsive
decisions.
2.
Invest in Human Capital and Knowledge
Management:
o
Develop Entrepreneurial Skills: Continuously
invest in training for yourself and your employees in
areas such as strategic thinking, innovation
management, market analysis, and risk assessment [5,
20, 25].
o
Foster Organizational Learning: Create a
culture where knowledge is shared, learned from, and
applied to improve strategic decision-making and
operational efficiency [3].
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o
Strong Leadership: Recognize the critical role of
effective leadership in driving strategic entrepreneurial
initiatives within the SME [17].
3.
Optimize Resource Leveraging:
o
Lean Operations: Focus on maximizing output
from minimal inputs. Identify and eliminate waste in all
aspects of operations.
o
Strategic Partnerships: Explore collaborations
with other SMEs, larger firms, or research institutions
to access complementary resources, knowledge, and
markets.
o
Intangible Assets: Recognize and cultivate
intangible resources such as brand reputation,
customer relationships, and unique organizational
culture, as these are often difficult for competitors to
imitate [4].
4.
Prioritize Strategic Renewal:
o
Regular Strategic Review: Periodically review
your business model, competitive landscape, and
resource base to identify areas for renewal and
adaptation.
o
Adaptability: Develop organizational agility to
quickly respond to changes in customer preferences,
technology, or the regulatory environment.
5.2. Recommendations for Policymakers and Support
Organizations
1.
Enhance Access to Strategic Finance:
o
Specialized Funding: Develop and promote
specialized financial products (e.g., innovation grants,
venture capital for SMEs, long-term loans with flexible
terms) that specifically support strategic investments in
R&D, technology adoption, and market expansion by
small businesses.
o
Capacity Building for Lenders: Train financial
institutions to better understand and assess the unique
financial needs and risk profiles of strategically
entrepreneurial SMEs.
2.
Improve
Infrastructure
and
Business
Environment:
o
Consistent
Power
Supply:
Prioritize
investments in reliable and affordable power supply, as
this is a fundamental enabler for operational efficiency
and technological adoption for SMEs.
o
Road Networks and Logistics: Improve
transportation infrastructure to reduce logistics costs
and facilitate market access for small businesses.
o
Security Measures: Implement robust security
measures to create a stable and predictable operating
environment, which is crucial for long-term strategic
planning and investment.
3.
Strengthen
Entrepreneurship
Ecosystem
Support:
o
Tailored Training Programs: Design and deliver
entrepreneurship training programs that specifically
focus on strategic thinking, innovation management,
competitive analysis, and resource leveraging, moving
beyond basic business management [20].
o
Mentorship
and
Networking:
Facilitate
mentorship programs and networking platforms that
connect aspiring and existing strategic entrepreneurs
with experienced mentors and industry experts.
o
Knowledge Transfer: Promote collaborations
between universities, research institutions, and SMEs
to facilitate the transfer of relevant knowledge and
technology.
4.
Foster a Supportive Regulatory Framework:
o
Ease of Doing Business: Continuously review
and streamline regulations to reduce the burden on
small businesses, making it easier for them to innovate
and operate competitively.
o
Intellectual Property Protection: Strengthen
intellectual property rights enforcement to protect the
innovations of small businesses, incentivizing further
R&D.
o
Incentives for Collaboration: Introduce policies
that incentivize technological collaboration and
partnerships among SMEs [30].
5.3. Avenues for Future Research
1.
Empirical Validation: Conduct large-scale
empirical studies using the hypothetical methodology
outlined, collecting primary data from small-scale
businesses in South-South Nigeria to statistically
validate the hypothesized relationships between
strategic entrepreneurship and various dimensions of
competitiveness.
2.
Qualitative
Insights:
Employ
qualitative
research methods (e.g., in-depth interviews, case
studies) to explore the nuances of how strategic
entrepreneurship is practiced within different sectors
of small-scale businesses in the region, capturing the
lived experiences and contextual factors.
3.
Mediating/Moderating Factors: Investigate the
mediating roles of factors like access to finance,
technological capability, or entrepreneurial culture,
and the moderating roles of industry dynamism or
government
support,
on
the
strategic
entrepreneurship-competitiveness relationship [12,
30, 35].
4.
Longitudinal Studies: Conduct longitudinal
research to track the development of strategic
entrepreneurial capabilities and their long-term impact
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on business competitiveness over time in the South-
South Nigerian context.
5.
Comparative Studies: Compare the strategic
entrepreneurial practices and competitiveness levels of
small-scale businesses in South-South Nigeria with
those in other Nigerian regions or other developing
economies to identify unique challenges and best
practices.
By collectively embracing these recommendations and
pursuing further rigorous research, stakeholders can
significantly bolster the strategic entrepreneurial
capacity of small-scale businesses in South-South
Nigeria, thereby enhancing their competitiveness and
contributing substantially to the region's sustainable
economic development.
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doi:10.11648/j.ebm.20170302.12.
