Effect Of Innovativeness And Proactiveness On The Performance Of Micro-Enterprises In Nasarawa State

Abstract

Innovativeness and proactiveness are widely acknowledged as key drivers of business success, yet their influence on microenterprise performance in emerging markets such as Nasarawa State remains underexplored. This study examines the effect of these entrepreneurial orientations on the performance of microenterprises in Nasarawa State, Nigeria. Anchored on the Dynamic Capabilities Theory, the study adopted a survey research design. Primary data was collected from a representative sample of 403 micro-enterprise owners and managers through structured copies of questionnaire out of the target population of 7,905 registered micro-enterprises in Nasarawa State. In which a combination of purposive and convenience sampling techniques was employed. The data collected was analysed using PLS-SEM. The results indicate that innovativeness significantly enhances micro-enterprise performance by driving product and process improvements, while proactiveness contributes positively by strengthening market responsiveness and competitive positioning. Based on these findings, the study recommends that micro-enterprise owners, policymakers and development agencies in Nasarawa State should prioritize the development of innovative capabilities and proactive strategies to promote improved performance and long-term sustainability of firms.