Entrepreneurial Self-Efficacy and Competitive Advantage of SMEs in Bayelsa State, Nigeria

Abstract

Purpose: This study examined the influence of entrepreneurial self-efficacy on competitive advantage of SMEs in Bayelsa State, Nigeria. Methodology: The study adopted a cross sectional survey research design. The population for this study was 300 owners/managers of small and medium scale enterprises in Bayelsa State that are registered with the Small and Medium Development Agency of Nigeria (SMEDAN). Primary data was collated using structured questionnaire. A sample size of 171 was obtained using the Taro Yamane sample size determination formula. The reliability of the instrument was achieved by the use of the Cronbach Alpha coefficient with all the items scoring above 0.70. The inferential statistics absorbed three parametric inferential tests-Pearson’s Product Moment Coefficient (PPMC), One Way Analysis of Variance (ANOVA) and Simple Regression Analysis. Pearson’s Product Moment Coefficient (PPMC) was used test the relationship between the variables, ANOVA was employed to test the differences in means of responses on the variables, while by means of simple regression, the study tested the effect of entrepreneurial self-efficacy on competitive advantage. The tests were carried out at a 0.05 significance level.  Findings: Findings from the study revealed that entrepreneurial self-efficacy significantly influences competitive advantage of SMEs in Bayelsa State, Nigeria. In conclusion, the findings of this study demonstrate that entrepreneurial self-efficacy plays a significant role in influencing the competitive advantage of small and medium-sized enterprises (SMEs) in Bayelsa State, Nigeria. The study shed light on the importance of individuals' beliefs in their own abilities to effectively engage in entrepreneurial activities and how these beliefs impact the competitive positioning of their businesses. Recommendation: Therefore, the study recommends that there is need to encourage and support aspiring and existing SME owners to develop and enhance their entrepreneurial self-confidence. This can be achieved through entrepreneurship education and training programs, mentorship initiatives, and networking opportunities that focus on building self-belief, risk-taking abilities, and resilience.