ENTREPRENEURIAL MANAGEMENT PRACTICES AND THE PERFORMANCE OF START-UP FIRMS IN ABEOKUTA, OGUN STATE, NIGERIA

Dauda Oladejo

Authors

Dauda Oladejo Federal University of Agriculture, Abeokuta, Nigeria

Keywords:

Entrepreneurial management practice, Startup firm's performance, Talent management, Team morale and engagement, Creativity and innovation management, Industry sector, Years of business operation

Abstract

Start-up firms in developing economies face significant challenges in achieving sustainable performance due to resource constraints, market uncertainties, and management capability gaps. In Nigeria's entrepreneurial ecosystem, the failure rate of startups remains high, with inadequate management practices identified as a critical contributing factor. The study investigated the nexus between entrepreneurial management practices (talent management, creativity and innovation management, and risk management) and startup performance; and examined the influence of the entrepreneurial management practices on the performance of start-up firms in the South-west Geo-Political Zone of Nigeria, specifically on entrepreneurial enterprises in Abeokuta, Ogun State. The population of the study was 250, derived from different startup ventures in the study area. The sample size for the study was 153 respondents, determined using Yaro Yamane's (1967) sampling technique. A structured questionnaire was designed for data collection based on validated scales from previous entrepreneurial management studies. The collected data were analyzed using descriptive and inferential statistics, with industry sector and years of business operation incorporated as control variables to isolate the unique effects of management practices. The descriptive statistics employed included mean, standard deviation, and percentages. The inferential statistics used were correlation and hierarchical multiple regression, facilitated by the Statistical Package for Social Sciences (SPSS version 27). The results indicate that entrepreneurial management practices, including talent management (B = 0.536, β = 0.252, t = 4.971, p < 0.001), creativity and innovation management (B = 0.628, β = 0.321, t = 6.093, p < 0.001), and risk management (B = 1.300, β = 0.592, t = 11.242, p < 0.001), as an overarching concept, substantially influence startup performance in Nigeria's entrepreneurial ecosystem. After controlling for industry sector and years of business operation, the full hierarchical model explained 64.3% of variance in startup performance (Adjusted R² = .614), confirming the robustness of these effects. Risk management emerged as the strongest single predictor, explaining 46.6% of variance in startup performance. Years of business operation was a significant control (β = .142, p = .024), while ICT/Technology sector startups demonstrated superior performance relative to other sectors. The study offers insights for entrepreneurs, policymakers, and stakeholders regarding the significance of management practices in fostering startup success within Nigeria's entrepreneurial ecosystem.

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