Effect of Entrepreneurial Autonomy and Proactiveness on Sustainable Small and Medium Enterprise (SME) Performance in Kano State, Nigeria

Abstract

Small and medium enterprises (SMEs) are the primary engines of economic development, making their sustainability a critical concern for growth economies like Nigeria. This study investigated the direct impact of two key dimensions of Entrepreneurial Orientation (EO)— Proactiveness and Autonomy—on Sustainable SME Performance in Kano State, Nigeria. Utilizing a cross-sectional survey design, primary data was collected from 629 owners/managers of SMEs, specifically those operating in the water production sector. The data was analyzed using the advanced statistical technique of SmartPLS-SEM version 3. The findings revealed that Entrepreneurial Autonomy exhibited a positive and significant impact on sustainable SME performance, confirming its role as a key driver of long-term viability in emerging markets (Ajani et al., 2025). Conversely, Entrepreneurial Proactiveness was found to have an insignificant direct impact, contributing to the existing body of mixed and contextspecific findings in African emerging markets. The study concludes that Autonomy is a vital factor for sustained success and recommends that SMEs in similar contexts prioritize autonomous decision-making structures to enhance their performance.