Entrepreneurial Innovation and Survival of Small and Medium Scale Enterprises in Anambra State, Nigeria

Abstract

This study examined the relationship between entrepreneurial innovation and survival of small and medium scale enterprises (SMEs) in Anambra State, Nigeria. The study was motivated by the persistent challenges confronting SMEs in Nigeria, including high failure rates, intense competition, technological disruptions, and an unstable economic environment, which threaten their efficiency, productivity, and long-term sustainability. Specifically, the study investigated the relationship between product innovation and SME survival; assessed the relationship between marketing innovation and SME survival; and evaluated the relationship between technological innovation and SME survival in Anambra State, Nigeria. Three research questions were raised and three null hypotheses were formulated in line with the specific objectives of the study. The study was anchored on Schumpeter’s Theory of Innovation. A survey research design was adopted. The population comprised owners and managers of selected SMEs operating in Anambra State, while a sample size of 379 respondents was determined and used for the study. Data were collected using a structured questionnaire, and the instrument was subjected to face and content validity. Reliability was established using Cronbach’s Alpha, with coefficients exceeding the acceptable threshold of 0.70 for all constructs. Out of the 379 copies of questionnaires administered, 359 copies were validly completed and used for analysis. Data were analyzed using Pearson Product Moment Correlation Coefficient at a 0.05 level of significance. The findings revealed a moderate positive and significant relationship between product innovation and SME survival (r = 0.487, p < 0.05); a moderate positive and significant relationship between marketing innovation and SME survival (r = 0.458, p < 0.05); and a strong positive and significant relationship between technological innovation and SME survival (r = 0.571, p < 0.05). The study concluded that innovation is a critical determinant of SME efficiency, productivity, competitiveness, and long term survival. It recommended that SME operators should continuously invest in product improvement, process optimization, innovative marketing strategies, and modern technologies to enhance sustainability.