Key Success Factors of Entrepreneurial Development Programmesand Performance of Micro Enterprises

Abstract

Entrepreneurship development programmes (EDPs) play important roles in wealth creation and employment generation. Despite these relevance, previous studies on entrepreneurship development programmes were largely qualitative as well as on small and medium enterprises, thus disregarding studies on micro enterprises. This is in spite of the fact that micro enterprise comprises the largest proportion of business firms in Nigeria and Bauchi state in general. The aim of this paper is to examine the factors that help entrepreneurship development programmes contribute to the performance of micro enterprises. The study was quantitative and a sample of 26 micro firms in carpentry/furniture and wielding/fabrication were selected from Members of National Association of Small Scale Industrialists (NASSI, Bauchi branch). Multiple regression was used to analyze data collected from questionnaire administration. The study found a significant relationship between infrastructure and the performance of micro enterprises; EDP funding and the performance of micro enterprises; and entrepreneurs education level and the performance of micro enterprises. However, the study did not find any significant relationship between multiple taxation and the performance of micro enterprises. More surprisingly, there was no significant relationship between EDP capacity building and the performance of micro enterprises. The study recommends for single digit bank loan to micro enterprises as well as loan guarantee scheme by entrepreneurship development agencies. Government should design tax incentive programmes for micro enterprises. There is also need for capacity building to be targeted and tailored base on specific requirement of group of micro firms.