Nigerian Journal of Banking and Financial Issues (NJBFI)

HARNESSING ENTREPRENEURIAL NETWORKS FOR SMALL AND MEDIUM ENTERPRISES (SMEs) SURVIVAL IN ILORIN, KWARA STATE, NIGERIA

Abstract

SMEs encounter many obstacles yet are essential to economic success. These challenges include financial constraints, competitive pressures among others. Thus, this research examines how personal and operational networks influence innovation and financial stability. A descriptive research design was adopted, with data collected from 310 SMEs owners in Ilorin, Kwara State, Nigeria using structured questionnaires. Data collected were analyzed using regression analysis. The findings revealed that personal networking significantly impact innovation, explaining 51.1% of its variation (R² = 0.511, F = 78.234, p < 0.05). Operational networking was found to influence financial stability, accounting for 52.5% of the variation (R² = 0.525, F = 85.762, p < 0.05). Regression coefficients confirmed that an increase in personal networking enhances innovation, while operational networking strengthens financial resilience. The study concludes that networking is a crucial survival strategy for SMEs, promoting knowledge exchange, resource optimization, and economic resilience. It recommends that SMEs owners should actively participate in industry collaborations, innovation hubs, and supplier partnerships to enhance business performance. By leveraging strategic networks, SMEs can overcome resource limitations, retain financial stability, and achieve long-term growth in an increasingly competitive business environment.