How Government Intervention Can Enhance Entrepreneurial Competencies and SME Performance in Northwest Nigeria

Nuhu Tanko Danibrahim, Umar Haiyat Abdul Kohar, Bala Salisu and Logaiswari Indiran
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Nuhu Tanko Danibrahim: Federal College of Education (T) Gusau, PMB 1088, Zamfara State, Nigeria Faculty of Management, University Technology Malaysia, Johor Bahru, Johor, Malaysia
Umar Haiyat Abdul Kohar: Faculty of Management, University Technology Malaysia, Johor Bahru, Johor, Malaysia
Bala Salisu: School of Management Studies, The Federal Polytechnic Damaturu, Yobe State, Nigeria
Logaiswari Indiran: Faculty of Management, University Technology Malaysia, Johor Bahru, Johor, Malaysia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 1, 3125-3140

Abstract: Purpose: This study examines the influence of government intervention on entrepreneurial competencies and the subsequent impact on SME performance in Northwest Nigeria. It also investigates the mediating role of entrepreneurial competencies in the relationship between government intervention and SME performance. Methodology: A quantitative research design was employed using a survey questionnaire administered to 903 SME owners/managers in Northwest Nigeria. Data were analysed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS software. Findings: The results reveal that government intervention has a positive and significant impact on both entrepreneurial competencies and SME performance. Also, entrepreneurial competencies were found to mediate the relationship between government intervention and SME performance. The model demonstrates strong predictive power and relevance, indicating its ability to explain and predict SME performance. Practical implications: The study highlights the importance of government support in fostering SME development. Policymakers should prioritize interventions that not only provide direct support but also focus on developing entrepreneurial competencies among SME owners/managers. Originality: This study contributes to the literature by providing empirical evidence of the mediating role of entrepreneurial competencies in the government intervention–SME performance relationship in the specific context of Northwest Nigeria. The findings offer valuable insights for policymakers and practitioners seeking to promote SME growth and development in developing economies.

Date: 2025
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