Entrepreneurial Orientation: A Remedy for Receding Productivity of Small and Medium Scale Enterprise: A Nigeria Perspective

Nigeria is experiencing immense structural changes which are affecting the economy. Entrepreneurial orientation (EO) is a vital force in the economy of any nation because of the strategic role it plays in the achievement of productivity. The aim of this paper is to provide more insight into EO as a remedy for productivity for small and medium scale enterprises in Nigeria by providing in-depth knowledge of the nature and behavior of an entrepreneur and its dimensions toward risk taking, proactiveness and the aggressiveness. How all these can lead to entrepreneurship through (EO) also formed the vanguard of modern enterprises. The creation of a country’s wealth and dynamism depends upon the entrepreneurial orientation of its firms and this, in turn, relies fundamentally on the capabilities of its entrepreneurs and managers.


INTRODUCTION
One of the main challenges in defining a cross-country SME is the absence of a universal definition of what constitutes an SME. A number of efforts aim to streamline and harmonize SME definitions (OECD, 2004), although the heterogeneity of SMEs themselves and the nature of the economy, they operate in might mean that establishing a global definition is not feasible. Oshagbemi (1982)  Small and medium scale Enterprises (SMEs) are as much an important economic catalyst in industrialised countries as they are in the developing world. In many developed countries, more than 98% of all enterprises belong to the SME sector. 80% of the total industrial labour force in Japan, 50% in Germany and 46% in the USA are employed in smaller firms. In USA, small business contributes nearly 39% to the national income. Udechukwu (2009) posit that, contrary to the general impression, Figures in many developed countries are even higher. In the past three decades, Nigeria as developing countries has observed a progressive business ownership, particularly in micro and small businesses in the informal sector. Their involvement in business ownership has not only affected household economies and division of labour but also bears significant impact on the way Nigerian do business. Small and Medium Enterprises (SMEs) have been the backbone of economic growth of an economy in driving industrial development (Hoq, Ha, & Said, (2009) (2000) Small-and medium-scale enterprises (SMEs) are a very heterogeneous group. They include a wide variety of forms -village handicraft makers, small machine shops, restaurants, and computer software firms -that possess a wide range of sophistication and skills, and operate in very different markets and social environments. Their owners may or may not be poor. Some are dynamic, innovative, and growth-oriented; others are traditional "lifestyle" enterprises that are satisfied to remain small. According to Matlay, H Westhead, P, (2005), "SMEs make significant contributions to the socioeconomic and political environment of most developed and developing nations as well In some countries, SME owners and workers are (or are perceived to be) dominated by members of particular ethnic groups, such as the native pribumi in Indonesia or indigenous groups in Bolivia, the Chinese in Malaysia and the Igbos in Nigeria. According to miller (1983, p.780): in general theorist would not call a firm entrepreneurial if it changed its technology or product line-… simply by directly imitating competitors while refusing to take any risks. Some proactiveness would be essential as well. By the same token, risk-taking firms that are highly leveraged financially are not necessarily entrepreneurial. They must engage in product-market or technological innovation.
In a global context, a general definition of SMEs using size and scale of operation is not easy, but within the fixed coordinates of national boundaries, (Nigeria) it might be relatively easier.
At the 13th Council meeting of the National Council on Industry held in July, 2001 Micro, Small and Medium Enterprises (MSMEs) were defined by the Council as follows: Micro/Cottage Industry An industry with a labour size of not more than 10 workers, or total cost of not more than N1.50 million, including working capital but excluding the cost of land.
Small-scale Industry An industry with a labor size of 11-100 workers or a total cost of not more thanN50 million, including working capital but excluding the cost of land.
Medium Scale Industry: An industry with a labour size of between 101-300 workers or a total cost of over N50 million but not more than N200 million, including working capital but excluding the cost of land. A large scale industry with a labour size of over 300 workers or a total cost of over N200 million, including working capital but excluding the cost of land. All this at a time Nigeria has devalued her currency. Small and Medium Size Enterprises (SME) are the most common employers across the world. In 48 out of 76 nations covered in Ayyagari, Beck and Demirgüç-Kunt (2007), SMEs employed more than 50% of the formal workforce. In addition, Ayyagari, Demirgüç-Contained Vojislav (2011) finds that small firms and mature firms have the highest levels of total employment and small firms and young firms have the highest rates of job creation.SMEs are a fundamental part of a dynamic and healthy economy.
Nigeria as a developing country with the introduction of the National Policy on MSMEs has addressed the issue of definition as to what constitutes micro, small and medium enterprises. The definition adopts a classification based on dual criteria, employment and assets (excluding land and buildings) as shown below (see Table 1 Micro Enterprises are those enterprises whose total assets (excluding land and buildings) are less than Five Million Naira with a workforce not exceeding ten employees. Small Enterprises are those enterprises whose total assets (excluding land and building) are above Five Million Naira but not exceeding Fifty Million Naira with a total workforce of above ten, but not exceeding forty-nine employees. Medium Enterprises are those enterprises with total assets excluding land and building) are above Fifty Million Naira, but not exceeding Five Hundred Million Naira with a total workforce of between 50 and 199 employees. If there exists a conflict on classification between employment and asset criteria (for example, if an enterprise has assets worth seven million Naira (N7M) but employs 7 persons), the employment-based classification will take precedence and the enterprise would be regarded as micro. The Micro, Small and Medium Enterprises Sub-sector has been identified as one of the critical elements to the achievement of the country"s vision 20-2020. MEMEs preliminary report (2010) The sub-sector has been globally acknowledged as the engine that drives the socioeconomic transformation of both the developing and developed countries. A nurtured and the well structured (MSMEs) sector contributes significantly to employment generation, wealth creation, poverty reduction and sustainable economic growth and development. In parallel to this, the role of entrepreneurs has been undeniable and can never be circumvented. It must be known that entrepreneurs have to be entrepreneurial oriented and improve the level of entrepreneurial in order to strengthen the resilience of the economy in a competitive and challenging environment.
The best of all the best criterion for entrepreneurs who want to be successful which has been argued by researchers is requiring them to have an Entrepreneurial Orientation (EO) Lumpin &   Covin and Adler (1989) suggest that the strength of the relationship between entrepreneurs' orientation and firm performance is contingent upon the set of business practices and competitive tactics chosen by the firm.
Entrepreneurial Orientation is defined as the willingness of firms to display proactive and innovative actions and to take calculated risks in an effort to create and exploit environment, opportunities (Kreiser 2002;Covin & Slevin, 1989;Miller, 1983;Miller & Friesen, 1982). The several of the dimensions of EO such as innovation, pro-activeness and risk taking qualities will be imitated and significant to the growth and business performance of SMEs in the area (Fairoz, 2010).
In addition, EO (Madsen, 2007b) may be used as a medium by management to discover and exploit opportunities and implicitly affects firm performance.
Schollhammer (1982) sited "Entrpreneurship is the key element for gaining competitive advantage and consequently greater financial rewards. " Accordingly, any system or "macro" models of entrepreneurship, and certainly any model of entreprenership as firm behavior, would be remiss to ignore or subordinate the firm performance .  Lumpkin and Dess (2001) found a positive relationship, but concluded that the relationship is not a simple one but contingent upon environmental conditions. However, Brown and Kirchhoff (1997) failed to identify any direct impact of the environmental variables upon the relationship between EO and firm performance.
This study is intended to contribute to the precarious dearth of small and medium enterprise in Nigeria and highlight the importance EO as the remedy for the productivity of the SMEs and performance of SMEs in Nigeria and West Africa, to also shed light on the intricacies of the effects of EO on firm performance by X-raying the contributions of the SMEs in Nigeria. Hence, it will enriches the knowledge of the contributions of EO influence the productivity. Additionally, it will also consider the attitudes of entrepreneur and its influence on the EO which will lead to productivity, so that it will stop the mis-specification of the relationship of how EO is being driven and executed across the functional activities of SMEs.

LOCUS OF SME IN NIGERIA ECONOMY.
SMEs are major contributors to private sector employment in Nigeria Empirical studies have shown that SMEs contribute to over 55% of GDP and over 65% of total employment in high income countries.SMEs and informal enterprises, account for over 60% of GDP and over 70% of total employment in low income countries, while they contribute about 70% of GDP and 95% of total employment in middle income countries. SMEs also play significant contribution in the transition of agriculture-led economies to industrial ones furnishing plain opportunities for processing activities which can generate a sustainable source of revenue and enhance the development process.
Small and Medium-sized Enterprises (SMEs) in Nigeria, as defined by Small and Medium Industries Equity Investment Scheme (SMIEIS), are enterprises with a total capital employed not less than N1.5 million, but not exceeding N200 million, including working capital, but excluding the cost of land and/or with a staff strength of not less than 10 and not more than 300. In this work, this definition was adopted, however an observation of some of the surveyed SMEs are with a total capital less than N1.5 million and a lower staff strength.  Nigeria SMEs adopted a common definition of SMEs to fulfill the criteria in the various sectors and subsectors, SMEs in Nigeria is based on three factors namely; Acitivity, turnover, and size.
An enterprise is considered to be an SME based on the annual turnover or number of full time employees, Roslida (2011) a report by SME survey report 2010/2011, the survey showed that there were 22,918 total establishments in Nigeria see (table 3)    Building and Construction: Activities in this sector can be classified into two distinct groups; building such as residential and non-residential and other construction which includes roads, bridges, dams, airport, etc. In every aspect of this sector in Nigeria SMEs can be found either at the local government, state or national level. Activities in this sector are more on the building of residential and non-residential houses by both the private and public sector.

ENTREPRENEURIAL ORIENTATION AND THE PRODUCTIVITY OF SME IN NIGERIA
In realization of the vital contributions of SMEs to the attainment of the nation's economic development objectives, The government (at the federal and state levels) in Nigeria continues to make a number of schemes to support this Subsector In realization of the vital contributions of SMEs to the attainment of the nation's economic development objectives, the government (at the federal and state levels) in Nigeria continues to make a number of schemes to support this Subsector problem in Nigeria. Thus, their contributions to the industrialization process are still generally low when compared with other countries of South East Asia. The development of the SME sub-sector has been constrained by a number of factors, both internal and external, despite the efforts of successive governments to promote the sub-sector.These factors include: i.
Inconsistence policy measure ii.
Unstable macro-economic environment iii Poor infrastructural facilities, i.e. roads/railway system, water supply, electricity, telecommunications, etc. This is in line with Giwa (2001) on the problems of the Nigerian industrial sector. Inefficiency and effectiveness of the institutional support systems for SMEs. In addition to the above, internal factors that handicap the SMEs in the industrialization process in Nigeria include: i.
Low levels of skills: technical and managerial. To buttress the above, Lewis (1977) opined that what Nigerian entrepreneurs lack most is managerial competence. ii. Inability to effectively compete in the local, domestic and the international export markets because the home market is saturated with cheap imported products, poor quality of products or the unfamiliarity with the vagaries of export procedures. In line with the foregoing, Giwa (2001) opined that the influx of fake and substandard products, under invoicing, dumping and malpractices at our ports, placing imported goods at an undue advantage over local manufacturers, are some of the most damaging issues affecting the manufacturing industry. iii. Low levels of process technologies iv. Lack of productive resources. With respect to resources, Ogun and Anyanwu (1999) consider inadequate funding (finance) to be paramount.
According to Amao (1997), the most intractable of these problems is poor access to capital. So wide is the credibility gap that most banks prefer to pay the stipulated government penalty rather than carry out a government directive that a percentage of their funds be set aside to finance SMEs. It is pertinent to reiterate that Nigerian SMEs are usually by sole ownerships (very little or limited liability companies) with limited (though intensive) labor force, centralized administration and management, less access to finance (long term and medium term) and high failure rate. This was supported by the recent report by the Nigeria national bureau of statistics and SMEDAN (2012) pointed out of all the factors militaling against SMEs in Nigeria lack of finance also came first (2) Lack of work space since after the finance where will you get space will be the next problem to fight against (  Source : Nigeria national bureau of statistics (2014) Ogunsiji & Ladanu (2010) opines that "an entrepreneur is a significant phenomenon at ensuring improved productivity and hence increased performance of the SME". The entrepreneur undoubtedly vital aspect of production Ogunsiji & Ladanu, (2010). The one who, according to McClelland (1961;1971), implements control over production, which is not simply for his consumption. Furthermore, he discovered the psychological aspect in explaining the need for achievement as the motivational factor for the entrepreneurs to execute better.  Dunkelberg and Cooper (1982); Hornaday and Aboud (1971); Timmons (1978); EO is a firmlevel construct (Covin and Slevin (1991) that is closely linked to strategic management and the strategic decision-making process (Birkinshaw 1997;Burgelman (1983); Lumpkin and Dess (1996); Naman and Slevin (1993) EO is a process construct that concerns 'the processes, practices, and decision-making activities that lead to new entry ; Wiklund and Shepherd 2003 conceptualized EO as a firm-level strategymaking process that firms use to enact their organizational purpose, sustain their vision, and create competitive advantages. Hence, EO involves the inten-tions and actions of individual business owners and/or key management decision makers functioning in the complex process of making strategic choices aimed at the achievement of desired business objectives (financial and non-financial). Therefore, EO is not only an individual phenomenal, but also a firm-level phenomenon or construct. The firm objectives are an extension of the individual entrepreneurial manager objectives. Consequently, firm level behavior is but a reflection of the underlying business posture of the owner/manager.
A popular measure for operationalizing EO in both the entrepreneurship and the strategic management was developed by Covin and Slevin (1989), based on the earlier work of Khandwalla (1977) and Miller and Friesen (1982). This measure is known as the three dimensions of EO (3D of EO). In developing this measure, Covin and Slevin theorized that the 3D of EO -innovation, proactiveness, and risk-taking -acted together to 'comprise a basic uni-dimensional strategic orientation' and should be aggregated together when conducting research in the field of entrepreneurship Covin and Slevin (1989). Drawing on the previous research, Lumpkin and Dess (1996) explained EO in five dimensions: autonomy,innovativeness, risk-taking, proactiveness, and competitive aggressiveness. These five dimensions of EO construct vary independently and firms can have different combinations of these five dimensions. Lumpkin and Dess (2001) found that the EO dimensions of proactiveness and competitive aggressiveness are only conceptually distinct, but they do not vary with each other. Each considered the internal structure of the firm and the external environment within which the firm operates; however, the representations of these factors and relationships are all different. The Covin and Slevin (1991) presents a less generic view of corporate entrepreneurship, focusing on the concept of EO defined as firm-level behavior. The key points of the external variable, strategic variables. And internal variables all have a strong effect on EO. Entrepreneurial orientation affects the three categories of variables, although weakly. EO also strongly affects firm performance, and in the reverse, firm performance has a weaker effect on EO. Another key feature of the Covin and Slevin (1991) indicates that the three categories of variables (internal, strategic, and external) have a moderating effect on the relationship between EO and productivity. This is in line with other studies Covin and Slevin (1991); Lumpkin and Dess (1996);Miller (1983); Venkatraman (1989) on the relationship between EO and performance of SMEs. Therefore, the EO of a firm reveals itself by the evidence of how innovative is the firm, the firm's attitude to risk-taking, how proactive (i.e. alert) is it to business opportunities, and how responsive is it to trends and developments in the marketplace. Hence, the sub-variables or parameters explaining the firm innovativeness are new product development, emphasis on Research and Development (R&D), and reorganization; risk-taking is explained by proclivity for risky projects, risk-handling, and reward style. Proactiveness is described by environmental scanning, opportunity identification methods, and firms alertness to competition in the marketplace. How the firms reflect these parameters determines the firm's orientation with respect to innovativeness, risk-taking, and proactiveness, and the aggregation of these three dimensional variables explains the firm's EO. Thus, they individually and collectively affect the EO, and the EO affects the productivity.

CONCLUSION AND RECOMMENDATIONS
Entrepreneurial Orientation has a significant remedy for productivity, but the direction of the relation is not static, In situations like this if the Nigeria government wants to meet up with with 2020 where Nigeria will be one of the 20 largest economies in the world, able to consolidate its leadership role in Africa and establish itself as a significant player in the global economic and political arena. As has embarked on the journey towards vision 20-2020, where to become a high income and high productivity economy will be undeniable. Nigeria government must create conducive environment to unleash economic growth which can be done by developing the SMEs as the bedrock of growth and innovation .For Nigeria ,where several issues as unemployment which remain at 23.90% in 2014, poverty rate remain at world bank data for poverty incidence at 46.0% in 2010 growth rate at 7.4% in 2014, challenges and uncertainties at the global level (globalization, liberalization and fake and supe standize goods from countries from China, India, intensified the competition for trade and investment) and internal challenges (providing a conducive investment environment and high quality human capital) are still mingle around the corner We furthermore reflect on entrepreneurial orientation as an innovation that not only holistic but proactive in action to materialize the conception of new resources and in new ways of combining available resources for increased productivity. The entrepreneurs need to have a cognitive perspective as with the way the entrepreneurs think and how they arrive at decisions, thus lead to the entrepreneurial orientation of the SMEs and ultimately lead to increased productivity.