Entrepreneurial Network and Innovative Performance of Small and Medium- Sized Enterprises (SMES) in the Federal Capital Territory (FCT), Abuja

Abstract

This study examines the relationship between entrepreneurial networks and SME innovation in the Federal Capital Territory (FCT), Abuja. Adopting a descriptive survey research design, the study systematically collects and analyzes data from 382 SMEs, selected through a stratified random sampling technique. Primary data is gathered using a structured questionnaire targeting SME owners and managers, capturing key variables such as network competence, network capability, and innovation performance. The reliability of the research instrument is confirmed using Cronbach’s alpha, and data analysis is conducted using both descriptive and inferential statistical methods. Multiple regression analysis is employed to determine the impact of entrepreneurial networks on SME innovation, with data analyzed using the Statistical Package for Social Sciences (SPSS) version 26. Findings reveal that both network competence and network capability significantly influence SME innovation, supporting the network capacity theory, which emphasizes the role of strategic networking in accessing external knowledge, partnerships, and financial resources. Despite these advantages, structural barriers hinder the full potential of networking activities among SMEs. The study concludes that entrepreneurial networks play a critical role in enhancing SME innovation. The study recommends that SMEs actively participate in professional networking events, business associations, and digital platforms to enhance their network competence. Additionally, government institutions should implement policies that foster SME networking by reducing regulatory barriers and facilitating business collaborations, including public-private partnerships. These measures will enhance the innovative capacity and competitiveness of SMEs in FCT Abuja.