SOCIAL SKILLS AS A DRIVER OF ENTREPRENEURIAL PERFORMANCE: EVIDENCE FROM SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN IKORODU LOCAL GOVERNMENT AREA OF LAGOS STATE, NIGERIA

Social skills refer to the abilities and strategies used to effectively interact, communicate, and build relationships with others. The study adopted a survey research design, with the main objective of evaluating the impact of social skills on the entrepreneurial performance of small and medium enterprises (SMEs) in Ikorodu Local Government Area of Lagos State, Nigeria. The population of the study comprised 1,441 SMEs in the study area, from which a sample size of 313 was determined using the Taro Yamane formula at a 95% confidence level. A total of 264 questionnaires were retrieved and used for analysis, representing a response rate of 84.3%.

The four hypotheses formulated for the study were tested using multiple linear regression at a 5% level of significance. Drawing on a quantitative approach, the analysis revealed that conflict resolution ability and empathy skills have a positive and significant relationship with entrepreneurial performance of SMEs (Adj. R² = 0.92 and Adj. R² = 0.91 respectively, p < 0.05). In contrast, communication skills and emotional intelligence were found to have weak relationships with entrepreneurial performance (Adj. R² = 0.184 and Adj. R² = 0.060 respectively, p > 0.05).

The study therefore concluded that entrepreneurs of SMEs who possess strong social skills in conflict resolution and empathy tend to perform better in their businesses. It further highlighted the importance of social skills for entrepreneurial success in today’s complex and dynamic business environment. Based on these findings, the study recommended that entrepreneurs, particularly SME owners, should be encouraged to periodically assess their social skills and identify areas for improvement. In addition, policymakers should provide support to initiate and promote social skills development among SME owners. The study also suggested that future research should adopt a longitudinal approach to examine long-term impacts.