Performance of small and medium enterprises (SMES) and entrepreneurial optimism in Jigawa state

Abstract

This study paper examines the performance of small and medium enterprises (SMES) and  entrepreneurial optimism in Jigawa state. The study used survey data from a simple random sample of 375 respondents which includes SME owners and managers in Jigawa state. The findings indicate that optimism plays a crucial role in enhancing SME performance by fostering resilience, adaptability, and a strong work ethic. Most entrepreneurs demonstrated a high level of optimism, as reflected in their ability to cope with stress, maintain a positive outlook, and take calculated risks. These attributes contribute significantly to business sustainability and growth, aligning with prior research that links optimism to business success. However, the study also highlights that not all SME owners exhibit the same level of emotional resilience. A segment of respondents struggled with handling unpleasant emotions and uncertainty, which could hinder business performance. The study recommends that SME owners in Jigawa State undergo targeted entrepreneurship training programs focused on balancing optimism with strategic risk management. Government agencies and financial institutions should provide mentorship, stress management workshops, and financial literacy programs to enhance decision-making skills. Additionally, policies supporting access to funding and business support services should be strengthened to help entrepreneurs sustain growth. Future research should explore the long-term impact of entrepreneurial optimism on SME performance while considering industry-specific challenges and external economic factors that influence business sustainability in Jigawa State.