Effect of Strategic Innovation on Entrepreneurial Development of Small and Medium Scale Agricultural Enterprises in Niger-Delta.

Abstract

The study centres on strategic innovation and entrepreneurial development of small and medium scale enterprises (SMEs) in the agricultural sector, focusing mainly in the oil palm sector in the Niger Delta region of Nigeria. The research design adopted for the work is the survey method. A sample of 525 respondents were drawn from 20 SMEs in four oil palm clusters, one each from one Local Government Area from the four selected Niger Delta States of Akwa-Ibom, Delta, Imo and Rivers. Six research hypotheses were tested in the study applying simple regression with SPSS version 21. The six research hypotheses were all accepted as against the null hypotheses, indicating that the proxies of the predictor variable (strategic innovation) significantly affected those of the criterion variables of interest (entrepreneurial development) The statements of findings and the corresponding statistical results are as follows: Process innovation significantly promoted employment generation of small and medium scale enterprises (SMEs) in the agricultural sector (Oil Palm produce) (F (1, 523) = 8540.89, p< 0.05);Product innovation to a very high degree promoted profitability in small and medium scale enterprises (SMEs) in the agricultural sector (Oil Palm produce)(F (1, 523) = 3020.75, p< 0.05);Position innovation (Market innovation) to a large extent positively affected the business survival of small and medium scale enterprises (SMEs) in the agricultural sector (Oil Palm Produce)F (1, 523) = 2402.99, p< 0.05); Paradigm innovation (Business Model) to a very high degree affected the business sustainability of small and medium scale enterprises (SMEs) in the agricultural sector (Oil Palm produce)(F (1, 523) = 11514.51) p< 0.05);Frugal innovation to a large extent enhanced poverty alleviation by small and medium scale enterprises (SMEs) in the agricultural sector (Oil Palm produce) (F (1, 523) = 3496.97, p< 0.05) and Technological innovation significantly promoted business growth of small and medium scale enterprises (SMEs) in the agricultural sector (Oil Palm produce)(F (1, 523) = 4805.37, p< 0.05. It is on the strength of these hypotheses that the study concludes that strategic innovation significantly affected entrepreneurial development of SMEs in the agricultural sector particularly the oil palm sector. In the light of the foregoing conclusion, the following recommendations were made: 1) SMEs in the agricultural sector (Oil Palm produce) should be encouraged by governments and other stakeholders as well as donor agencies to think beyond the basic and traditional processing methods. They should consider and explore improved technology that can help to search and facilitate the production of other products within the value chain in addition to the existing product line. 2) Government, corporate and donor organisations should come up with policy drive that can help sector participants in small and medium scale enterprises (SMEs) in the agricultural sector (Oil Palm produce) to think and move beyond the basic traditional processing methods. This will enable them consider and explore improved technology that can help to explore and facilitate the production of other products within the value chain in addition to the existing product line. This in turn could lead to growth in this sector which over time can help move the nation from the present almost monolithic economy to a diversified one.