SOCIAL ENTREPRENEURSHIP AND SME’S PERFORMANCE: A STUDY OF NIGERIAN ASSOCIATION OF SMALL - SCALE INDUSTRALIST LAGOS STATE

The role of entrepreneurship in boosting economic activity and social development is widely recognised. The field of social entrepreneurship is rapidly expanding, attracting a large number of volunteers. Today's challenges for SMEs such as unstable exchange rates, political instability, inflation, higher transaction and production costs, insufficient infrastructure, inadequate technology and information are ultimate the economic characteristics of a developing country. Along with social issues, environmental issues are a focus of social entrepreneurship. Hence, this study investigates the influence of social entrepreneurship on the performance of SMEs in Lagos state. The Social Issue Management Valence Theory and Resource-Based View were used to explain the issues raised. This study adopted a descriptive design because it sought to answer the why, when and how social entrepreneurship has influenced the performance of SMEs. The study population consisted of 272 owner-managers of SMEs members of the Nigerian Association of Small Scale Industrialists (NASSI). The use of regression analysis was applied to predict the effect of social entrepreneurship on SMEs’ performance. The findings show that both social entrepreneurship significantly impacts SMEs’ performance. The results also indicate that social capital and value significantly are significant predictors of social entrepreneurship on the performance of social enterprises. Social capital was conceptualised skills and experience, and it was revealed that the majority of the business entrepreneurs have the requisite knowledge of social entrepreneurship. The study also concluded that appropriate social entrepreneurship orientation has the potential of improving organisational performance and consequently improves the performance of SMEs. The study recommended that SMEs owners and managers constantly improve their social responsibility to enhance their chances of competing in the current market environment. SMEs should adopt and be keen on the usage of social value. Networks are instrumental for SMEs for this do not only improve their business performance but also significantly contribute to the global competitiveness