THE CORRELATION BETWEEN ENTREPRENEURIAL RISK-TAKING AND PROFIT MAKING AMONG MICRO, SMALL AND MEDIUM ENTERPRISES IN NIGER STATE

Abstract

Entrepreneurial risk-taking is an important factor in business success, and there is a growing body of research on the relationship between risk-taking and profit-making in micro, small, and medium enterprises. The relationship between risk-taking ability and profit-making among micro, small, and medium enterprises (MSMEs) in Niger State was explored in this study. A survey research design was adopted, and data was collected from the population sample size of 400 MSMEs in Niger State using a standardized questionnaire. The findings revealed that there is a significant positive relationship between risk-taking and profitability (R = 0.998a, p < 0.05). That is, risk-taking explained approximately 99.6% of the variations in the level of profitability. This study concluded that moderate risk-taking and profit-making are key factors in achieving higher operational performance among micro, small, and medium enterprises. It was recommended that micro, small, and medium enterprise owners in Niger State prioritize risk-taking within a moderate range, as doing so can help them achieve higher profits and remain competitive in the long term