Business Re-engineering and Entrepreneurial Growth of Small and Medium-Sized Enterprises (SMEs) in Imo State, Nigeria.

Abstract:

This study examined the effect of business re-engineering on entrepreneurial growth among small and medium-sized enterprises (SMEs) in Imo State, Nigeria, drawing on the Resource-Based View, Dynamic Capabilities Theory, and Business Process Re-engineering theory. The study adopted a cross sectional research design and the population comprised 1,886 registered SMEs, from which a sample size of 330 SME owners and managers was determined using Taro Yamane’s formula. Data were collected using a structured questionnaire measuring process re-engineering, technological re-engineering, sales growth, and employment growth, using descriptive and inferential statistics. The instrument was validated by experts in Business Management, while reliability was confirmed using Cronbach’s Alpha coefficients ranging from 0.851 to 0.896. Of the 330 questionnaires administered, 293 were correctly completed and used for analysis, representing an 88.79% usable response rate. Hypotheses were tested using multiple regression analysis with aid of statistical package for social sciences version 28.0 at a 5% level of significance. Findings revealed that process re-engineering and technological re-engineering have significant positive effects on sales and employment growth of SMEs. The regression models explained 68% of the variance in sales growth and 66% of the variance in employment growth, indicating strong explanatory power. The study concludes that business re-engineering is a critical driver of entrepreneurial growth among SMEs. It recommends that SME managers prioritize process optimization and adoption of digital tools, while policymakers should strengthen capacity-building initiatives and technological support to enhance SME competitiveness and sustainable growth.