Navigating SMEs Viability: The Interplay of Resource Accessibility and Entrepreneurial Mindset in Optimizing SME Performance in Northeastern Nigeria

Abstract

This study examines the interplay between resource accessibility and the entrepreneurial mindset in optimizing the performance of Small and Medium Enterprises (SMEs) within the fragile, post-conflict context of Northeastern Nigeria. Despite various institutional support interventions, many SMEs in this region continue to struggle, revealing a "performance gap" where the mere provision of "hard" resources—such as finance, skills, innovation, and ICT—fails to guarantee sustainable growth. Grounded in the Resource-Based View (RBV) and Growth Mindset Theory, this research addresses the critical gap in understanding how cognitive frameworks influence the effective deployment of organizational assets. Adopting a quantitative, cross-sectional survey design, data were collected from 398 SME owners and managers (a 79.9% response rate) across the six states of the region and analyzed via Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that finance (β=0.21, p<0.01), skills (β=0.18,p<0.01), innovation (β=0.24,p<0.01), and ICT (β=0.20,p<0.01) each have significant positive direct effects on entrepreneurial performance. Crucially, the entrepreneurial mindset acts as a significant mediator between these resources and performance (β=0.27, p<0.001), serving as a "force multiplier" that enables entrepreneurs to convert static inputs into dynamic competitive advantages. Consequently, this study recommends that policymakers transition from supply-side paradigms to integrated support models that systematically pair capital injection with mindset-oriented mentorship and strategic coaching. Future research is encouraged to employ longitudinal designs to further observe how this cognitive mediation evolves over time.