A POST-COVID EMPIRICAL STUDY OF ENTREPRENEURIAL RESILIENCE AND IMPLICATIONS FOR SURVIVAL OF SMES IN KWARA STATE

Abstract

The survival of Small and Medium-sized Enterprises (SMEs) in the post-COVID-19 era has become increasingly uncertain due to unprecedented disruptions that exposed their structural and psychological vulnerabilities, thereby warranting an investigation into the internal capacities that support business continuity. This study examined the effect of entrepreneurial resilience, measured through psychological capital (hope, self-efficacy, resilience, and optimism) and strategic flexibility (innovation adaptation and decision-making agility) on the survival of SMEs in Kwara State. A cross-sectional survey research design with a quantitative approach was employed, using a structured, closed-ended questionnaire administered to a sample of 343 SMEs selected from a population of 3,124 registered businesses, out of which 312 responses were valid. Data were analyzed using multiple linear regression. The findings revealed that psychological capital significantly explained 70.9% of the variance in SME survival (R² = 0.709, F = 186.687, p < 0.05), while strategic flexibility accounted for 52.7% (R² = 0.527, F = 172.338, p < 0.05), with all individual predictors showing positive and statistically significant effects (p < 0.001). The study concluded that internal entrepreneurial capacities are essential drivers of SME survival in turbulent environments and recommended that stakeholders prioritize psychological and strategic capability development through policy, training, and innovation-support mechanisms tailored to resilience enhancement.