IMPACT OF ENTREPRENEURIAL CHARACTERISTICS AND ENTREPRENEURIAL DIGITAL INNOVATION TEAMS ON OPERATIONAL EFFICIENCY OF SMES IN ZAMFARA

Operational inefficiency remains a major barrier to SME growth in Nigeria. This study investigates how entrepreneurial characteristics and entrepreneurial digital innovation teams (EDITs) influence the operational efficiency of small and medium enterprises (SMEs) in Zamfara State. The objective was to examine the extent to which internal entrepreneurial traits and team-based digital strategies contribute to improving productivity and minimizing waste in SME operations. The study focused on two independent variables; entrepreneurial characteristics and EDITs, and one dependent variable, operational efficiency. A quantitative research approach was adopted using a cross-sectional survey design. The population comprised 10,003 registered SMEs in Zamfara, from which a sample of 363 respondents was selected using a multistage sampling technique. Data were collected through a structured questionnaire and analyzed using correlation, and multiple regression analysis. Findings revealed that both entrepreneurial characteristics and EDITs had significant positive effects on operational efficiency. The findings support the dynamic capabilities theory, demonstrating how internal capabilities enable SMEs to optimise operations. The results suggest that SME leaders with proactive, innovative, and risk-tolerant traits, as well as firms that adopt team-driven digital innovation, are more likely to achieve optimal operational performance. The study concludes that internal capacities, both individual and structural, play a vital role in enhancing SME efficiency in underdeveloped regions. It is recommended that stakeholders provide targeted training to develop entrepreneurial competencies and support the establishment of digital innovation teams through policy incentives and digital capacity-building programs. These interventions can strengthen internal mechanisms and boost SME performance across Nigeria.