Entrepreneurial Self-Efficacy and Organizational Health of Small Businesses in the Pharmaceutical Industry in Rivers State, Nigeria

Abstract

This study examined the relationship between entrepreneurial self-efficacy and the organizational health of small businesses in the pharmaceutical industry in Rivers State, Nigeria. Entrepreneurial self-efficacy was operationalized through four dimensions (openness, adaptability, results and rewards, and organization), while organizational health was assessed through profitability, revenue growth, customer satisfaction, and innovation. A descriptive survey design was adopted. Using a structured questionnaire (overall Cronbach’s α = .84), data were collected from entrepreneurs and senior managers of registered small pharmaceutical businesses; 102 of 109 distributed questionnaires were validly completed (93.6% response rate). Hypotheses were tested using regression analysis at the .05 level of significance. Openness significantly predicted profitability (β = .398, p< .05), adaptability significantly predicted innovation (β = .487, p< .05), results and rewards significantly predicted customer satisfaction (β = .312, p< .05), and organizational structure significantly predicted revenue growth (β = .276, p< .05). Socio-cultural factors, namely early skill inculcation, hard work, and belief in God, were reported to support organizational performance, whereas cultural barriers constrained women’s participation in the industry. The study concludes that entrepreneurial self-efficacy is an important resource for organizational health and recommends that entrepreneurs cultivate open and adaptive cultures, embrace technological change, design transparent reward systems, and dismantle barriers to female participation.