Popoola Semirat Olasumbo11

KWARA STATE UNIVERSITY, MALETE
The University for Community Development

Faculty of Humanities, Management and Social Sciences
IMPACT OF CREATIVITY AND INNOVATION ON

PERFORMANCE OF SELECETD BUSINESSES IN MALETE
BY
POPOOLA SEMIRAT OLASUMBO
17/27BA/740
September, 2021
IMPACT OF CREATIVITY AND INNOVATION ON
PERFORMANCE OF SELECETD BUSINESSES IN MALETE
BY
POPOOLA SEMIRAT OLASUMBO
17/27BA/740
Being A Research Project Submitted To Department Of Business

Administration, Faculty Of Humanities, Management And Social Sciences,
Kwara State University, Malete, Kwara State In Partial Fulfillment Of The
Requirements For Award Of Bachelor Of Science Degree (Hons) B.Sc. In
Business Administration
September 2021
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DECLARATION
I hereby declare that this research project titled “ Impact of Creativity and
Innovation on Performance of Selected Business in Malete . Is my own
work and has not been submitted by any other person for any degree or qualification at
any higher institution. I also declare that the information provided therein is mine and
those that are not mine/ours are properly acknowledged.
Semirat Olasumbo Popoola

_____________________________ __________________
Name of Student Signature and Date
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CERTIFICATION
This is to certify that this project titled “ Impact of Creativity and Innovation on
Performance of Selected Business in Malete’’ was carried out by Semirat
Olasumbo Popoola the project has been read and approved as meeting the requirement
for the award of Bachelor of Science (B.Sc) Degree in Business Administration,
Department of Business and Entrepreneurship, Faculty of Humanities, Management and,
Social Science Kwara State University, Malete.
_________________________ ____________________
MR. Ibrahim Lawal Date
Project supervisor
___________________________ ____________________
Dr. Abu Zekeri Date
Head of department
_________________________ ____________________
External Examiner Date
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DEDICATION
I dedicate this Project to the magnificence of Almighty ALLAH
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ACKNOWLEDGEMENTS
My deepest gratitude goes to God who has provided all that was needed to complete this
project and the program for which it was undertaken for. There was never lack or want.
Throughout this entire study, He took care of everything that would have stopped me in
my tracks and strengthened me even through my most difficult times. I sincerely
appreciate all of whom I have had direct contact with and who have impacted me during
this program. Additionally, I would like to thank the Vice Chancellor of Kwara State
University, Malete, the Dean of Faculty of Humanities, Management and Social
Sciences. I would also like to appreciate my project supervisor Mr. Ibrahim Lawal, The
Head of Department of Business and Entrepreneurship, Dr Abu Zekeri. Importantly, I say
a very big thanks you. My sincere appreciation also goes to the entire academic staff of
the Department of Business and Entrepreneurship Studies; Dr. Issa AbdulRaheem, Dr.
Aminu Brimah, Dr. Ismael Yusuf, Dr. Mustapa Abdulrahman, Dr. Nurudeen Ahmed Dr.
Yahaya B. Dr. Bisayo Otokiti, Mr. Adebola Damilare, Mr. Adebayo Philip, Mr. Ibrahim
Lawal and Mr. Ibrahim Hamzat, Mr Femi Olawoyin, Miss Blessing Oluyomi. My sincere
appreciation also goes to my parent Alhaji and Alhaja popoola for their strong support to
make my dreams come true. May Almighty Allah enrich and bless your days. To my
lovely sisters Popoola Hikmat Ajoke you have been a blessed sister to me, and to my
brothers Popoola Selim and Popoola Ridwan AremuI love you all. I will not fail to
acknowledge all previous researchers and authors of books whose works contributed in
no small quota to the achievement of my objectives, your work were like a light in the
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tunnel. And to my guidance in this research project in person of Abdulraheem Hassan
Bayo, I really appreciate your effort.My special thanks to all my friends in whose
company I had so great and experience, Funsho Bashir, Akano Aishat Opeyemi, Babalola
Nafisat , Aderemi Suliat, Sanusi Nafisat , Yusuf saidat , Ojedele Victor, Aliyu
Habibat,Ohunene Latifat, Akeem Idayat And Oyesiji Aminat . Special thanks to all
paramount ex-excos and present thanks for your support and concern, thanks to you all.
Finally I want to say a big thanks to everyone who in one way or the other has
contributed directly or indirectly to the completion of this research project. I shall leave
to remember you all. Thank you very much.
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TABLE OF CONTENTS
FRONT PAGE i
COVER PAGE ii
DECLARATION iii
CERTIFICATION iv
DEDICATION v
ACKNOWLEDGEMENTS vi
TABLE OF CONTENTS vii
ABSTRACT viii
CHAPTER ONE: INTRODUCTION
1.1 Background To The Study 1
1.2 Statement of Research Problem 2
1.3 Objectives of the Study 5
1.4 Research Questions 5
1.5 Research Hypotheses 6
1.6 Significance of the Study 6
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1.7 Scope of the Study 7
1.8 Limitations of Study 7
1.9 Outline of Study 7
1.10 Operationalization 8
1.11 Definition of Terms 9
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction 11
2.1 Concept Creativity and Innovation 11
2.1.1 Creativity 11
2.1.2 Innovation 13
2.1.3 Dimensions Of Creativity And Innovation 13
2.1.3.1 Incremental Innovation 15
2.1.3.2 Disruptive Innovation 15
2.1.3.3 Architectural Innovation 15
2.1.3.4 Radical innovation 16
2.1.3.5 Process innovation 16
2.1.3.6 Product innovation 16
2.1.3.7 Marketing innovation 17
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2.1.3.8 Environmental innovation 17
2.1.4 Importance Of Creativity And Innovation 17
2.1.4.1 Increase productivity 18
2.1.4.2 High overall success 18
2.1.4.3 High overall success 18
2.1.5 Concept of Small and Medium Enterprises 18
2.1.6types of Small and Medium Enterprises (SMES) 19
2.1.6.1 Sole proprietorship 19
2.1.6.2 Partnership 20
2.1.6.3 Cooperative enterprise 21
2.1.7 SMEs Performance 22
2.2 T Theoretical Review 22
2.2.1 Schumpeter’s Innovation Theory 22
2.2.2 McClelland’s Psychological Theory 25
2.2.3 Sociological Theories of Entrepreneurship 27
2.4 Gaps in Literature 33
CHAPTER THREE: METHODOLOGY
3.1 Introduction 34
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3.2 Research Design 34
3.3 Research Methods 34
3.4 Population of Study 34
3.5 Sample size 35
3.6 Sampling Technique 35
3.7 Methods of Data Collection 35
3.8 Method of Data Analysis 37
3.9 3.9 Research Instrument 37
3.10 Validity of Research Instrument 38
3.11 Reliability of Research Instrument 38
3.12 Ethical Consideration 38
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS, INTERPRETATION
AND DISCUSSION OF FINDINGS
4.1 Introduction 40
4.2 Presentation Of Data 40
4.3 Data Analysis and Interpretation 40
4.3.1 Presentation of Data 40
4.3.2 Analysis Of Demographic Data 42
4.4 Test of Hypotheses 54
4.5 Discussion of Results 57
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
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5.1 Introduction 59
5.2 Summary of the work 52
5.3 Findings 60
5.3.1 Theoretical findings 60
5.3.2 Empirical findings 61
5.4 Conclusion 63
5.5 Recommendations 64
5.5.1 De-Limitations Of The Study 64
5.5.2 Suggestions for further studies 64
5.5.3 Contribution to knowledge 65
REFERENCE
APENDIX
xii
ABSTRACT
The research work titled “Impact of creativity and innovation on performance of

selected small businesses in malete” is aimed at giving critically examination and
understanding of creativity and innovation on performance on small businesses.
The objective of the study includes: this study determines if the impact of creativity
and innovation is effective to organization small businesses. This study also
evaluates the impact of creativity and innovation on performance of small
business. The instrument for data collection is a well-structured questionnaire to
curtail respondent from derailing from the instructions;two hypothesis were
postulated and the result derived shows that creativity and innovation has
significant impact on small business performance secondary data for the study
were obtained from the internet and related journals.This Study found that
Creativity and Innovation have direct influence on selected small businesses in
malete The study suggested that improving the performance of business can help
to accomplished their goals.the varriables used for the independent construct
(creativity and innovation) are service innovation, product innovation, process
Innovation and market innovation and while for the dependent constructs are
profitability and productivity.
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1
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
In the 21st century, small business has been considered to be one of the major
contributing factor to the economy of a nation, as little or low amount of capital is
required to kick start a small business in a developing economy country. The beauty of
small business in an economy of a nation is levied with little or no attention as they one
way or the other assist in reducing unemployment, poor standard of living and also
increase in the in the GDP of an economy. Qureshi and Herani (2015), states that SMEs
make considerable contributions toward GDP, income generation, tax contributions,
fostering innovations, job creation, increasing revenue, enhancing human capital,
alleviating poverty, and improving the living standards and quality of life in a nation.
SMEs are also significant sources of work. The word SMEs is seen as a business which is
owned, led by one or a few persons, with direct owner(s) influence in decision making,
and having a relatively small share of the market and relatively low capital requirement.
However, Anthony & Smith (2017), opines that in this world of accelerating
economic globalization, advances in science and technology continue in the blink of an
eye, and knowledge is recognized as a core competence in accumulating wealth, the latter
half of the 20thcentury has seen science and technology compliment land, labor, and
capital as sources of wealth. Knowledge and innovation have come to be recognized as
factors of production. Small and medium enterprises occupy at least 75% of the business
2
world, in regards to service rendering and products sales to individuals. In the quest for
sustainable competitive advantage, companies are finding that lower costs, higher quality
and better customer service are not enough (Idoho, 2016). However, they must be faster,
more flexible, more aggressive and more innovative in order to maintain the competitive
edge they desired.
As the success or failure, of SMEs product be it goods or services, depends
immensely on the strategies and technologies used in developing, maintaining and
sustaining such products or services in the target market. The extent to which these
responsibilities/duties/tasks are successfully carried out is as a result of the unusual skills,
experience and ability possessed by the owner (entrepreneur), of the said business
organization; to effectively co-ordinate the human and material resources in that
organization, in order to achieve the stated organization objectives either to make profit
or community service rendering. There is need for them to be known with a unique
characteristics that will set them out among other entrepreneurs i.e. their creativity and
innovation skills must be fully put into best practices as this will allow for the best
practices and uniqueness in their products and services rendering. SMEs needs to adopt
the best creative and innovative skills as this will also determines the extent to which they
can gain a better and wider market share. Joel (2016), since the word creativity and
innovation has always been at the heart of human endeavor. Allied to innovation, which
creates unexpected value, it is now recognized as central to organizational performance.
Some hold that the capacity to harness intellectual and social capital and to convert that
3
into novel and appropriate things has become the critical organizational requirement of
the age. The shift to knowledge economies has been abrupt and there is a flurry of
interest in creativity and innovation in the workplace.
Furthermore, Creativity and Innovation is considered, quite simply, an imperative
for organizational survival. It may even be the key to some of the biggest challenges
facing the world, such as global warming and sustainable development. Competing in the
twenty-first-century economy will require constant adaptation to shifting market
demands. Failing to fulfill the varied requirements of potential customers may lead to
their loss to more agile competitors. The creative person, according to Ahumanistic
perspective, has the consciousness and the abilities to address crisis in transformative
ways (O’Hara, 2017).
As to this statement, of entrepreneurs to have a creative and innovative mindset,
has led most entrepreneurial business to the implementation of technology in their day-
day activities. Entrepreneurs who are creative and innovative, dares to be different, as
they take the unexplored path and which makes them very passionate about their work
are regarded as been creative and innovative . Individuals who possess creative and
innovative traits take challenges and strive to lead their life with greater success.
Richardosn&Crambell (2014), The personality traits of creativity and innovation include
not having fear to fail, taking failure as a learning experience, and adept at looking at
things differently, and always looking for the next challenges. Innovative and creative
entrepreneurs operate business differently from those in the existing economic order by
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optimizing the use of technology to innovate new products and services. The implication
of this is a creation of new forms of organizations and the exploitation of new raw
materials. Creativity and innovation is not only about hi-tech or of technical matters, but
it can also refer to human applications of useful knowledge that can benefit the
community.
Thus, with a major focus on SMEs, advancements in their day to day activities,
increase in their creativity and innovation skills adoption will provide channel to
accelerate and expand businesses as well as its people, which bears vital importance to
the growth and development of entrepreneurs in the knowledge-based economy. Besides
daily advancements to better structures and strategies are being explored and developed
to help enterprise grow, especially the small and medium ones offering a promising
future within the global market place, thereby being able to expand themselves to
compete in this borderless world, at the same time create, and add value to their business
in order to achieve sustainability.
1.2 Statement of Research Problem
There are thousands of people who have nursed the aspiration to setup their own
business(s). For most the prospect remains just a wishful thought, for others, something
happens in their live which presents an opportunity, which they perceived or make use of,
perhaps an un-expected inheritance; or an event which forces or bring about a change in
direction. But having the capital available to start a business is not enough. However,
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creativity and innovation is very important to development of SMEs, but the SMEs in
Nigeria has not reached its full potential; this could be as a result of low level of
Inadequate service innovation may have unfavorable consequences on profitability, Poor
product innovation may reduce the profitability. Process innovation may decrease the
productivity; Absence of Market innovation may affect the productivity. It is on this note
that this research work impact of creativity and innovation on selected small business in
Malete.
1.3 Objectives of the Study
The main objective of this study is to find out how creativity and innovation helps
to promote organizational performance. The objectives include;
i To investigate the relationship between service Innovation and profitability.
ii To examine the positive relationship between product innovation and
profitability.
iii To ascertain the extent to which process innovation have affect productivity.
iv To determine the relationship between market innovation and productivity.
1.5 Research Questions
This research intends to find answers to the following questions.
i Is there relationship between organization innovation and profitability?
ii Does product innovation have positive relationship with profitability?
iii To what extent process innovation affects productivity?

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iv Is there relationship between market innovation and productivity?
1.5 Research Hypotheses
In view of the research question that this study seeks to answer, the following
hypothesis will be tested.
H01: There is no significant relationship between service innovation and
profitability.
H02: There is no positive relationship between product innovation and profitability.
H03: there is no positive relationship between process innovation and productivity.
H04: There is no significant relationship between market innovation and
productivity.
1.6 Significance of the Study
The research will be valuable reference material for students, organizations and other
interested persons who may want to undertake similar study. Recommendations made by
the study would enable individual, organization to have more insights on how creativity
and innovation is an effective tools for any organization success. Finally, it would enable
organizations to appreciate the effect of creativity and innovation and on organizational
performance.
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1.7 Scope of the Study
This research study is on effect of creativity and innovation on organizational
performance using selected small businesses in Malete, kwara state. The study may cover
all aspect and dimension of creativity and innovation.
1.8 Limitations of Study
The scope of the study will be limited to Small Business in Malete.
1.9 Outline of Study
This sections list in details the various sections in each chapters
Chapter One: Introduction
This chapter includes the background of the study, statement of research problem,
objective of study, the research questions the research hypothesis, significance of the
study, scope of study and the limitation to the study, outline, operationalization and
definition of terms. This chapter appears as first chapter but is written last because it
comprises a course of the study.
Chapter Two: Literature Review
This chapter will include conceptual review, theoretical, empirical review of previous
related scholarly articles of the study and lastly, Gaps in literature.
Chapter Three: Research Methodology

8
This chapter will include comprehensive views of how the research will be conducted,
the research design, strategy, the tools for carrying out the research and further carry out
the research.
Chapter Four:Data Analysis, Interpretation and Presentation.
After data collection, it will be gathered for analysis. This chapter will include analysis of
data gathered, interpretation of data and presentation. It will include the research findings
and generalization of the research.
Chapter five: Summary, consideration and recommendations
Base on the research finding from previous chapters, Summary, Recommendations and
Conclusion will be drawn. This chapter includes the summary of the project,
recommendations base on finding and final conclusions on the research.
1.10 Operationalization
Topic: impact of creativity and innovation on selected small business in Malete.
There are two construct in the above topic:
1. Creativity and Innovation
2. Small and Medium Enterprises
Y=f(X)
Where Y = Dependent Construct (Variable)
Where X = Independent Construct (Variable)

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Where:
X= Creativity and Innovation Y= Performance of SME’S
X1: Service innovation Y1: Profitability
X2: Product innovation Y2: Productivity
X3: Process innovation Y3: Market Share
X4: Market innovation Y4: Service Quality
The Selected Variables are:
X1: Service innovation Y1: Profitability
X2: Product innovation Y2: Productivity
1.11 Definition of Terms
Creativity: Creativity is the act of turning new and imaginary idea into reality.
Innovation: Innovation is the process of translating an idea or invention into a good or
service that create value or for which customers will pay.
Service innovation: Service innovation means changing the way you serve your
customers to create greater value for them and deliver more revenue for your
organization.
10
Product innovation: product innovation is the creation and subsequent introduction of a
good or service that is either new, or an improved version of previous goods or services.
Process innovation: Process innovation is the application or introduction of a new
technology or method for doing something that helps an organization remain competitive
and meet customer demands.
Market innovation: market innovation is the implementation of a new marketing
method involving significant changes in product design or packaging, product placement,
product promotion or pricing.
Profitability: Profitability is the ability of a business to earn a profit.Also profitability is
the ability of a company to use its resources to generate revenues in excess of its
expenses.
Productivity: Productivity is a measure of the efficiency of a person, machine, factory
system, etc in converting inputs into useful output.

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CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter will review of empirical work on creativity and innovation onSMEs.
The chapter commences with definition of key constructs. This will be followed by forms
of creativity and innovation and subsequently the impact of creativity and innovation on
SMEs.
This section reviews relevant aspects of current knowledge, including substantive
findings in relation to the researchable issue of creativity and innovation and SMEs
performance.
2.1 Concept Creativity and Innovation
2.1.1 Creativity
Creativity can be understood as being a multidimensional construct, involving
cognitive variables, personality characteristics, family, educational aspects, and both
social and cultural elements. These dimensions interact with each mother according to
individual thinking and creative styles and are therefore expressed and found in many
different ways (Sternberg, 2010; Wechsler, 2008). Therefore, the creative phenomenon
has been studied under the most different approaches, sometimes emphasizing the
person, or the process or products, the environment, or even the interaction between two
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or more of these variables, thus implying that creativity has multiple ways to be
identified (Alencar&Fleith, 2008; Nakano & Wechsler, 2012).Creativity includes two
dimensions. The first dimension is the novelty notion; it is a phenomenon in everyday
life and therefore anyone can be creative as an essential aspect of contribute to the
business environment and everybody has to be involved in creative processes. The
second dimension is the usefulness notion which refers to material or practical methods
of assessing the usefulness of novel ideas (Shalley, 2013).
Creativity is defined in this study as the creative human attributes and qualities
concerned with imagination, inventiveness, improvisation, insight, intuition, and
curiosity the natural artful‘ genius and talent of people (Lloyd 2007). Barron
&Harrington (2015) proposed two creativity definition categories: “Creativity as socially
recognized achievement in which there are novel products to which one can point as
evidence, such as inventions, theories, buildings, published writings, paintings and
sculptures and films; laws; institutions; medical and surgical treatments, and so on; and
creativity as an ability manifested by performance in critical trials, such as tests, contests,
etcetera, in which one individual can be compared with another on a precisely defined
scale.Anabell& Crooks (2013), opines that creativity involves transforming your
ideas, imagination, and dreams into reality. When you’re being creative, you can
see the hidden patterns, make connections between things that aren’t normally
related, and come up with new ideas. Creative ability depends on creative thinking
which is part hard work but largely creative problem-solving.

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2.1.2 Innovation
The word “innovation” is derived from the Latin verb innovare, which means to
renew. In essence, the word has retained its meaning up until today. Innovation means to
improve or to replace something, for example, a process, a product, or a service Richwell
(2016),. In the context of companies, however, the term needs a definition. In the
complex context of business, a definition is needed.
Richwell (2016), innovation consists of the generation of a new idea and its
implementation into a new product, process or service, leading to the dynamic growth of
the national economy and the increase of employment as well as to a creation of pure
profit for the innovative business enterprise. Innovation is never a one-time phenomenon,
but a long and cumulative process of a great number of organizational decision-making
processes, ranging from the phase of generation of a new idea to its implementation
phase. New idea refers to the perception of a new customer need or a new way to
produce. It is generated in the cumulative process of information-gathering, coupled with
an ever-challenging entrepreneurial vision. Through the implementation process the new
idea is developed and commercialized into a new marketable product or a new process
with attendant cost reduction and increased productivity”
According to Twiss (2013), innovation - a process that combines science,
technology, economics and management, as it is to achieve novelty and extends from the
emergence of the idea to its commercialization in the form of production, exchange,

14
consumption. (Twiss, 2014). According to the interpretation of Molchanov, innovation is
the result of scientific work aimed at improving the social activities and intended for the
implementation of social production (Siauliai, 2013).Afuah (2014), refers to innovation
as new knowledge incorporated in products, processes, and services. He classifies
innovations according to technological, market, and administrative/organizational
characteristics. Tidd, Bessant, Pavitt, and Wiley (2013), defines innovation as a process
of transforming an opportunity into fresh ideas and being widely used in practice. Quite
similar to Bentz (2017),who assumed that innovation is to bring out a new or enhanced
process, service or products for the marketing. Nelson & Joe (2011),suggested innovation
is the “use of new technical and administrative knowledge to offer a new product or
service to customers”. Thus, many authors concluded that innovation is “any practices
that are new to organizations, including equipment’s, products, services, processes,
policies and projects” Khazanchi, Lewis, and Boyer (2011), also extended the conclusion
where they said that innovation is one of major relevance for companies, as it can be the
source of additional revenues from new products or services, can help to save costs or
improve the quality of existing processes.
2.1.4 Dimensions Of Creativity And Innovation
Arold& Jones (2009), illustrates the dimensions of creativity and innovation as to include
the following;
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2.1.3.1 Incremental Innovation
Incremental Innovation is the most common form of innovation. It utilizes your existing
technology and increases value to the customer (features, design changes, etc.) within
your existing market. Almost all companies engage in incremental innovation in one
form or another.
2.1.3.2 Disruptive Innovation
Disruptive innovation, also known as stealth innovation, involves applying new
technology or processes to your company’s current market. It is stealthy in nature since
newer tech will often be inferior to existing market technology. This newer technology
is often more expensive, has fewer features, is harder to use, and is not as aesthetically
pleasing. It is only after a few iterations that the newer tech surpasses the old and
disrupts all existing companies. By then, it might be too late for the established
companies to quickly compete with the newer technology.
2.1.3.3 Architectural Innovation
Architectural innovation is simply taking the lessons, skills and overall technology and
applying them within a different market. This innovation is amazing at increasing new
customers as long as the new market is receptive. Most of the time, the risk involved in
architectural innovation is low due to the reliance and reintroduction of proven
technology. Though most of the time it requires tweaking to match the requirements of
the new market.

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2.1.3.4 Radical innovation
Radical innovation is what we think of mostly when considering innovation. It gives
birth to new industries (or swallows existing ones) and involves creating revolutionary
technology. The airplane, for example, was not the first mode of transportation, but it is
revolutionary as it allowed commercialized air travel to develop and prosper lameez
alexender and daan van knippeng berg (2014)
The four different types of innovation mentioned here – Incremental, Disruptive,
Architectural and Radical – help illustrate the various ways that companies can innovate.
There are more ways to innovate than these four. The important thing is to find the
type(s) that suit your company and turn those into success.
2.1.3.5 Process innovation
process innovation is the implementation of a new or significantly improved production
process, distribution method, or support activity for goods or services. Process
innovations must be new to your enterprise, but they do not need to be new to your
market. The innovation could have been originally developed by your enterprise or by
other enterprises” (CIS 2008).
2.1.3.6Product innovation
product innovation is the market introduction of a new or significantly improved good or
service with respect to its capabilities, user friendliness, components or sub-systems.
Product innovations (new or improved) must be new to your enterprise, but they do not
17
need to be new to your market. Product innovations could have been originally developed
by your enterprise or by other enterprises” (CIS 2008).
2.1.3.7 Marketing innovation
“A marketing innovation is the implementation of a new marketing concept or strategy
that differs significantly from your enterprise’s existing marketing methods and which
has not been used before. It requires significant changes in product design or packaging,
product placement, product promotion or pricing. Exclude Seasonal, regular and other
routine changes” (CIS 2008).
2.1.3.8 Environmental innovation
“An environmental innovation is a new or significantly improved product (goods or
service), process, organizational method or marketing method that creates environmental
benefits compared to alternatives. The environmental benefits can be the primary
objective of the innovation or the result of other innovation objectives. The
environmental benefits of an innovation can occur during the production of a good or
service, or during the after sales use of a good or service by the end user “(CIS 2008).
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2.1.4 Importance of Creativity and Innovation
2.1.4.1 Increase productivity
Creativity allows an entrepreneur to disconnect from the accustomed and move into
uncharted territories with an aim to discern unique and useful solutions. It is, therefore,
become essential for both leaders and employees to develop creative skills. (CIS 2008).
2.1.4.2 High overall success
There is a misconception that people only needs intelligence to achieve everything they
need in life.It could perhaps be because intellectual knowledge is measurable whereas
creativity can be challenging to spot. Nonetheless, dynamics are changing, and
entrepreneurs are beginning to realize the importance of bringing creative people on
board. Creative workers can be a game changer in your company if you harness and
shape their skills adequately. (CIS 2008).
2.1.4.3 High overall success
There is a misconception that people only needs intelligence to achieve everything they
need in life. However, it takes time for aspiring entrepreneurs to realize that creativity
plays an integral role as well.
2.1.5 Concept of Small and Medium Enterprises
SMEs remain an important sub-sector in the nation’s economy. The contribution of
SMEs has been recognized as sustenance of the economy because of their capacity in
enhancing the economy’s output and human welfare (Akingunola, 2011). SME is one of
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the indices of measuring economic development, and as such, the establishment and
proper management of SMEs have a positive effect on the nation’s economic
development. The term SMEs has been described by different authors in different ways.
The Nigeria Bank for Commerce and Industry (as cited in Jimah, 2011) defined a small
scale enterprise as one whose capital does not exceed #750,000. The above definition
plays emphasis on the capital requirement in the formation of the business. Though
capital is not the only consideration in determining whether a business venture is a SMEs
or not. According to Osazee and Anao (as cited in Inegbenebor, 2006). a small scale
business is any business undertaken, owned, managed and controlled by not more than
two entrepreneurs, has no more than twenty employees, has no definite organizational
structure (that is, all employees report to the owners) and has a relatively small share of
its market. In a similar vein, Inegbenebor (2006:11) opined that the current industrial
policy of Nigeria, Small and Medium Scale Enterprises (SMEs) are now defined on the
basis of employment.
2.1.6types of Small and Medium Enterprises (SMES)
According to Asaolu (2005) and Oyelara (2012), some types of small scale business
enterprises are identified. These include:
2.1.6.1 Sole proprietorship
A number of small scale enterprise identified by different scholars, amongst them are:
The sole proprietorship is the simplest business form under which one can operate a
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business. The sole proprietorship is not a legal entity. It simply refers to a person who
owns the business and is personally responsible for its debts. A sole proprietorship can
operate under the name of its owner or it can do business under a fictitious name, such as
Abode’s beauty Salon. The fictitious name is simply a trade name and it does not create a
legal entity separate from the sole proprietor owner. A sole proprietorship is a business
owned, established, and managed by one person. The advantage of a sole proprietorship
is that setting up and administering the business is comparatively easy and inexpensive.
One disadvantage of operating a sole proprietorship form of business is that the liability
of the business is always unlimited. In this case the personal properties of the owner and
the properties of the business is usually the same so when the liability of the business is
to be settled the personal properties of the owner will be used up. A sole proprietorship
business at times lacks continuity when the owner dies Asaolu (2005) and Oyelara (2012.
2.1.6.2 Partnership:
Partnership is defined by section 3(1) of the partnership act as the relation which
subsists between persons carrying on a business in common with a view of profit. The
legal definition of a partnership is generally stated as "an association of two or more
persons to carry on as coowners of a business for profit" (Revised Uniform Partnership
Act 101 [1994]). Partnership can be in two forms which are general partnership and
limited partnership. In a general partnership, the partners manage the company and
assume responsibility for the partnership's debts and other obligations. The limited
partners serve as investors only they have no control over the company and are not
21
subject to the same liabilities as the general partners. Persons can form a partnership by
written or oral agreement, and a partnership agreement often governs the partners'
relations to each other and to the partnership. A type of business organization in which
two or more individual spool money, skills, other resources, and share profit and loss in
accordance with terms of the partnership agreement is called a partnership business. The
disadvantage of a partnership business is that profits must be shared with others; you
have to decide on how you value each other’s time and skills and what happens if one
partner can put in less time due to personal circumstances. Also since decisions are
shared, disagreements can occur. A partnership is for the long term, and expectations and
situations can change, which can lead to dramatic and traumatic split ups. Another major
disadvantage of a partnership is unlimited liability. General partners are liable without
limit for all debts contracted and errors made by the partnership (Oluba, 2009).
2.1.6.3 Cooperative enterprise
A cooperative enterprise is an association or corporation established for the
purpose of providing Services on a nonprofit basis to its shareholders or members who
own and control it. It is established for their mutual benefit and for the sale of their
products at the maximum possible price. It is an autonomous association of persons who
voluntarily cooperate for their mutual, social, economic, and cultural benefit.
Cooperatives include non-profit community organizations and businesses that are owned
and managed by the people who use its services. A co-operative enterprise is an
22
autonomous association of persons who are united voluntarily to meet their common
economic, social, and cultural needs and aspirations through a jointly owned and
democratically controlled enterprise. The formation of a cooperative society is very
simple as compared to the formation of any other form of business organizations. Any
ten adults can join together and form a cooperative society.(Oluba, 2009)..
2.1.7 SMEs Performance
SMEs performance can be seen as an analysis of a company’s performance as
compared to goals and objective(Zeal &Uncho, 2012). Looking at organizations growth
and performance in the telecommunication sector three main outcomes will be analyzed:
financial performance, market performance and shareholder performance. Juxtaposing
sales promotion here it’s clear that the financial and market performance of the
organization is an important sector of a company owing to the fact that sales promotion
demands a lot from the two. There is no universally accepted definition thou, marketing
performance is seen as the extent to which organizations viewed as a social system
fulfilled their objectives. Performance evaluation is focused on work, people and
marketing structure. However, Jill (2011), provides a set of definitions to illustrate the
concept of SMEs performance.
i. Performance is a set of financial and non-financial indicators which offer
information on the degree of achievements of objectives and results.
ii. Performance is dynamic, requiring judgment and interpretation.

23
iii. Performance may be illustrated by using a casual model that describes how
current actions may affect future results.
Performance may be understood differently depending on the person involved in
the assessment of the organizational performance (e.g. performance can be understood
differently from a person within the organization compared to from the outside). To
define the concept of performance is necessary to know its elements characteristics to
each area of responsibility. To report an organization’s performance level, it is necessary
to be able to quantify the results.
2.2 Theoretical Review
2.2.1 Schumpeter’s Innovation Theory
Schumpeter (2004) the pioneer of innovation, highlighted the importance of
innovation to entrepreneurial development. Schumpeter (2004) describes the process of
“creative destruction” this happens when market structures that are existing get disrupted
when new goods are introduced and new services are offered, that transfers available
resources from existing businesses to upcoming ones resulting to wealth creation through
establishments of new firms. Accordingly, Schumpeter calls innovation the specific
instrument of entrepreneurship, the means through which entrepreneurs use change to
create a business opportunity by offering different products and providing different
services. Schumpeter (2010) stressed the role of entrepreneurs as main agents carrying
out creative destruction, and emphasized to the entrepreneurs the need to look with
24
determination for the sources of innovation, and the characteristics that indicate
opportunities for successful innovation as well as applying innovations successfully.
Schumpeterian theory supports the fact that technological development coming
through innovations is propelled by businessmen pursuing profit. That is, each innovation
creates new products and processes that provide the originator with a competitive edge in
the market place over business rivals. It renders previous innovations obsolete and would
be done the same in future by newer innovations .Osaze (2006), view pro-activity as
setting one‟s goals and expectations and arriving at them as designed; a state of mind and
the will, largely motivated by one’s realization, to maintain a vision, to realize a mission,
to achieve a difficult goal and to achieve a definite objective; as envisioning a future on
the way to which one plans the strategic parameters for influencing, impacting and
recreating the surroundings within which to work in line with that vision; a purpose to
excel in one’s own chosen ground; and to follow and achieve one’s own goal largely
defined by self. Entrepreneurial pro-activeness can also be seen as alertness of the
business.
According to Barney (2012) entrepreneurial pro-activeness is the capability of the
business to forecast where goods and services are not available or new ones have become
valuable to consumers and where new procedures of industrialization not known to others
has become viable. A proactive business focuses its future with regards to the present and
the past, using its history to challenge its present and create its own proactive future
25
(Osaze, 2003). Innovation is very important to entrepreneurship as it an element of
economic growth in any country. In the view of Ling, (2008), nations with the largest
economies can be linked with great devotion to innovation and research. Currie, (2008)
found out that in an external situation that is ever changing, innovation and
entrepreneurial conduct are processes that are holistic, energetic and essentially balanced
to business sustainability and success.
2.2.2 McClelland’s Psychological Theory
The theory of high achievement motivation was propounded by McClleland.
Here, he identified two characteristics of entrepreneurship, namely; (1) Doing things in a
new and better way and (2) Making decisions under uncertainty. He stated further that
people with high achievement motivation were likely to become entrepreneurs. That
these people are not influenced by money or external incentive, but consider profit
making in any venture as a measure of success or competency. Achievement motivation
can be measured by the achievement motivation inventory which is a drive that is
developed from emotional state. One may feel to achieve by get striving for success and
avoiding failure. Another theory developed by McClleland was the theory of Acquired
Needs motivation. He categorized a person’s needs into three; (1) Need for
Achievement- success with individuals own effort (2) Need for Power- need to dominate
and influence others, and, (3) Need for Affiliation -to maintain friendly relations with
others. McClleland concluded by stating that the need for achievement is essential for
26
successful new entrepreneurship. McClleland also carried out an experiment which is
popularly known as Kakinada studies. The study was conducted in an industrial town in
Andhira Pradesh between January and March 1964. In that study, young adults were
selected and put through three months training program at Small Industry Extension
Training Institute (SIETI). The program was designed to induce achievement motivation
in them.
The program subjected the trainees to control their thinking and talk to
themselves positively, imagined themselves in need for challenge to succeed, set
planned and achievable goals, strive to get concrete and frequent feedback and imitate
their role model. The experiment revealed the following results (1) that traditional belief
do not inhibit an entrepreneur or destroy entrepreneurial orientation (2) that sustainable
training can supply the required motivation to an entrepreneur (3) that achievement
motivation has a positive impact on performance of participants. The general
conclusion was that it was the Kakinada studies that made people realize the importance
of EDP-Entrepreneurial Development Program. Other writers have defined
entrepreneurship as the ability to exploit creative innovations, create and sell new ideas
or build new businesses (Wood, et al, 2009). Schumpeter (2005) also opined that
entrepreneurship is about combining resources in new ways, such as introducing new
products, new methods of production, discovery of new market, identify new sources of
raw materials/inputs and setting a new standard in the market or industry that alters the
market equilibrium in the economic systems.

27
Drucker (2005) holds innovation, resources and an entrepreneurial behavior as
key to entrepreneurship. According to him, entrepreneurship involves increase in value
or satisfaction to the customer from the resources, creation of new values, and
combining existing material and resources in a new and productive way. Esbach (2009)
claims that despite the huge interest in the subject of entrepreneurship since its
inception, no single definition of entrepreneurship has been found acceptable to all.
However, this is typical or common in the field of the social sciences. In addition, there
are a number of shortcomings in the application of these theories to situations in
developing countries. It should be noted that these theories emphasize innovation, but
ignores risk- taking and organizing ability of an entrepreneur. However, Schumpeter’s
entrepreneurs, essentially, are large scale business men which are rarely found in
developing economies.
2.2.3 Sociological Theories of Entrepreneurship
Entrepreneurial ventures are clearly social entities from the very beginning,
because even solo ventures implicitly involve a choice not to share ownership with others
in the founding process. How a venture begins and whether others are recruited to join
the effort can have lasting consequences for its performance and survival. Enterprises can
be formed as a result of teams. Three principles underlying team formation may be
distinguished: choice on the basis of homophily, purposive choice, and choice
constrained by context or opportunity structure (Ruef 2005). Homophily refers to the

28
tendency of people to associate with others similar to themselves, such as choosing others
on the basis of gender or ethnicity. Purposive choice reflects people’s tendencies to
choose others who possess valuable skills, such as education or experience. Finally,
opportunity structures set a context within which the first two principles operate.
Founders cannot choose someone whom they have not met or have no way to reach, such
as a person who works in another organization or lives in another city (Ruef. 2005).
Entrepreneurship has a psychological contract involving a give and take
transactionionary‟ relationship in form of teamwork involving two or more individuals
who jointly establish a business in which they have an equity (financial) interest. These
individuals are present during the pre-start-up phase of the firm, before it actually begins
making its goods or services available to the market.” By this definition, a person must
be involved from the beginning and also must have an equity stake in the venture to be
considered a member of the team. Much of the literature is based on the assumption that
teams are a deliberate choice of a lead entrepreneur or set of founders (Kamm et al. 2006:
). Bird (2009) postulate that there are psychological benefits derived from relationships
between team members Unlike a solo entrepreneur, who must bear the burden of making
decisions and facing their consequences with no one else to blame, entrepreneurial teams
spread the responsibility across individuals. Having to defend decisions to other
individuals also having an equity stake in the venture can make team members more
confident in their decisions. Francis and Sandberg (2006) noted that friendships “may
hold teams together and stimulate heroic efforts during difficult times.” The Biological
29
perspective of entrepreneurship involves a psychological satisfaction and differences in
behaviors in their exhibited by different gender in their endeavors as entrepreneurs.
2.3 Empirical Review
Oluyemi & Akeem, 2016 carried out a study to examines the effect of
entrepreneurial innovation on the performance of small and medium scale enterprises
using Yaba Local Government Area (L.G.A) of Lagos state as the case study. The
research design selected for this study was the survey design and data were collected
through questionnaire administered on 92 entrepreneurs in various activities. The data
collected were analyzed through the use of descriptive statistics with the aid of SPSS.
The formulated hypotheses were tested through the use of simple regression. Results
revealed that entrepreneurial characteristics, entrepreneurial competency and orientation
and the level of education of an entrepreneur all have a significant effect on the
performance of small and medium scale business in Nigeria. It was recommended that
entrepreneurs must be exposed to various sources of information, educational and
specialized training programmes in entrepreneurship to expose potential and existing
entrepreneurs to risk-taking strategies inherent in self-employment and wealth creation.
In a study carried out by (Roselyn, Patrick, Anthony, & Victor, 2016) were they
find out that Small and medium enterprises are a vital economic base for any economy as
they have the ability to create employment. A family enterprise is an enterprise that is
influenced by two or more family members through their participation, ownership,
strategic preference or culture. Most business enterprises start as family enterprises. This
30
article focuses on the effect of entrepreneurial skills on the sustainability of Small and
Medium Family Enterprises. The role of the principal confidant is also examined in this
article. Specifically, the article aims at establishing the effect of entrepreneurial skills on
the sustainability of Small and Medium Family Enterprises after the exit of the founders,
among other objectives. The article reviews relevant literature on the subject of
entrepreneurship and makes conclusion based on the results of the study that
entrepreneurial skills have a great positive influence, on sustainability of Small and
Medium Family Enterprises. The study, however, recognizes that other factors such as
managerial skills, succession planning individual behaviors and human resource
management skills also play a significant role in the sustainability of Small and Medium
Family Enterprises after the exit of the founders.
In a study conducted by (Maalu, Gathungu, Wainaina, & Wekesa, 2016) in Kenya
founds out that limited literature is available on the relationship between entrepreneur
characteristics and performance of non-timber forest products small and medium
enterprises raising debate whether the link is tenable with such firms. Thus, a study
covering 314 small and medium enterprises in nine counties in Kenya was conducted to
explore the relationship. The coefficient of determination, F statistic, and the t-value and
their significance levels were used in presenting the relationship between entrepreneur
characteristics and firm performance. The results show that that firm performance is
significantly affected by entrepreneur characteristics of age, managerial skills, industry
experience and social skills. Thus, it is concluded that entrepreneur characteristics and
31
performance of non-timber forest products small and medium enterprises are empirically
related. Firms run by relatively young, well-experienced and skilled entrepreneurs
register better performance. It is necessary, therefore, that the non-timber forest products
small and medium enterprises match their strategic decisions with characteristics of
owners/managers to enhance their competitiveness and performance. The implications of
this study are that specific policy measures are necessary to encourage the many well
trained but unemployed young people to engage in businesses. Additionally, it also
implies that specific training programmes are necessary to equip the practitioners with
necessary theoretical and practical capacities to enhance performance of their firms.
Jurnal (2017), conducted a research on the effect of market orientation, creativity,
innovation and competitive advantage on the performance of creative industries.
Respondents from this study are 130 owners or leaders of creative industries in the
fashion sector in Central Java Indonesia. The study is located on the North Coast of
Central Java, taking five districts, namely Pekalongan, Semarang, Kudus, Rembang and
Jepara. Sampling method in this research use purposive sampling method. This method is
used taking into account the criteria of the creative fashion industry that has been
operating for at least 3 years and innovating market-oriented products. The data obtained
will be analyzed using Partial Least Square (PLS) program. The results of data analysis
show that creativity has no significant effect on innovation. Market orientation
significantly affects innovation and performance. Innovation also has a significant effect
32
on excellence and competitive performance. Furthermore, competitive advantage has a
significant effect on company performance.
Tariq , Zaroug, Mohamed, & Siddig, (2019) conducted a study which aims is to
identify the level of availability of entrepreneurial characteristics among undergraduate
students in some universities of Sudan and Oman, and test whether these characteristics
have a significant impact on the entrepreneurial intention of these students. The study
also intends to make comparison between the attitudes of students in Sudan and Oman
towards establishing their businesses (self-employment). The sample of the study (n =
574) consists of students from University of Bahri, Sudan International University, and
Dhofar University. In order to achieve these objectives, the study adopted the descriptive
and analytical approach and used the questionnaire as a tool for collecting primary. The
findings reveal that, there is a statistically significant impact of the entrepreneurial
characteristics among undergraduate students (need for achievement, self-efficacy and
locus of control) on their entrepreneurial intention. The study also found that there are
statistically significant differences in the views of the respondents according their
universities, concerning the locus of control and entrepreneurial intention. The analysis
showed that locus of control among students of Dhofar University and Sudan
International University was higher than that of University of Bahri students.
Furthermore, it was found that the entrepreneurial intention among students of Dhofar
University was higher than that of Sudan International University & University of Bahri
students.
33
2.4 Gaps in Literature
This research work impact of creativity and innovation on SMEs tends to cover the gap
of lack of creativity and innovation on performance of SMEs. This research work will be
useful and will also help to bridge the gap between creativity and innovation SMEs, since
it has been identified that lack of product innovation, services innovation and marketing
innovation adoption leads to the failure of SMEs profitability, productivity, market share
and service quality.
The gap in this literature is in the methodology adopted. As It was based on review of
existing journals. It may appear that people have written little or much on this above
topic, but the fact remain that some aspects of creativity and innovation on business
performance is yet to covered such length. Usually, most study often generalizes the
impact of creativity and innovation and how it leads to increased business performance.
34
CHAPTER THREE
METHODOLOGY
3.11 Introduction
This chapter will discuss the methodological approaches that will be used in this
research work. The chapter covered the research methods, research design, and the study
population, source of data and procedure for data collection, design of instrument, the
validity and reliability of the instrument, data analysis method, and ethical
consideration.
3.2 Research Design
Research design is a plan, structure and strategy for investigation. It is put in
place so as to obtain answers to research questions or problems. Identification and
development of procedure, quality, validity, objectivity and accuracy was ensured. The
variable that will be use in these research will not all discuss is only four variables will be
discussed, while the remaining four will be chanced or extraneous variable because they
are not talked about.
3.3 Research Methods
Research method is the method to be taken when researching any topic there are
two basic method, these are qualitative method and quantitative method. Quantitative
method refers to the systematic empirical investigation of social phenomena via
statistical, mathematical, numerical data or comparative techniques (Lisa, 2008). While

35
qualitative method according to (Creswell, 2007) is a process of enquiry that reports
detailed views of information with word, and conducted in naturally setting to build a
complex picture for understanding a social or human problem.
There are many types of research methods where in none of the methods is
superior to each other, depending on what is suitable for the study. They therefore
include survey, case study, action research, grounded research, archival research,
ethnography, ipso facto, and experiment (Otokiti, 2011). The nature of this research
necessitates the use of the survey method, which was used in collecting data.
3.4 Population of Study
The population is the totality of the objects or element being studied and to which
conclusions and generalization of our results were applied. Asika (2006) describes
population to be made up of “all conceivable elements, subject or observations relating to
a particular phenomenon of interest to the researcher” for the purpose of this study; the
population of interest consists of selected market within Ilorin metropolis.
The population of interest consists of selected business enterprises in Malete, the
business organizations includes Arena Restaurants, Mr Ben Provision Store, Day By
Day, kraft, and 8h kitchen. The total numbers of population of all the selected business
are 56 in number.
36
3.5 Sample size
This research will be using a population sample size of 56 which have been
tested using the Taro Yamane formula.
3.6 Sampling Technique
Sampling technique refers to a process that involves different way of choosing
sample (Barreiro, 2001). A sample on the other hand deals with a representation of the
population or universe under study (Bartlett 2001). Sampling refers to a process of
collecting information from a sample.
Sampling techniques can be probability sampling techniques or non-probability
sampling techniques. Probability sampling techniques include simple random sampling,
systematic sampling, stratified sampling, cluster/area sampling while non-probability
sampling techniques include convenience sampling, judgmental sampling non-random
and quota sampling techniques. This research will adopted the non-random sampling
technique using quota sampling methods which aid the ability to cover the specified area
of research.
3.7 Methods of Data Collection
There are two main sources of data collection, these are: primary and secondary
data. And as for this research, the researcher will use both sources of data to generate
37
information. Primary Sources will be obtained mainly with the research instruments
(questionnaire and survey methods) first-hand accounts of an event, a life, a moment in
time.
3.8 Method of Data Analysis
The data will be analyzed with the use of both descriptive and inferential
statistical method. Descriptive statistics analysis will be used to present demographic data
and inferential statistical technique that will be used to evaluate the effects and
relationship between the variables. Regression analysis was used to analyze the
relationships between two or more variables with dependent variable (multiple
regressions), in this case, the impact of Small and medium scale Business Enterprise 0n
economic development
3.9 Research Instrument
Research instruments are those tools which are being used to collect data for the
purpose of testing hypothesis and answering research questions (Ojo, 2005). These are
practically the methods of acquiring information from the field about the subject of
interest from the different available sources.
Questionnaires will be designed in two parts, A and B. part A contains the
personal information of the respondents including their nationality, state of origin, local
government, age, marital status, educational qualification. Part B on the other hand
38
contain a set of questions items personally structured by the researcher, strictly
addressing the variables to elicit information on the research topic.
3.10 Validity of Research Instrument
Validity refers to the ability of a scale to measure what it is designed to measure.
The validity of measurement was established through content validity which will be
given to other researchers to ascertain whether the questionnaire item adequately cover
the domain of the construct. The research instrument will also certified by researcher’s
supervisor. However, face validity will censured by interaction with the qualified staffs
and some untrained personnel.
3.11 Reliability of Research Instrument
Reliability refers to the consistency or dependability of a measurement technique
and it is concerned with the consistency or stability of the score obtained from a measure
or assessment over time and across settings or conditions (Leary, 2004). In order to
ensure the reliability of the data to be collected, the researcher will ensured that the
variable for each construct is comprehensively incorporated in the questionnaire. Also,
the researcher is available by going to the correspondents to get the exact information
from them to carry out their research work.
3.12 Ethical Consideration

39
In conducting this research the issue of ethic was highly followed.
Confidentiality was maintained throughout the research and data obtained for the purpose
of this study will used only for the purpose of this study. Furthermore, high moral and
ethical values were ensured; thus ensuring protection of the right of individuals in
particular and that of the organization under study as whole. The enrolment of
respondents was done on a voluntary basis; thus, this ensures respondents were not
pressurized and their privacy is not to be intruded upon.

40
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS, INTERPRETATION AND DISCUSSION
OF FINDINGS
4.1 Introduction
The purpose of this chapter was to analyze the data collected through the use of
questionnaires, with the view of finding answer to the research questions raised in the
research proposal. This chapter also serves as the core of this research, based on the fact
that the data collected will provide answers to the stated hypotheses and research
questions.
4.2 Presentation Of Data
The administration of the questionnaire was a different task to undertake. There was no
quick response to the questionnaire as expected. It took a long time before the
questionnaire were filled and returned. According to the population size computed in the
chapter three of this project, a total number of fifty six (56) copies of the questionnaire
were administered to the respondents, all copies were properly filled and returned, while
the information given by the respondents were quantified numerically and converted into
percentages.
4.3 Data Analysis and Interpretation
The questionnaire was divided into two parts;
 Part A: This contain respondents Demographic data

41
 Part B: This form the focus of respondent’s assessment for evaluation.
4.3.1 Presentation of Data

SELECTED BUSINESSES Number distributed Number returned
Arena Restaurant 15 15
Day by Day Provision store 10 10
Mr Ben Provision store 11 10
Kraft 10 10
8h 10 10
Total 56 56
Table 4.2 showing Source: Researchers Field Survey 2021.
4.3.1 ANALYSIS OF DEMOGRAPHIC DATA
TABLE 4.1 SEX DISTRIBUTION
Frequency Percent Valid Percent Cumulative Percent

Valid Male 13 23.2 23.2 23.2
Female 43 76.8 76.8 100.0
Total 56 100.0 100.0
Source: Researcher’s Field Work 2021

Table 4.3.1.1 shows that there are 13 male respondents which translated to 23.2% and 43
female respondents representing 76.8%. These indicate that female staffs dominate
selected businesses in Malete.
42
TABLE 4.2 AGE DISTRIBUTION

Cumulative
Frequency Percent Valid Percent Percent
Valid 18-25 24 42.9 42.9 42.9
26-35 20 35.7 35.7 78.6
36-45 10 17.9 17.9 96.5
46 AND
2 3.6 3.6 100.0
ABOVE
Total 56 100.0 100.0
Table 4.3.1.2 shows that the number of respondents who are within the age bracket of 18-
25 years constituted 42.9%, those within the age bracket of 26-35 are 35.7%, ages 36-45
amounted to 17.9%, 46 above amounted to 3.6%. From the above analysis, it shows that
majority of the respondents are between 18-25.
TABLE 4.3 MARITAL STATUS

Valid Single 30 53.6 53.6 53.6
Married 20 35.7 35.7 89.3
Divorced 2 3.6 3.6 92.9
Widow/widower 4 7.1 7.1 100.0
Total 56 100.0 100.0
Table 4.3.1.3 shows that 53.6% of the sample respondents are single, 35.7% are
married, and 3.6% are divorced while 7.1% are widow.
43
TABLE 4.4 WORKING EXPERIENCE

Percen
Frequency t Valid Percent Cumulative Percent
Vali 0-5 40 71.4 71.4 71.4
d 6-10 10 17.9 17.9 89.3
11-15 6 10.7 10.7 100.00
16-20 0 0 0
21 and Above 0 0 0
Total 56 100.0 100.0
In the table 4.3.1.4 above, the number of respondents who worked under 0-5 years
constituted 71.4%, those within the range of 6-10 years constituted 17.9%, 11-15
constitute 10.7%, 16-20 constitute 0%while 21 and above years constituted 0%. The
highest percentage was recorded within the person that worked under 0 – 5 years.
TABLE 4.5 QUALITIFICATION

Valid SSCE 4 7.1 7.1 7.1
OND 17 30.4 30.4 37.5
HND/BSC 23 41.1 41.1 78.6
MSC 4 7.1 7.1 85.7
Others 8 14.3 14.3 100.0
Total 56 100.0 100.0
Table 4.3.1.5 shows that 7.1% of the sample respondents are SSCE Holder, 30.4% are
ND Holder, 41.1% are HND/BSC Holder, Holder 7.1% are MBA/MSC Holder, while
14.3% are Other.
4.3.2 TEST OF QUESTIONNAIRE

44
4.3.2.1 SERVICE INNOVATION
TABLE 4.6 The success of the business is built on service innovation

Valid Strongly Agree 20 35.7 35.7 35.7
Agree 13 23.2 23.2 58.9
Undecided 7 12.5 12.5 71.4
Disagree 11 19.6 19.6 91.0
Strongly
5 9.0 9.0 100.0
Disagree
Total 56 100.0 100.0
TABLE 4.6 shows that 35.7% strongly agreed and 23.2% agreed the success of the
businesses are built on service innovation. 12.5% were unable to decide while 19.6%
disagree and 9.0% strongly disagreed that the success of this organization is built on
service innovation.
TABLE 4.7 The business services innovation has direct link to the business growth.
Agree 17 30.3 30.3 74.9
Undecided 8 14.3 14.3 89.2
Disagree 3 5.4 5.4 94.6
Strongly
3 5.4 5.4 100.0
Disagree
Total 56 100.0 100.0
TABLE 4.7 shows that 44.6% strongly agreed and 30.3% agreed that the businesses as
well developed established ways of service innovation implementation. 14.3% were
45
unable to decide while 5.4% disagree and 5.4% strongly disagreed that the businesses as
well developed established ways of service innovation implementation.
TABLE 4.8 Goodwill of business has improved as a result of good services

innovation of the business.
Agree 13 23.2 23.2 58.9
Undecided 8 14.3 14.3 73.2
Disagree 7 12.5 12.5 85.7
Strongly
8 14.3 14.3 100.0
Disagree
Total 56 100.0 100.0
TABLE 4.8 shows that 35.7% strongly agreed and 23.2% agreed that goodwill of
businesses have improved as a result of good service innovation. 14.3% were unable to
decide while 12.5% disagree and 14.3% strongly disagreed that goodwill of businesses
have improved as a result of good service innovation.
4.3.2.2 PRODUCT INNOVATION

TABLE 4.9 The quality of our products has made the products more
acceptable in the market
Agree 16 28.5 28.5 78.5
Undecided 7 12.5 12.5 91.0
Disagree 4 7.2 7.2 98.2
Strongly
1 1.8 1.8 100.0
Disagree
Total 56 100.0 100.0
46
TABLE 4.9 shows that 50.0% strongly agreed and 28.5% agreed that the quality of our
products has made the products more acceptable in the market, 12.5% were unable to
decide while 7.2% disagree and 1.8% strongly disagreed that the quality of our
products has made the products more acceptable in the market.
TABLE 4.10 Product innovation as been the key success to the business
productivity
Agree 13 23.2 23.2 60.7
Undecided 12 21.4 21.4 82.1
Disagree 6 10.7 10.7 92.8
Strongly
4 7.1 7.1 100.0
Disagree
Total 56 100.0 100.0
TABLE 4.10 shows that 37.5% strongly agreed and 23.2% agreed that product
innovation as been the key success to the organization productivity. 21.4% were unable
to decide while 10.7% disagree and 7.1% strongly disagreed that product innovation as
been the key success to the organization productivity.
TABLE 4.11 The business focus on customer feedback when innovating on product
Agree 21 37.5 37.5 66.1
Undecided 5 8.9 8.9 75.0
Disagree 6 10.7 10.7 85.7
47
Strongly
8 14.3 14.3 100.0
Disagree
Total 56 100.0 100.0
TABLE 4.11 shows that 28.6% strongly agreed and 37.5% agreed that the businesses
focus on customer feedback when innovating on product. 8.9% were unable to decide
while 10.7% disagree and 14.3% strongly disagreed that the businesses focus on
customer feedback when innovating on product.
4.3.2.3 Process Innovation

TABLE 4.12 Technology enhance and improve the efficiency of the business
Agree 13 23.2 23.2 73.2
Undecided 8 14.2 14.2 87.4
Disagree 4 7.2 7.2 94.6
Strongly
3 5.4 5.4 100.0
disagree
Total 56 100.0 100.0
TABLE 4.12 shows that 50.0% strongly agreed and 23.2% agreed that technology
enhance and improve the efficiency of the organization. 14.2% were unable to decide
48
while 7.2% disagree and 5.4% strongly disagreed that technology enhance and improve
the efficiency of the organization.
TABLE 4.13 The performance of the business is on new technology only

Agree 13 23.2 23.2 35.7
Undecided 21 37.5 37.5 73.2
Disagree 11 19.6 19.6 92.8
Strongly
4 7.1 7.1 100.0
Disagree
Total 56 100.0 100.0
TABLE 4.13 shows that 12.5% strongly agreed and 23.2% agreed that the performances
of the businesses are on new technology only. 37.5% were unable to decide while 19.6%
disagree and 7.1% strongly disagreed that the performances of the businesses are on new
technology only.
TABLE 4.14 Technology has helped to enhance novelty in this business

Agree 13 23.2 23.2 35.7
Undecided 21 37.5 37.5 73.2
Disagree 4 7.1 7.1 80.3
Strongly
11 19.6 19.6 100.0
Disagree
Total 56 100.0 100.0

49
TABLE 4.14 shows that 12.5% strongly agreed and 23.2% agreed that technology has
helped to enhance novelty in this business. 37.5% were unable to decide while 7.1%
disagree and 19.6% strongly disagreed that technology has helped to enhance novelty in
these businesses.
4.3.2.4 Market Innovation

TABLE 4.15 The business ensure actualization of customer need by introducing
new thing
Agree 15 26.8 26.8 48.2
Undecided 15 26.8 26.8 75.0
Disagree 7 12.5 12.5 87.5
Strongly
7 12.5 12.5 100.0
Disagree
Total 56 100.0 100.0
ensure actualization of customer need by introducing new thing. 26.8% were unable to
decide while 12.5% disagree and 12.5% strongly disagreed that the businesses ensure
actualization of customer need by introducing new thing.
50
TABLE 4.16 Assessment of market demand improve the productivity of this

business
Agree 13 23.2 23.2 58.9
Undecided 11 19.6 19.6 78.5
Disagree 9 16.1 16.1 94.6
Strongly
3 5.4 5.4 100.0
Disagree
Total 56 100.0 100.0
TABLE 4.16 shows that 35.7% strongly agreed and 23.2% agreed that assessment of
market demand improve the productivity of these businesses. 19.6% were unable to
decide while 16.1% disagree and 5.4% strongly disagreed that assessment of market
demand improves the productivity of these businesses.
51
TABLE 4.17 All novel ideas generated in this business are implemented on
market actualization
Agree 15 26.8 26.8 58.9
Undecided 2 3.6 3.6 62.5
Disagree 12 21.4 21.4 83.9
Strongly
9 16.1 16.1 100.0
Disagree
Total 56 100.0 100.0
TABLE 4.17 shows that 32.1% strongly agreed and 26.8% agreed that all novel ideas
generated in these businesses are implemented on market actualization. 3.6% were unable
to decide while 21.4% disagree and 16.1% strongly disagreed that all novel ideas
generated in these businesses are implemented on market actualization.
4.3.2.5 PROFITABILITY
TABLE 4.18 Profit making aid the goal of the business to be achieved.
Agree 9 16.1 16.1 57.1
Undecided 8 14.3 14.3 71.4
Disagree 7 12.5 12.5 83.9
Strongly
9 16.1 16.1 100.0
Disagree
Total 56 100.0 100.0
52
focus on profit making only. 14.3% were unable to decide while 12.5% disagree and
12.4% strong 16.1% disagreed that the businesses focus on profit making only.
TABLE 4.19 Profit helps the organization to meet up with the goal s and objective.
Agree 14 25.0 25.0 57.1
Undecided 8 14.3 14.3 71.4
Disagree 8 14.3 14.3 85.7
Strongly
8 14.3 14.3 100.0
Disagree
Total 56 100.0 100.0
TABLE 4.19 shows that 32.1% strongly agreed and 25.0% agreed that profit making aid
the goal of their businesses. 14.3% were unable to decide while 14.3% disagree and
14.3% strongly disagreed that profit making aid the goal of these businesses.
TABLE 4.20 Services innovation has positive relationship with profitability of an

business
Agree 12 21.4 21.4 62.4
Undecided 9 16.1 16.1 78.5
Disagree 9 16.1 16.1 94.6
Strongly
3 5.4 5.4 100.0
Disagree
Total 56 100.0 100.0
53
TABLE 4.20 shows that 41.0% strongly agreed and 21.4% agreed that the employee
meet up with the goal of their businesses. 16.1% were unable to decide while 16.1%
disagree and 5.4% strongly disagreed that the employees meet up with the goal of their
businesses.
4.3.2.6 Productivity
TABLE 4.21 Orientation and training of Employees in a business increases the
business productivity
Agree 15 26.8 26.8 57.2
Undecided 11 19.6 19.6 76.8
Disagree 8 14.3 14.3 91.1
Strongly
5 8.9 8.9 100.0
Disagree
Total 56 100.0 100.0
TABLE 4.21 shows that 30.4% strongly agreed and 26.8% agreed that employees are
trained in this enterprise and this increase their productivity. 19.6% were unable to decide
while 14.3% disagree and 8.9% strongly disagreed that employees are trained in this
enterprise and this increase their productivity.
54
TABLE 4.22 Customer satisfaction increases the productivity of this business

Agree 16 28.6 28.6 51.8
Undecided 7 12.5 12.5 64.3
Disagree 9 16.1 16.1 80.4
Strongly
11 19.6 19.6 100.0
Disagree
Total 56 100.0 100.0
TABLE 4.22 shows that 23.2% strongly agreed and 28.6% agreed that customer
satisfaction increases the productivity of their businesses. 12.5% were unable to decide
while 16.1% disagree and 19.6% strongly disagreed that customer satisfaction increases
the productivity of their businesses.
TABLE 4.23 Employees interaction increase organization productivity

Agree 12 21.4 21.4 60.7
Undecided 1 1.8 1.8 62.5
Disagree 11 19.6 19.6 82.1
Strongly
10 17.9 17.9 100.0
Disagree
Total 56 100.0 100.0
TABLE 4.23 shows that 39.3% strongly agreed and 21.4% agreed that employee’s
interaction in this enterprise increase their productivity. 1.8% were unable to decide
55
while 19.6% disagree and 17.9% strongly disagreed that the business implement
contractual agreement to increases the business trust.
4.4 TEST OF HYPOTHESES
Re-statement of hypotheses
 There is no significant relationship between service innovation and

profitability.
 There is no positive relationship between product innovation and
profitability.
 There is no positive relationship between process innovation and
productivity.
 There is no significant relationship between market innovation and
productivity.
4.4.1 HYPOTHESIS 1: There is no significant relationship between service

innovation and profitability.
Correlations
SERVICE
INNOVATION PROFITABILITY
SERVICE Pearson
1 .983**
INNOVATION Correlation
Sig. (2-tailed) .000
N 56 56
PROFITABILIT Pearson
.983** 1
Y Correlation
N 56 56
**. Correlation is significant at the 0.01 level (2-tailed).
56
The table shows the Pearson correlation for service innovation and profitability to be
0.983 (98.3%) This implies that there is a weak relationship between service innovation
and profitability. The above correlation table shows that at a 0.01 level of significance, r
= 0.0001 (2-tailed test). 0.0001 is less than 0.01 which is the set level of significance.
This implies that there is significant relationship between service innovation and
profitability. Therefore we reject the null hypotheses and embrace the alternate.
4.4.2 HYPOTHESIS 2: There is no positive relationship between product

innovation and profitability
Correlations
PRODUCT
INNOVATION PROFITABILITY
PRODUCT Pearson
1 .976**
N 56 56
PROFITABILITY Pearson
.976** 1
Correlation
N 56 56
The table shows the Pearson correlation for product innovation and profitability to be
0.976 (97.6%) This implies that there is a weak relationship between product innovation
57
This implies that there is significant relationship between product innovation and
4.4.3 HYPOTHESIS 3: There is no positive relationship between process

innovation and productivity.
Correlations
PROCESS
INNOVATION PRODUCTIVITY
PROCESS Pearson
1 .987**
N 56 56
PRODUCTIVITY Pearson
.987** 1
Correlation
N 56 56
The table shows the Pearson correlation for process innovation and profitability to be
0.987 (98.7%) This implies that there is a weak relationship between process innovation
This implies that there is significant relationship between process innovation and
58
4.4.4 HYPOTHESIS 4: There is no significant relationship between market

innovation and productivity.
Correlations
MARKET
INNOVATION PRODUCTIVITY
MARKET Pearson
1 .949**
N 56 56
PRODUCTIVITY Pearson
.949** 1
Correlation
N 56 56
The table shows the Pearson correlation for market innovation and profitability to be
0.949 (94.9%) This implies that there is a weak relationship between market innovation
This implies that there is significant relationship between market innovation and
4.5 Discussion of Results

This study examines the Impact of Creativity and Innovation on Selected Small Business
in Malete, and the variables used for the independent variable are service innovation,
product innovation, process innovation and market innovation while for the dependent
constructs, profitability and productivity was used. Four hypotheses were postulated for
59
the research work and the results derived show that creativity and innovation has
significant impact on selected small business in Malete.

60
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 INTRODUCTION
This chapter of this research work gives an overview or summary of the whole
research work from the first chapter to the last chapter. This chapter also examines the
theoretical and empirical findings as discovered by the researcher, the conclusion of the
research work and recommendations by the researcher.
The purpose of this study is to examine the Impact of Creativity and Innovation
on Selected Small Business in Malete. Four hypotheses were put forward in the course of
the research which was tested using correlation analysis.
5.2 Summary of the Work
This research work started with the chapter one with the introductory part
discussing the background of the study. This was followed by a clear definition of the
statement of research problem that the researcher has observed. Objectives were drawn
out to address the overriding objective- to examine the Impact of creativity and
innovation on organization performance. The research objectives form the basis for the
research questions and hypotheses. This was done through the Operationalization of the
two construct (creativity and innovation and organizational performance)
Under creativity and innovation variables are service innovation, product
innovation, process innovation and market innovation while for organizational
performance variables are, profitability and productivity.

61
The aforementioned variables were emphasized in the literature review section to
provide a clearer understanding as regards the measurability and relations to their
respective constructs. The works of scholars were reviewed to provide more depth to the
understanding of the chosen topic. The literature review section examined conceptual
frameworks of the constructs and their variables; theoretical framework and empirical
framework as well as the gap in literature.
5.3 Findings
The findings for this study are divided into two parts namely: theoretical findings
and empirical findings. The theoretical findings are abstracted from the literature review
in chapter two while the empirical findings are derived from data generated from the field
by the researcher.
5.3.1 Theoretical Findings
Theoretical findings show that to sustain organization performance, there is need for
joint venture agreement.
1. Amabile (1999), by analyzing creativity in her studies with a number of companies,
including Procter & Gamble, refers to three components of creativity: expertise
(technical, intellectual and procedural knowledge), motivation (inner passion -
intrinsic motivation) and creative thinking (flexibility and imagination). In her studies
on creativity in organizations, this author proposes a conceptual model to evaluate the
work environment for creativity, the Work Environment Inventory - WEI. In this
model, she says that there are six management practices that stimulate creativity:
62
organizational encouragement, encouragement from supervision, encouragement
from the working group, freedom, sufficient resources and challenges in the
workplace. On the other hand, according to the author, two practices inhibit
creativity: the pressure of workload and the organizational obstacles or difficulties.
The encouragement to the generation of new ideas should happen at all levels of the
organization with the appreciation of the managements, generating a collaborative
flow and participative management that facilitate decision-making. Creativity should
no longer be an exclusivity of this or that department, but there should be an
interaction between supervisors and subordinates from different working groups.
Working groups consisting of different people become rich in contributions for new
projects. (AMABILE, 1996, 1999).
2. Strauch (2009) conducted a study on incentives for creativity based on the studies of
authors who research on the subject including Kao, Alencar, Csikszentmihalyi,
Amabile, Sternberg and Lubart. The author organized what she called strategies to
stimulate creativity in six dimensions: Physical environment (resources), Employee,
Rewards, Organizational environment, management support and organizational
structure. In her conclusions about creativity in companies in Rio Grande do Sul -
Brazil, she says that the companies studied make use of strategies to stimulate
creativity in different ways, varying in degree of use according to the company.
Based on the results, we found various possibilities for organizations to be creative

63
and be able to compete, without a following a prior recipe but a suggestion for
adaptation to each case.
The studies found so far show that creativity is a complex and multidimensional
subject, having several classifications and systems proposed for its application, study
and management in organizations. Among some of the most cited in the literature we
mention the article of Rhodes (1961), who proposed the 4 Ps of creativity,
considering creative people, the processes they use, the product or result of their
efforts, and the context in which they are inserted. Amabile (1996) proposes an
instrument to assess workplace conducive to creativity and Faria and Alencar (1998)
propose a instrument to measure the perception of stimuli and barriers to creativity in
the workplace.
5.5.2 Empirical Findings
1. Most Staffs of Selected Small Business in Malete are female establishment as the
frequency distribution from the research conducted shows that 23.2% are male and
76.8% are female. In addition to this, most Staffs of Selected Small Business in
Malete are either single or married. Few of them are either divorced or widow.
2. The Staffs of Selected Small Business in Malete age distribution are within 18-25,
26-35, 36-45 and 46 and above which constitute 18-25(42.9%), 26-35(35.7%), 36-
45(17.9%) and 46 and above(3.6%).
3. The study found out that creativity and innovation has significant effect on
organizational performance of Selected Small Business in Malete. Drawing from the

64
sample used for the study, Selected Small Business in Malete implements creativity
and innovation to increase the organizational performance of Selected Small Business
in Malete. Creativity and innovation Includes service innovation, product innovation,
process innovation and market innovation But it is recommended that an effective
business should recognize the dignity and capabilities, as well as the limitations of’
people and planning as demanded by the situation.
4. The study also found out that creativity and innovation has positive impact on
business performance of Selected Small Business in Malete.
5.4 Conclusion
This study has investigated the Impact of Creativity and Innovation on Selected Small
Business in Malete. The results of this study revealed that there is strong relationship
between creativity and innovation and business performance. On the basis of the findings
of this study, it can be concluded that creativity and innovation has both positive and
negative effect on business performance. The study found that creativity and innovation
and business performance, in which they are allowed to have sense of belonging, carry
out higher responsibility with little supervision, and followers are helped to achieve their
visions and needs enhance business Performance. It is concluded that creativity and
innovation is the best for the management to be adopted in order for them to wax stronger
in a global competitive environment.

65
5.5 Recommendations
This study recommends that creativity and innovation is quite essential in
business related to business performance. In this study it has been examined how
business grows towards success and how it achieves its goals and targets. The role of the
creativity and innovation in relation to success was discussed. This study also explains
the different creativity and innovation techniques and their effect on business. These
ideas can be used for the future research especially for the institution based upon
studying. The study suggested that improved the performance of business can help
company to achieved their goals accomplish their goals.
5.5.1 De-Limitations Of The Study
The attitude of the respondents as well as their skepticism to disclosing vital
information that could validate their claims limited the research. The scope of the study
prevents the ability to generalize the findings of the research.
5.5.2 Suggestions for Further Studies
This research work focused on Impact of creativity and innovation on business
performance. The study examined the impact creativity and innovation variables (service
innovation, product innovation, process innovation and market innovation) on business
performance of Selected Small Business in Malete. I hereby suggest that further studies
in the research topic be carried out using more creativity and innovation techniques.
5.5.3 Contribution To Knowledge

66
The area of this research study addresses, is one where there is limited study i.e.
Impact of creativity and innovation on business performance. In view of this research
will contribute significantly to the sparse knowledge in this area of study. Also, the study
will be useful for business to know the various forms of creativity and innovation that
suit different situations as well as making the business to be effective and efficient in its
operation. Business can use the result of the findings to make decisions and help sustain
or increase their chances of success. The study serves as codicils to existing literatures in
this area evaluating and validating the findings realized prior to this study and carried out
in other parts of the world.

67
REFERENCE
Anthony, S. & Smith, A. (2017), The Impact of Entrepreneurial Characteristics on

Entrepreneurial Intention of Sudanese and Omani University Students. European
Scientific Journal.
Anabell & Crooks (2013), Linking two dimensions of entrepreneurial orientation to firm
performance: The moderating role of environment and industry life cycle.
Journal of Business Venturing, 16, 429–451.
Afuah, T. (2014), The dynamics of multimarket competition in exploration and
exploitation activities. Academy of Management Journal, 52(4), 802–821.
Idoho, H. (2016). Effect of Entrepreneurial Skills on the Sustainability of Small and
Medium Family Enterprises After the Exit of the Founders.
Joel, K. (2016), Factors Influencing Intention towards Technopreneurship among

University Students. Journal of Educational and Social Research, 11(1), 162-169.
O’Hara, U. (2017), Effect of Entrepreneurial Skills on the Sustainability of Small and

Medium Family Enterprises After the Exit of the Founders.
Quresh. A. I &Herani, U.O. (2015), ). Product Innovation in Small Manufacturers,

Market Orientation and the Industry’s five competitive forces: empirical
evidence from Spain. European Journal of Innovation Management, 12(4),
470–491.
Richardosm, O. &Crambell, P. (2014)The Role of Innovation in the Postentry
Performance of New Small Firms: Evidence from Italy." Southern Economic Journal 65,
4, 927-39.
68
Sternberg, K. (2010). Characteristics of Innovation and Innovation Adoption in Public

Organizations: Assesing the Role of Managers. Journal of Public Administration
Research and Theory , 495-521.
Screen, C.C. (1976). Skills performance and Memory. In Welford A.T. (Ed) Skilled
Performance: Perceptual and Motor Skills. Scott, Foresman and Company, U.S.A.
Stephen S. Stumpf, Roger, L.M Dumber, Thomas P. Mullen (1991) Developing
Entrepreneurial Skills through the use of Behaviour simulations. Journal of
Management Development, 10(5), 32-45.
Yager, R.E. (1996). Meaning of STS for teacher in Yager R.E. (Ed) STS, as reform in
science Education, New York Press, Albery.

69
APPENDIX
Dear Respondent,
My name is Popoola Semirat Olasumbo , with matric number 17/27ba/740, a student of
the above mentioned University and , faculty of Humanities Management and Social
Sciences department of business administration. I am soliciting for your participation in a
research project with the topic: Impact of Creativity and Innovation on Performance
on Selected Small Businesses In Malete.
The essence of this study is: Impact of Creativity and Innovation on Performance on
Selected Small Businesses in Malete. Your response is highly needed to complete this
research work and it will be treated as confidential and shall be used for research purpose
only.
Thank you.
Yours Sincerely,
Popoola Semirat Olasumbo

70
SECTION A: GENERAL: Please tick () as applicable from the below options

below:
SECTION A: Bio-data (Please tick whichever is applicable)
1) Gender: Male ( ) Female ( )

2) Age: 18-25 years ( ) 26-35 years ( ) 36-45 years ( ) 46-55 years ( )
3) Religion: Christianity ( ) Islam ( ) Others ( )
4) Educational Qualification: OND/NCE ( )B.Sc./HND ( ) MSc/PhD ( )
Post-Doctoral ( )
5) Marital Status: Single ( ) Married ( ) Divorce ( )
6) Working experience: 1- 5 years ( ) 6-10 ( )
71
SECTION B
Please tick as applicable from the below options
Strongly Agree 5, Agree 4, Undecided 3, Disagree 2, Strongly Disagree 1.
S/N STATEMENT OF EVALUATION SA A U D SD

Service innovation
1 The success of the business is built on service
innovation
2 The business service innovation has the direct
link to the business growth.
3 Goodwill of business has improved as a result
of good services innovation of a business.
Product innovation
4 The quality of our products has made the
products more acceptable in the market
5 Product innovation as been the key success to
the business productivity
6 The business focus on customer feedback
when innovating on product
process innovation
7 Technology enhance and improve the
efficiency of the business
8 The performance of the business is on new
technology only
9 Technology has helped to enhance novelty in
this business
Market innovation
10 The business ensure actualization of customer
need by introducing new thing
11 Assessment of market demand improve the
productivity of this business
12 All novel ideas generated in this business are
implemented on market actualization
72
Profitability
13 Profit making aid the goal of the business to be
achieved.
14 Profit helps the business to meet up with the
goal s and objective.
15 services innovation has positive relationship
with profitability of an business
Productivity
16 Orientation and training of Employees in a
business increases the business productivity.
17 Customer satisfaction increases the
productivity of this business
18 Employees interaction increase business
productivity

Popoola Semirat Olasumbo11

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KWARA STATE UNIVERSITY, MALETE

The University for Community Development

IMPACT OF CREATIVITY AND INNOVATION ON

PERFORMANCE OF SELECETD BUSINESSES IN MALETE

Being A Research Project Submitted To Department Of Business

Innovation on Performance of Selected Business in Malete . Is my own

those that are not mine/ours are properly acknowledged.

Semirat Olasumbo Popoola

Performance of Selected Business in Malete’’ was carried out by Semirat

for the award of Bachelor of Science (B.Sc) Degree in Business Administration,

Department of Business and Entrepreneurship, Faculty of Humanities, Management and,

Social Science Kwara State University, Malete.

I dedicate this Project to the magnificence of Almighty ALLAH

my tracks and strengthened me even through my most difficult times. I sincerely

University, Malete, the Dean of Faculty of Humanities, Management and Social

Head of Department of Business and Entrepreneurship, Dr Abu Zekeri. Importantly, I say

to remember you all. Thank you very much.

TABLE OF CONTENTS vii

CHAPTER ONE: INTRODUCTION

1.1 Background To The Study 1

1.2 Statement of Research Problem 2

1.3 Objectives of the Study 5

1.4 Research Questions 5

1.5 Research Hypotheses 6

1.6 Significance of the Study 6

1.8 Limitations of Study 7

1.9 Outline of Study 7

1.11 Definition of Terms 9

CHAPTER TWO: LITERATURE REVIEW

2.1 Concept Creativity and Innovation 11

2.1.3 Dimensions Of Creativity And Innovation 13

2.1.3.1 Incremental Innovation 15

2.1.3.2 Disruptive Innovation 15

2.1.3.3 Architectural Innovation 15

2.1.3.4 Radical innovation 16

2.1.3.5 Process innovation 16

2.1.3.6 Product innovation 16

2.1.3.7 Marketing innovation 17

2.1.4 Importance Of Creativity And Innovation 17

2.1.4.1 Increase productivity 18

2.1.4.2 High overall success 18

2.1.4.3 High overall success 18

2.1.5 Concept of Small and Medium Enterprises 18

2.1.6types of Small and Medium Enterprises (SMES) 19

2.1.6.1 Sole proprietorship 19

2.1.6.3 Cooperative enterprise 21

2.1.7 SMEs Performance 22

2.2 T Theoretical Review 22

2.2.1 Schumpeter’s Innovation Theory 22

2.2.2 McClelland’s Psychological Theory 25

2.2.3 Sociological Theories of Entrepreneurship 27

2.4 Gaps in Literature 33

CHAPTER THREE: METHODOLOGY

3.3 Research Methods 34

3.4 Population of Study 34

3.5 Sample size 35

3.6 Sampling Technique 35

3.7 Methods of Data Collection 35

3.8 Method of Data Analysis 37

3.9 3.9 Research Instrument 37

3.10 Validity of Research Instrument 38

3.11 Reliability of Research Instrument 38

3.12 Ethical Consideration 38