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Reputational Capital and Entrepreneurial Success of SMEs in Otuoke, Bayelsa State

Ekubo Maudlinepac Buna PhD

Abstract

This study examined the relationship between reputational capital and entrepreneurial success of Small and Medium Enterprises (SMEs) in Otuoke, Bayelsa State, Nigeria. The research specifically investigated how honesty, as a key dimension of reputational capital, affects employee retention and customer satisfaction, which serve as indicators of entrepreneurial success. A descriptive survey research design was adopted, with the population comprising 232 SMEs in Otuoke. Using Taro Yamane’s formula, a sample size of 147 SMEs was selected, and data were collected through a structured questionnaire. Descriptive statistics and Pearson Product-Moment Correlation were employed to analyze the data and test the hypotheses at a 5% level of significance. The results revealed that honesty has a significant and positive relationship with employee retention (r = 0.693, p = 0.021) and customer satisfaction (r = 0.721, p = 0.013). These findings suggest that SMEs with strong reputational capital, particularly honesty, are more likely to retain employees, enhance customer loyalty, and achieve sustainable entrepreneurial success. The study concludes that cultivating reputational capital is critical for improving business performance, gaining competitive advantage, and fostering long-term growth in SMEs. It recommends that SME owners prioritize ethical practices, transparent operations, and consistent quality service to strengthen reputation and drive business success in Otuoke.

Keywords

Reputational capitalHonestyEmployee retentionCustomer satisfaction

References

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