This study examine business dynamics and manufacturing firm performance in Delta State. To achieve this, the survey type of the quasi-experimental research design was adopted whereby 20 manufacturing companies registered under the Manufacturing Association of Nigeria (M.A.N.), Edo/Delta State Chapter, comprising 20 managers and 100 departmental heads were used. The instrument for collecting data from the sampled respondents was the questionnaire which was mailed across to them, out of which only 107 were found usable and viable for analysis giving a response rate of 89%. The descriptive statistics (frequencies and mean) was employed in the analysis of the data received. SPSS (v.23) was used in carrying out the analysis. From the analysis conducted and the findings extracted, the study concludes that the entry rate of new firms cannot necessarily determine the market share of firms in a manufacturing industry. Also, it was resolved that firms’ exit rate in the manufacturing sector could be associated with poor innovative measures and that productivity is an essential determinant of the survival of incumbent manufacturing firms. Drawing cue from the findings, the researchers recommend that since it has been established that poor innovative measures can force a firm to exit from the market, managers and departmental heads should have an open mind in welcoming creative ideas and innovative spirit from their subordinates and that managers and departmental heads should pay more attention to their firms’ output by checkmating their firm’s productivity levels regularly so as to increase their survivalv