scholarly journals The entrepreneurial orientation - Performance relationship: A South African small business perspective

2015 ◽  
Vol 7 (1) ◽  
pp. 36 ◽  
Author(s):  
Tony Matchaba-Hove ◽  
Shelley Farrington ◽  
Gary Sharp
Keyword(s):  
Small Business ◽  
South African ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Small Businesses ◽  
Structural Equation ◽  
Business Performance ◽  
Eastern Cape ◽  
Five Dimensions ◽  
Competitive Aggressiveness

<p>The high failure rate among small businesses in South Africa has created an urgent need to identify strategies that will improve their levels of performance. The purpose of this study was to investigate the relationship between entrepreneurially orientated strategies implemented by small businesses in the Eastern Cape and the influence of these strategies on business performance. Entrepreneurial orientated strategies were assessed in terms of the five dimensions of entrepreneurial orientation, namely innovativeness, proactiveness, competitive aggressiveness, risk-taking and autonomy. Business performance was assessed in terms of profitability and growth. A measuring instrument was developed based on valid and reliable items. Statistical techniques including descriptive statistics, Pearson’s product moment correlations and structural equation modelling, were performed on data gathered from 317 small business enterprises. The results of this study showed that the more small businesses implement the strategies of proactive innovativeness, competitive aggressiveness, and autonomy, and the less risk-taking their strategies are, the more likely their businesses are to be successful.</p><p><strong>Key words:</strong> Small business, Entrepreneurship, Entrepreneurial orientation</p>

scholarly journals Pengaruh Orientasi Kewirausahaan Terhadap Kinerja Usaha Pada Industri UMKM Abon Ikan Di Kota Makassar The Effect of Entrepreneurship Orientation toward Business Performance In Fish Abon SME Industry In Makassar City

2018 ◽  
Vol 1 (2) ◽  
Author(s):  
Ayu Wulandary
Keyword(s):  
Quantitative Analysis ◽  
Risk Taking ◽  
Structural Equation ◽  
Business Performance ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
P Value ◽  
Five Dimensions ◽  
Competitive Aggressiveness

            Business performance is one of the benchmarks of entrepreneurship orientation so that the concept of entrepreneurship orientation of the entrepreneur is important because it has impacts on business performance. The entrepreneurship orientation is shaped by the five dimensions of innovation: risk-taking, proactiveness, competitive aggressiveness, and autonomy. The objective of this study was to analyze the influence of entrepreneurship orientation on business performance of fish abon SME in Makassar. This research employed a Structural Equation Modeling-Partial Least Square (SEM-PLS) 3.0 tool for quantitative analysis. The results of this study indicated that the influence of entrepreneurship orientation had a positive and significant impact on business performance. It could be observed that t-statistic value was 3,302> 1.96 and p-value was 0.001 <0.05, it meant that any improvement to the business adopting entrepreneurship orientation would improve business performance at fish abon SME in Makassar City.

scholarly journals The Effect of Business Orientation on Small Business Performance in Kendari City

2021 ◽  
Vol 1 (1) ◽  
pp. 19-30
Author(s):  
Riski Amalia Madi ◽  
Buyung Sarita ◽  
Agustinus Tangalayuk ◽  
Ece Yulianti
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Small Businesses ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Competitive Aggressiveness ◽  
Purpose Of Business

Small businesses engaged in the food industry sector in the city of Kendari is a business activity that is broadly classified as small and is built by individuals or middle-to-lower groups. The purpose of business development is to earn profits with different levels of performance. One factor that can affect performance is the dimension of entrepreneurial orientation which consists of innovation, proactivity, risk-taking, competitive aggressiveness, and autonomy. The purpose of this study is to examine and provide empirical evidence about the effect of entrepreneurial orientation on the performance of small businesses. The sampling technique in this study uses the probability sampling technique. The analysis used is quantitative analysis using multiple linear regression analysis and quantitative data processing using SPSS 24.0. The results of the analysis using multiple linear regressions found that innovation, proactivity, risk-taking, and competitive aggressiveness have a positive and significant effect on the performance of Small and Medium Enterprises. While autonomy has a positive and not significant effect on the performance of small businesses.

scholarly journals How does entrepreneurial orientation affect the business performance of coffee shop MSMEs in Indonesia?

2021 ◽  
Vol 306 ◽  
pp. 03011
Author(s):  
M. Khalifatul Ardhi ◽  
Jangkung Handoyo Mulyo ◽  
Irham
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Urban Areas ◽  
Structural Equation ◽  
Business Performance ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Coffee Shop ◽  
Competitive Aggressiveness

The increasing growth of the coffee shop business with a fast and attractive expansion as a food & beverage industry in urban areas of Indonesia, especially Special Region of Yogyakarta has led to business competition between micro, small, and medium enterprises (MSMEs) which are required to use their ability to adapt, be competitive and improve business performance. The entrepreneurial orientation is claimed to important contributions to business success. This study aims to analyze the effect of entrepreneurial orientation on business performance. Partial Least Square-Structural Equation Modeling (PLS-SEM) analysis method is used to examine the effect of five dimensions of entrepreneurial orientation (innovative, proactive, risk-taking, autonomy, and competitive aggressiveness) on business performance. This research was conducted at 80 coffee shop MSMEs with the sampling technique using convenience sampling. The results showed that the dimensions of proactive, autonomy, and competitive aggressiveness were found to have a positive and significant effect on business performance, while the innovative and risk-taking dimensions did not affect significantly on business performance.

scholarly journals Entrepreneurial Orientation in Micro and Small Enterprises of Traditional Food Centers in Bandung, West Java

2019 ◽  
Vol 10 (3) ◽  
pp. 167-174
Author(s):  
Margo Purnomo ◽  
Erwin Permana ◽  
Achsanul Qosasi ◽  
Ahmad Fajri Febrian ◽  
Asep Miftahuddin
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Organizational Level ◽  
Small Enterprises ◽  
Traditional Food ◽  
Competitive Aggressiveness ◽  
Micro And Small Enterprises

The research objective was to analyze the determninant factors of Entrepreneurial Orientation (EO) in the Micro and Small Enterprises (MSEs) of the traditional food centers in Bandung. It used the EO dimension at the organizational level. Five dimensions were used to measure the EO level, namely risk-taking, innovativeness, competitive aggressiveness, proactiveness, and autonomy. The questionare’s was distributed to eight MSEs in Bandung. The sample size is 100 employee Structural Equation Model (SEM) analysis techniques with Partial Least Square (PLS) was used to test the samples. This research shows that the EO level in the micro and small enterprises in the traditional food centers in Bandung is at a moderate level. Although EO of MSEs in the traditional food centers in Bandung is in the moderate category, the results of testing on the EO model find out that each EO dimension forms a significant EO construct. The four dominant and recommended dimensions forming an EO construct in MSEs are risk-taking, innovativeness, competitive aggressiveness, and proactiveness. Among the four dimensions, risk-taking is the dominant dimension. It indicates that courage in taking risks in MSEs is a natural characteristic of the EO in the traditional food centers in Bandung.

scholarly journals Entrepreneurial Orientation and Growth in Mexican Small Business

2017 ◽  
Vol 7 (1) ◽  
pp. 94 ◽  
Author(s):  
Gonzalo Maldonado-Guzman ◽  
María Del Carmen Martínez-Serna ◽  
Sandra Yesenia Pinzón-Castro
Keyword(s):  
Small Business ◽  
Random Sample ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Essential Role ◽  
Business Growth ◽  
Positive Effects

In the literature, there are various studies relating positively the entrepreneurial orientation to business performance. In such studies a great deal of variables have been introduced to measure business performance, among the variables most accepted by researchers and academics are profit and business growth. Therefore, it is possible to consider that entrepreneurial orientation plays an essential role in business growth. For that reason, this paper has the objective to analyse the existing relationship between entrepreneurial orientation and growth, by using a random sample of 318 small and medium-sixed enterprises in México. The results obtained show that proactivity, risk taking and innovativeness along with the competitive aggression and autonomy have significant and positive effects on small and medium-sized enterprises’ growth.

scholarly journals Managerial Competencies and Small Business Growth: Empirical Evidence From Microfinance Participants

2014 ◽  
Author(s):  
Syamsuriana Sidek ◽  
Mohd. Rosli Mohamad
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Structural Equation ◽  
Business Performance ◽  
Growth Management ◽  
Business Growth ◽  
Managerial Competencies ◽  
Managerial Skills ◽  
Conceptual Skills ◽  
Small Business Growth

A large number of studies have been conducted on small business performance. However, potential influence of managerial competencies on small business growth, particularly among microfinance participants is hardly existent. In fulfilling the literature gap, this study provides some insight into the relationship between managerial competencies and small business growth. Using data collected from microfinance participants in Kelantan and Terengganu and applying the Structural Equation Modelling approach, this study found that all the managerial competency dimensions – technical, generic and conceptual skills – had positive and significant impacts on small business growth. While consolidating the theories that managerial competencies explain business growth, this study has several limitations. Future studies should delve into, through qualitative research, why managerial skills are significant for small business growth. Sampling should also include small businesses in other parts of Malaysia, instead of Kelantan and Terengganu.   Keywords: Small business, growth, management competencies, generic skills, technical skills, Conceptual Skills, Microfinance.  

scholarly journals Entrepreneurial education and individual entrepreneurial orientation: an experts’ perspective. An empirical Delphi study

2021 ◽  
pp. 46-56
Author(s):  
Daniella Da Silva Teles ◽  
Cecile Nieuwenhuizen ◽  
Chris Schachtebeck
Keyword(s):  
South African ◽  
Risk Taking ◽  
Delphi Study ◽  
Entrepreneurial Orientation ◽  
Entrepreneurial Education ◽  
Individual Entrepreneurial Orientation ◽  
Entrepreneurial Behaviour ◽  
Competitive Aggressiveness ◽  
Entrepreneurial Activities ◽  
Do So

Individual entrepreneurial orientation (IEO) has been defined as the ability to psychologically understand the reasons why individuals choose to engage in entrepreneurial activities. However, for individuals to start these much-needed business ventures, they must be oriented to do so upon completion of their studies. Entrepreneurial education (EE) might directly influence whether students decide to pursue an entrepreneurial venture based on the knowledge and skills, which they feel they have accumulated through their studies. A Delphi study was performed to determine how the EE, being received by university students, in the context of Scotland and South Africa, may influence them to choose an entrepreneurial career. The data were obtained from 16 academic experts, eight from South African universities and eight from Scottish universities. The data were analysed using thematic content analysis. IEO has been studied using the five original dimensions, namely, innovativeness, risk-taking, proactiveness, autonomy, and competitive aggressiveness. However, the results reveal that only three of the five IEO dimensions are prevalent when aligning to a student’s entrepreneurial behaviour. The results also reveal that EE should ensure that practical teachings receive more attention than theoretical teachings. This study may assist universities to better prepare their curriculums to include teachings that will improve the IEO of students.

scholarly journals Orientasi Kewirausahaan dan Kemampuan Inovatif terhadap Kinerja UMKM

2021 ◽  
Vol 5 (3) ◽  
pp. 267
Author(s):  
Felix Felix
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Company Performance ◽  
Innovative Capabilities ◽  
Competitive Aggressiveness

This study aims to analyze the effect of entrepreneurial orientation and innovative abilities on business performance. Entrepreneurial orientation is measured through innovation, proactive, risk-taking, competitive aggressiveness and autonomy, while company performance is measured through financial and non-financial perspectives. The population is SMEs in the Jabodetabek area and obtained with a sample of 259 respondents. The collected data was then analyzed using Smart PLS version 3. The results showed that entrepreneurial orientation positively influenced the performance of companies, especially non-financial. Likewise, innovative capabilities also affect company performance, especially sales. Penelitian ini bertujuan untuk menganalisis pengaruh orientasi kewirausahaan dan kemampuan inovaitf terhadap kinerja bisnis. Orientasi kewirausahaan diukur melalui inovasi, proaktif, pengambilan risiko, agresivitas kompetitif dan otonomi, sementara kinerja perusahaan diukur melalui perspektif keuangan dan non keuangan. Populasi adalah UMKM yang berada di wilayah jabodetabek dan diperoleh dengan sampel sebanyak 259 responden. Data yang telah terkumpul kemudian dianalisis menggunakan Smart PLS versi 3. Hasil penelitian menunjukkan bahwa orientasi kewirausahaan mempengaruhi secara positif kinerja perusahaan khususnya non keuangan. Demikian juga dengan kemampuan inovatif juga mempengaruhi kinerja perusahaan khususnya penjualan.

scholarly journals Determinants of small business performance in a selected region in South Africa: the role of entrepreneurial orientation and competitive advantage

2021 ◽  
Vol 18 (1) ◽  
pp. 1-20
Author(s):  
S.S. Mtshali ◽  
◽  
WT Chinyamurindi ◽  
Keyword(s):  
South Africa ◽  
Small Business ◽  
Competitive Advantage ◽  
Failure Rate ◽  
Entrepreneurial Orientation ◽  
Small Businesses ◽  
Business Performance ◽  
Mediating Effect ◽  
Managerial Implication ◽  
The Relationship

Background: Small businesses in South Africa are an important engine for economic growth. However, the failure rate amongst such businesses remains high. Purpose of study: There is an increasing need for research that explores how small business performs especially on the African continent noted to have a high failure rate of enterprises. The aim of the study was two-fold. Firstly, to ascertain the relationship between entrepreneurial orientation and business performance. Secondly, the study sought to ascertain the mediating effect of competitive advantage on the relationship between entrepreneurial orientation and performance. Design/Methodology/Approach: The study adopted a positivist approach utilising the quantitative methodology to survey a sample of 177 small business owners/managers. Results/Findings: The findings show the existence of a positive and significant relationship between entrepreneurial orientation and business performance. Further, the findings also show that competitive advantage mediates the relationship between entrepreneurial orientation and business performance. Recommendations: Based on these findings, interventions are proposed that relate to how business performance can be improved within an African small business context. Managerial implication: In addressing the failure rate challenge faced by small businesses, the study encourages continued quests and interventions that promote competitive advantage and entrepreneurial capability development.

Measuring entrepreneurship with the General Enterprising Tendency (GET) Test: criterion-related validity and reliability

1999 ◽  
Vol 18 (1) ◽  
pp. 47-52
Author(s):  
Flora Stormer ◽  
Theresa Kline ◽  
Sheldon Goldenberg
Keyword(s):  
Small Business ◽  
Risk Taking ◽  
Test Scores ◽  
Small Businesses ◽  
Need For Achievement ◽  
Validity And Reliability ◽  
Five Dimensions ◽  
Research Context ◽  
Item Questionnaire ◽  
Predicting Success

The General Enterprising Tendency (GET) Test is a 54-item questionnaire that was designed to assess five dimensions of personality: Need for Achievement, Autonomy, Drive and Determination, Risk Taking, and Creativity. These dimensions have been thought to be predictive of an entrepreneurial personality. We evaluated the five subscales and the total GET Test scores with regard to their criterion-related validities in predicting success in small business, internal consistencies, and test-retest reliabilities. One hundred twenty-eight owners of a variety of small businesses took part in this study, and the results indicated that the GET Test needs further refinement, even if it is to be used in a research context.

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