The Effects of Entrepreneurial Orientation on Business Performance

Abstract

Entrepreneurship scholars have attempted to explain performance by investigating the relationship between entrepreneurial orientation and firm performance. Therefore, the study will look at how entrepreneurial orientation impact on business performance. Questionnaire was used to collect data from 500 SMMEs owners. The findings from the survey among 500 SMME owners were modelled through a categorical regression model with business performance as dependent variable. The level of significance of the eight variables out of twelve variables suggests that entrepreneurial orientation be classified as the strongest predictor of business performance. The ability to adjust one’s business model to adapt to changed economic circumstances is an important thing as it dictates performance in increasingly competitive economic environment. DOI: 10.5901/mjss.2014.v5n16p141

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