Entrepreneurship posture and new venture performance in Pakistan

Abstract

This study investigates entrepreneurship posture and new-venture performance in Pakistan, by assessing the impact on the performance of newly-established ventures, of two major constructs: entrepreneurial predisposedness, including its dimensions of innovativeness, proactivity and risk taking, and entrepreneurial motivation. The research model and its pertinent hypotheses are tested through structural equation modeling, applied on the data gleaned from 408 small and medium enterprises (SMEs) upstarts. The results show that two entrepreneurial-predisposedness dimensions, i.e., proactivity and risk taking, might have a significant positive effect on new-venture performance, with innovativeness showing an insignificant positive effect. Entrepreneurial motivation also seems to have a significant positive effect on new-venture performance. Despite its limitations, the study contends that uplifting the entrepreneurial motivation and predisposedness of SMEs upstart owners, partners and managers will enhance new-venture performance in Pakistan, while also discussed are implications for future research and practice.

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