The Role of Entrepreneurial Orientation to SME Performance in Bangladesh

Abstract

This paper has examined the relationship between SME performance and Entrepreneurial Orientation (EO) in Bangladesh. Data have been collected from the SME entrepreneurs working in Dhaka, Bangladesh. Followed by convenience sampling, a total of 193 entrepreneurs’ information (out of 300) was retained using a pre-tested survey questionnaire. Correlation analysis and hierarchical regression were used to test the hypotheses. The study covered five dimensions of EO-risk-taking, innovativeness, proactiveness, competitive aggressiveness and autonomy. Except for competitive aggressiveness, all dimensions of entrepreneurial orientations possess a positive significant effect on SME performance. This study has shifted the application of EO concept from developed countries to an emerging economy to scrutinize how do different dimensions of EO determine the performance of SMEs in Bangladesh. The findings of the study also provide some insightful implications for business managers and researchers.

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