An analysis of entrepreneurial orientation in selected small and medium–sized enterprises

Abstract

The positive contribution of high growth small businesses to the economic growth of countries is derived from a body of knowledge in the entrepreneurship domain. Small business growth could be sustained by a better understanding of entrepreneurial orientation. This study is based on the evaluation of entrepreneurial orientation of small businesses in the formal sector with specific reference to businesses in the Gauteng Province. The objective of the study is to analyse entrepreneurial orientation and perceived business success in small and medium-sized enterprises in Gauteng, with the focus on providing recommendations to enhance entrepreneurial activity in small and medium-sized enterprises. A literature review was conducted to explore entrepreneurial orientation and its perceived business success in small enterprises. The five dimensions of entrepreneurial orientation and the two variables measuring perceived business success were explored. A questionnaire constructed by Lotz (2009) was used to measure entrepreneurial orientation variables and perceived business success variables. A target group of 60 business owners was identified and questionnaires were distributed to them. A total of 42 questionnaires were returned but only 38 were deemed usable for the study. The validity of each variable was individually determined by the calculation of the Cronbach Alpha coefficient. Conclusions and recommendations for possible action steps to enhance entrepreneurial orientation were made, based on the empirical data obtained.