Impact of Entrepreneurial Orientation on Small and Medium Enterprises Performance in Botswana

Abstract

Small and medium enterprises (SMEs) are an essential component of an economy. However, in today’s increasingly challenging business environment, SMEs encounter challenges in their performance. Therefore, there is a necessity to identify strategies that can enhance their performance such as Entrepreneurial Orientation. Guided by the resource-based view and dynamic capability theory, the study assessed the impact of Entrepreneurial Orientation and SMEs performance. A survey research design was adopted to gather information from SMEs in Gaborone through the quantitative method. Data from 368 SMEs owners/managers were collected and analyzed through Partial Least Square-Structural Equation Model (PLS-SEM) technique. From statistical results, all dimensions of entrepreneurial orientation, except risk-taking have a significant impact on SMEs’ performance. This evaluation may assist decision makers in enhancing their business practices consequently influencing their performance and insightful implications for researchers.