Entepreneurial Orientation and Growth Nexus, a Case of South African Smes

Obey Dzomonda () and Reginald Masocha ()
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Obey Dzomonda: University of Limpopo
Reginald Masocha: University of Limpopo

Acta Universitatis Danubius. OEconomica, 2018, issue 14(7), 248-258

Abstract: SMEs continue to play a significant role globally. Sadly, there is concern of over the weak performance and the growth of SMEs in South Africa. The major purpose of this study was to evaluate the nexus between EO and growth of SMEs in South Africa. The survey technique was used to gather data through convenience sampling technique. The structural equation model approach was the primary data technique that was used for data analysis through the SmartPLS 3 software. The results of the study pertained to the four hypotheses that were postulated in the study. Of which, a significant positive relationship between EO and growth in employees, market share, and sales was established whereas profitability growth was not found to be significantly and positively related to EO. These findings have implications on the theory of EO and growth of SMEs. Important insights are poised by the findings pertaining to the role that EO plays in the success of SMEs contributing towards the quest of ensuring the survival of SMEs.

Keywords: employment; entrepreneurial orientation; growth; SMEs (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:dug:actaec:y:2018:i:7:p:248-258

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