The Effect of Entrepreneurship on the Achievement of Business Performance

Arabeche Zina, Mohammed El Amine Abdelli and Shajara Ul-Durar
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Mohammed El Amine Abdelli: UBO - Université de Brest, LEGO - Laboratoire d'Economie et de Gestion de l'Ouest - UBS - Université de Bretagne Sud - UBO - Université de Brest - IMT - Institut Mines-Télécom [Paris] - IBSHS - Institut Brestois des Sciences de l'Homme et de la Société - UBO - Université de Brest - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris]

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Abstract: Entrepreneurship is vital to economic growth, innovation, competitiveness, and poverty reduction. This chapter examines the degree of entrepreneurial orientation (EO) of 101 Algerian manufacturing SMEs and the consequences of EO dimensions such as innovation, proactivity, and risk-taking on business performance. Data were collected throughout a survey with a specifically designed questionnaire, and quantitative techniques were applied for their analysis. The results showed that Algerian SMEs have an average low entrepreneurial orientation. The authors concluded that there are some statically significant relationships between two dimensions of entrepreneurial orientation (proactivity and risk-taking) and SME performance. Thus, the Algerian entrepreneur is characterized by two specific psychological traits: the need for achievement and entrepreneurial self-efficacy. These results could help entrepreneurs plan their activities towards developing the entrepreneurial spirit of Algerian SMEs.

Date: 2023-10-09
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Published in The Importance of Entrepreneurship in Fostering Economic Progress, IGI Global, pp.93-119, 2023, Advances in Finance, Accounting, and Economics, ⟨10.4018/978-1-6684-7127-2.ch006⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04763829

DOI: 10.4018/978-1-6684-7127-2.ch006

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