Acta Universitatis Danubius. Œconomica, Vol 14, No 7 (2018)

Entepreneurial Orientation And Growth Nexus, A Case Of South African SMEs

Obey Dzomonda, Reginald Masocha


This contribution aimed at examining the link between EO and the growth prospects of SMEs in rural areas. The study was quantitative in nature where 65 SMEs responded to the survey. The self-administered questionnaire was adopted and used to collect data. The study used the simple random sampling technique to sample the respondents and this also increased the objectivity of the data collection method used. The analysis methods used in the study were descriptive statistics, T-tests and regression analysis. Reliability was tested using of the Cronbach’s alpha. Descriptive statistics showed that SMEs have unsatisfactorily low levels of EO. The T test results established gender differences on the EO of SMEs with men willing to take more risks than women. Furthermore, the regression results established that EO is positively linked to the growth prospects of SMEs. This implies that EO is a good determinant of growth. It was recommended for the government to put gender into consideration when designing programmes to empower entrepreneurs. On the other hand, SME owners were encouraged to enroll for entrepreneurship courses to improve their EO levels.


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