Entrepreneurial Orientation and Business Performance: An Empirical Study of SMEs in Nashik District of Maharashtra
Keywords:
Business performance, entrepreneurial orientation, innovation, Nashik district, proactiveness, small and medium-sized enterprisesAbstract
Purpose: Small and Medium-sized Enterprises (SMEs) act as a country's backbone for economic growth and employment generation. The ability of an organisation to recognise and grab opportunities, create new products and services, and adapt to evolving market conditions is directly connected with its entrepreneurial mentality. The current study aims at finding the relationship between entrepreneurial orientation and business performance of SMEs. Further, the study also aims at identifying the key factors that influence the entrepreneurial orientation of the SMEs and the strategies that can be used by the SMEs to enhance their entrepreneurial orientation and accordingly their business performance. Methodology: In this study, quantitative research design was followed and a cross-sectional survey was conducted to gather the data from a total of 69 SMEs from Nashik district. Stratified random sampling was utilized to select SMEs from various sectors proportionately. Descriptive and inferential statistical analyses were employed to analyze the collected data. Findings: The current study findings reveal that creativity and proactiveness play crucial roles in SME success. The results suggest that SMEs should foster an innovative and proactive culture to enhance their business performance. Moreover, the study emphasizes the significance of entrepreneurial orientation in overall success, with a considerable number of SMEs recognizing its importance. However, the findings indicate that risk-taking and autonomy do not significantly correlate with company performance, implying that SMEs should focus on other factors to improve their performance. Implications: The current study provides valuable insights about the relationship that exists between entrepreneurial orientation and the performance of the SMEs’ business at Nashik district, Maharashtra. The current study recommended the business people and decision-makers to emphasize on creativity in their business activities, nurture a work environment that boosts the entrepreneurial behaviour among the employees, develop strategic alliances, form a risk management strategy and leverage technology. The current study is a first-of-its-kind attempt among the target audience in the Nashik district of Maharashtra.
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