The Impact of Entrepreneurial Orientation on Rural Smes Performance in Bikita – Nyika Growth Point

Abstract

The purpose of the study was to establish the effect of entrepreneurial orientation on SME performance at Nyika Growth Point. The specific objectives of the study were to analyze the effect of innovativeness on SME performance, to assess the influence of proactiveness on SME performance, to investigate the effect of risk-taking on SME performance, to determine the effect of competitiveness on SME performance and to establish the effect of autonomy on SME performance. The study was guided by the resource-based view and the entrepreneurship orientation theory. The study adopted a quantitative research approach. The researcher also used stratified sampling technique and the questionnaire was the research instrument which was used. The researcher used a sample size of 90 respondents which was drawn from the study’s population being made up of employees at SMEs at Nyika Growth Point. In the study, the researcher used SPSS 20.0 software to carry out the data analysis. The study revealed that there was a significant positive relationship between innovativeness (.813), proactiveness (.865), risk-taking (.833), competitiveness (.759) autonomy (.780), and SME performance. Proactiveness had the highest very strong positive relationship with SME performance. The study recommends that in order to improve performance SMEs should embrace innovativeness, proactiveness, risk-taking, competitiveness, and autonomy.