Strategic entrepreneurship and performance of small and medium enterprises in South Africa.
Date
2012-10-16
Authors
Mohutsiwa, Moshe
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Abstract
The aim of this paper is to investigate the link between strategic
entrepreneurship and company performance. For the purpose of this study,
strategic entrepreneurship is divided into two sections; entrepreneurial
orientation and planning flexibility. The entrepreneurial orientation factors used
are proactiveness, risk-taking and innovativeness.
A survey was conducted on 133 SMEs’ representatives on a purposive and
convenience basis. The results of the study indicate that, in the South African
context, SMEs need to be proactive, take risks and be innovative to influence
their own performance. The study further indicates that flexibility in planning is
vital for the improved performance of SMEs. The external environment
influences the relationship between entrepreneurial orientation, planning
flexibility and a firm’s performance. These results correlate with the existing
literature on the entrepreneurial orientation, flexibility in planning and
performance of SMEs.
The findings of this survey and this research paper should serve to benefit
entrepreneurs and SME owners and managers and encourage them to develop
entrepreneurial orientation and planning flexibility programmes.
Description
Keywords
Entrepreneurship, Strategic planning, Small business, Small and medium enterprises, South Africa, Innovation