Strategic entrepreneurship and performance of small and medium enterprises in South Africa.
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.
Entrepreneurship, Strategic planning, Small business, Small and medium enterprises, South Africa, Innovation