Influence of Quantitative approach on Entrepreneurial Orientation and Financial Performance under Small and Medium Enterprises (SMEs): A Case of the Ghanaian Manufacturing Sector

Author(s)

Charles Mawuena Gates , Dr. Mengyu Wu ,

Download Full PDF Pages: 16-29 | Views: 915 | Downloads: 276 | DOI: 10.5281/zenodo.3384392

Volume 8 - November 2019 (11)

Abstract

the fundamental objective of this study was to quantitatively examine the influence of entrepreneurial orientation on financial performance under Small and Medium Enterprises (SMEs) in Ghana. This study centred on the SMEs in the manufacturing subsector of the Ghanaian economy. The study employed a quantitative research approach because there was a need to generate numerical evidence and data sets that depict the current situation and trend of the SMEs operations in Ghana. Research data sample of two hundred and sixty-seven (246) SMEs owners and managers in the manufacturing subsector were used in the study. Data collected was coded using Statistical Package for Social Sciences (SPSS V22.0) and Structural Equation Modelling (SEM) was used to evaluate the proposed model for a clear understanding of the relationships that exist among SMEs and its constructs. The study found out that, there is statistically a significant relationship between entrepreneurial orientation and SME financial performance quantitatively. Specifically, the result highlights SME innovativeness, autonomy, proactiveness and competitive aggressiveness as the dimensions of entrepreneurial orientation that have a significant positive effect on SME financial performance in Ghana’s economy. The study seeks to discover how the dimensions of entrepreneurial orientation result in SME financial performance of manufacturing firms in Ghana. The manufacturing companies selected for this study are based in the capital of Ghana, Accra. These manufacturing companies were selected due to proximity and most importantly Accra seems to be the host of many small and medium enterprises (SMEs) in Ghana.  

Keywords

Entrepreneurial orientation, Structural Equation Modelling, quantitative approach, financial performance, Small Medium Enterprises

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