Contributing Factors to Entrepreneurial Orientation for Rural Small and Medium Enterprise Survival and Growth

Abstract

In the economics and entrepreneurship literary works, studies examining the connection of entrepreneurial orientation (EO) with firm performance have generated much interest of late. Empirical research investigating business performance factors has demonstrated small and medium enterprise (SME) EO significantly improves their survival and profitability. The connection has, however, received little or no recognition within the SME landscape. Results from the study this article reports on, showed small or insufficient local markets for SMEs to sell their goods, an absence of funding, as well as stringent regulatory requirements negatively impact SMEs’ ability to grow, as well as the EO for their survival and development. This research, therefore, analysed this link in the context of SMEs in rural areas of KwaZulu-Natal (KZN). According to the current research, to achieve outstanding performance and a lasting edge over rivals, SME owners-managers ought to embrace an EO attitude. This paper sheds light on the significance of institutional and financial factors for EO among SMEs in the rural areas of the KZN province of South Africa.