A Study on the Relationship of Entrepreneurial Orientation and Business Performance in the SMEs of Kurunegala District in Sri Lanka

Abstract

This study was conceived as an attempt to study the relationship of Entrepreneurial Orientation and Business Performance in the Small and Medium Enterprises (SMEs) of Kurunegala District in Sri Lanka. The study was conducted on 275 SMEs in Kurunegala engaged in varied businesses including coconut products, rubber based products, garments and apparels, cement and clay pots, housing and real estate etc. The Entrepreneurial dimensions viz., Innovativeness, Risk Taking Propensity, Pro-Activeness, Competitive Aggressiveness and Autonomy were tested to assess their impact on the business performance. The entrepreneurial orientation and business performance relationship was found to be strong and significant indicating that the SMEs in Kurunegala district adopted better EO postures towards achieving promising returns in their business