Impact of Entrepreneurial Orientation, Access to Finance and Strategic Flexibility on SMEs Performance

Abstract

The sports goods manufacturing sector of Pakistan is comprised of 10,400 small and medium enterprises and annually contributes 6% to the country’s GDP. Despite its prominent role in promoting economic growth research on the sports goods manufacturing sector of Pakistan remains limited. This research analyzed the effect of entrepreneurial orientation, access to finance, and strategic flexibility on SMEs performance in the sports goods manufacturing sector of Sialkot, Pakistan. 400 SMEs were randomly selected out of 10,400 sports manufacturing SMEs in Sialkot, Pakistan. A pen and paper survey method was utilized to collect data from SMEs managers. Out of 400 SMEs contacted 372 agreed to participate in research. 372 usable questionnaires were received back. The results show that entrepreneurial orientation and access to finance have a significant positive effect on SMEs performance. Whereas, strategic flexibility was found to be insignificant in affecting SMEs performance.