The myth that entrepreneurs are born, no more holds good, rather it is well acknowledged now that entrepreneurs can be created and nurtured through addressing issues such as opportunity identification and entrepreneurial orientation which has to a high degree potential to increase enterprise growth of SMEs. This research evaluated the effect on entrepreneurial orientation on the relationship of opportunity identification and enterprise growth. Data evaluated was collected through administering of questionnaires to 86 SMEs registered with the National Council for Construction (NCC). The outcome of this research has reviewed that there is a significant effect of Entrepreneurial Orientation (EO) on Opportunity Identification (OI) and Enterprise Growth (EG) relationship of SMEs in Zambia. This has been supported by Wiklund (2005) who retaliated the fact that empirically, research has found that there is an influence of EO on enterprise growth.
Table of Contents
1. BACKGROUND TO THE RESEARCH
1.1 INTRODUCTION
1.2 RESEARCH BACKGROUND
1.3 PROBLEM STATEMENT
1.4. PURPOSE OF THE RESEARCH
1.5. RESEARCH QUESTION
1.5.1 SUB-RESEARCH QUESTIONS:
1.6 RESEARCH OBJECTIVE:
1.6.1 SUB-OBJECTIVES:
1.7 SIGNIFICANCE OF THE RESEARCH
2. LITERITURE REVIEW
2.1 Introduction
2.2 Definitions
2.2.1 Enterprise
2.2.2 Small and Medium-sized Enterprise overview
2.2.3 The Conundrum of SMEs definition
2.2.4 New EU commission SME definition
2.2.5 Zambia’s Definition and Classification of SMEs
2.2.6 Defining SMEs conceptually for research
2.2.7 Significance of SMEs in Zambia
2.2.8 Relevance of SMEs’ growth
2.2.9 Definition of the Key Concepts for this Research
2.3 ENTREPRENEURIAL ORIENTATION
2.3.1 Explaining EO and Dimensions of EO
2.3.2 Salient Dimensions Entrepreneurial Orientation (EO)
2.4 OPPORTUNITY IDENTIFCATION
2.4.1 Opportunity identification factors
2.5 BUSINESS GROWTH
2.5.1 Measuring Growth and Indicators to Growth
2.6 BARRIERS TO ENTERPRISE GROWTH
2.6.1 Entrepreneurial skills as Factor to Enterprise Growth
2.7 RELATIONSHIPS OF RESEARCH CONCEPTS
2.7.1 Opportunity Identification and Growth
2.7.2 Opportunity Identification and Entrepreneurial Orientation- IO and EO
2.7.3 Entrepreneurial Orientation and Firm Growth
2.7.4 Entrepreneurial Orientation, Opportunity Identification and Business Growth
3. CONCEPTUAL FRAME WORK
3.1 INTRODUCTION
3.2 KEY CONCEPTS
3.2.1 Enterprise Growth (EG)
3.2.2 Entrepreneurial Orientation (EO) and Opportunity Identification (OI)
3.3 The Conceptual Framework Model
3.3.1 HYPOTHESES DEVELOPMENT
4. RESEARCH METHODOLOGY
4.1 Introduction
4.2 Research Design
4.3 Research Approach
4.4 Research Population
4.5 Sample Size
4.6 Variables
4.6.1 Dependant Variable
4.6.1.1 The dependent variable in our research was Enterprise Growth (EG)
4.6.2 Independent Variables
4.6.2.1 Opportunity Identification (OI)
4.6.2.2 Entrepreneurial Orientation (EO)
4.7 Data Collection Techniques
4.7.1 Secondary data
4.7.2 Primary data
4.7.3 Data Collection Tool (Instrument)
4.8 Reliability and Validity
5. DATA ANALYSIS
5.1 Growth
5.2 Opportunity Identification
5.3 Entrepreneurial Orientation
5.4 Hypothesis Testing
6. DISCUSSION, CONCLUSION, LIMITATIONS AND RECOMMENDATIONS
6.1 Discussions
6.2 Conclusion
6.3 Limitations
6.4 Recommendations
Research Objectives and Themes
The primary objective of this research is to evaluate the moderating influence of Entrepreneurial Orientation (EO) on the relationship between Opportunity Identification (OI) and the Enterprise Growth (EG) of Small and Medium Enterprises (SMEs) in Zambia. The study aims to determine if entrepreneurial traits can bridge the gap between identifying market opportunities and achieving sustainable business growth.
- Analysis of Entrepreneurial Orientation (EO) dimensions: innovativeness, risk-taking, and proactiveness.
- Evaluation of the role of Opportunity Identification (OI) in SME performance.
- Investigation into the factors hindering the growth of Zambian SMEs.
- Empirical testing of the mediating effect of EO on the OI-growth relationship.
- Examination of the strategic management and internal skills of entrepreneurs.
Excerpt from the Book
1.1 INTRODUCTION
The myth that entrepreneurs are born, no more holds good, rather it is well acknowledged now that entrepreneurs can be created and nurtured through addressing issues such as opportunity identification and entrepreneurial orientation which has to a high degree potential to increase enterprise growth of SMEs (Kerosi and Kayisime, 2013).
Moreno (2008) observed an increased interest in the best way of explaining the phenomenon of enterprise growth, that there are diverse motives for this growing interest. As a result from the economic and social point of view, there is the fact that firms that grow more are the ones that generate more new jobs. Also, from the academic point of view, growth constitutes one of the least studied dimensions of performance within the field of management, as compared to other variables such as profitability.
An overall propensity in today’s business settings is the shortening of product and business model life cycles. As a result, the impending profit coming from established operations are not clear and enterprises need to constantly seek out new opportunities. Therefore, they may profit from adopting an ‘‘entrepreneurial strategic orientation’’ (EO). This involves a willingness to innovate to rejuvenate market offerings, take risks to try out new and uncertain products, services, and markets, and be more proactive than competitors toward new marketplace opportunities (Wiklund, 2005). When looking at the Strategic orientation of Small and Medium Enterprise, the firm’s strategic management and its success is centered at the entrepreneur’s skills, abilities perception and orientation this is so because Strategic Orientation of an SME is made up of Entrepreneurial Orientation (Covin, 2006, Chen, 2012). Shepherd (2005) hit back on the view that in this rapidly changing world, entrepreneurs need to continuously identify new business opportunities.
Summary of Chapters
1. BACKGROUND TO THE RESEARCH: This chapter introduces the research topic, providing context on the importance of SMEs in Zambia and highlighting the need to study the internal factors of entrepreneurial success.
2. LITERITURE REVIEW: This chapter examines existing scholarly literature on enterprise growth, opportunity identification, and the dimensions of entrepreneurial orientation, forming the theoretical basis for the study.
3. CONCEPTUAL FRAME WORK: This chapter outlines the conceptual model and development of research hypotheses based on the relationship between opportunity identification, entrepreneurial orientation, and business growth.
4. RESEARCH METHODOLOGY: This chapter describes the research design, approach, population, sample size, and the data collection tools (questionnaires) used to conduct the study.
5. DATA ANALYSIS: This chapter presents the empirical results obtained through statistical analysis (SPSS), focusing on the correlations and regression models testing the research hypotheses.
6. DISCUSSION, CONCLUSION, LIMITATIONS AND RECOMMENDATIONS: This chapter interprets the findings, concludes that Entrepreneurial Orientation significantly mediates the growth relationship, and offers recommendations for future research.
Keywords
Entrepreneurial Orientation, Opportunity Identification, Enterprise Growth, Small and Medium Enterprises, SMEs, Zambia, Innovativeness, Risk-taking, Proactiveness, Strategic Management, Business Performance, Correlation Analysis, Regression Model, Entrepreneurial Skills, Economic Development
Frequently Asked Questions
What is the core focus of this research?
The research focuses on the impact of Entrepreneurial Orientation (EO) as a mediating factor on the relationship between Opportunity Identification (OI) and the growth of Small and Medium Enterprises (SMEs) in Zambia.
What are the primary themes explored?
The main themes include entrepreneurial orientation (innovativeness, risk-taking, proactiveness), the process of opportunity recognition, factors affecting SME growth, and the strategic management capabilities of entrepreneurs.
What is the main objective of this study?
The primary objective is to evaluate how an entrepreneur's orientation influences their ability to turn identified opportunities into actual enterprise growth, addressing a gap in research within the Zambian context.
Which research methodology was employed?
The study used a causal comparative research design, employing both qualitative and quantitative approaches. Data was collected via questionnaires from 86 SMEs registered with the National Council for Construction in Zambia and analyzed using SPSS.
What does the main body of the work cover?
The main body covers a comprehensive literature review, the development of a conceptual framework with testable hypotheses, detailed methodology, and a data analysis section utilizing Pearson correlation and regression analysis.
Which keywords define this research?
Key terms include Entrepreneurial Orientation, Opportunity Identification, Enterprise Growth, SMEs, Zambia, Innovativeness, Risk-taking, and Proactiveness.
Why is this research important for Zambian SMEs?
The research provides a reference point for policy makers and entrepreneurs, suggesting that internal entrepreneurial skills are vital for business growth, which has been largely overlooked compared to external factors like finance.
What did the regression analysis conclude?
The analysis concluded that Entrepreneurial Orientation exerts a stronger unique effect on Enterprise Growth than Opportunity Identification alone, thus acting as a crucial mediator for firm success.
- Quote paper
- Enock Joseph Musaana (Author), 2014, The Effect of Entrepreneurial Orientation on the Relationship between Opportunity Identification and Enterprise Growth of SMEs in Zambia, Munich, GRIN Verlag, https://www.grin.com/document/304316
