Strategic entrepreneurship and performance of small and medium enterprises in selected sectors of Huye District

Abstract

This study was to establish the relationship between strategic entrepreneurship, entrepreneurial orientation and strategic orientation and performance in selected SMEs in Huye district. The study was guided by the following research objectives (i) explore the relationship between entrepreneurial orientation and SMEs performance (ii) analyze the relationship between strategic entrepreneurship and SMEs performance and (iii) analyze the relationship between strategic entrepreneurship and performance of SMEs.

The study used descriptive survey design particularly descriptive correlational design adopting quantitative approach. The researcher used a sample of 140 respondents selected through simple random sampling. Methods for data collection were questionnaires. Frequency table and percentage distributions, Pearson‘s correlation coefficient were used to present and statistically analyze data collected. Findings revealed that there was positive significant relationship between all the study independent variables of entrepreneurial orientation, strategic orientation, strategic entrepreneurship and dependent variable of performance of SMEs which included sales growth, profitability and net profit. The study showed that there was satisfactory performance of SMEs in Huye district. The researcher concluded that entrepreneurial orientation, strategic orientation and strategic entrepreneurship had positive relationship with performance of SMEs.

The research recommended that for SMEs managers or owners to remain competitive, they should recognize, pursue and exploit entrepreneurial opportunities in an effort to grow and perform better, managers should get formal entrepreneurial training to enhance performance and should create a culture that encourages innovation, risk taking and pro-activeness as well as in their operations. The areas for further researches have been suggested at the end of the study.