ENTREPRENEURIAL ORIENTATION AND SMALL AND MEDIUM ENTREPRISES PROFITABILIY IN GHANA
ENTREPRENEURIAL ORIENTATION AND SMALL AND MEDIUM ENTREPRISES PROFITABILIY IN GHANA

Summary/Abstract: This study examined the relationship between Entrepreneurial Orientation (EO) dimensions (risk-taking, innovativeness, proactiveness) and profitability of Small and Medium Enterprises (SMEs) in Ghana. The study adapted Covin and Slevin's entrepreneurial orientation scale to collect data from Micro Small and Medium Enterprises (SMEs) owner-managers operating in the handicraft, manufacturing sector in Accra, Ghana. 200 SMEs were randomly selected for the study. Only 150 SMEs owner-managers completed the questionnaires. The authors employed a quantitative research approach to analyse resultant data using descriptive statistics and OLS regression. The study found that SME owner-managers ‘proactiveness and innovativeness were positively and significantly related to profitability. However, we observe that risk-taking ability of an entrepreneur does not foster profitability. The implication for the findings and suggestions for future studies as well as recommendations for SME owners are discussed.

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