Abstract:
The objective of this study is to find the Entrepreneurial Orientation among small-scale enterprises in Kandy district. Further, it finds out the impact of Entrepreneurial
Orientation of entrepreneurs on the financial performance of small-scale enterprise in
in Kandy. The SME sector has become a crucial segment and a major section of
private sector in developing countries. Therefore, for the developing countries, it is
important to accelerate the growth of small and medium enterprises in order to gain
sustainable development. However poor practices of Entrepreneurial Orientation, poor
financial activities, lower attainment of the entity's goal objective and failing to
protect organization assets lead to failure of the business. Therefore, this research
aims to explore Entrepreneurial Orientation on financial performance of SMEs in
Kandy district and evaluate whether Entrepreneurial Orientation have an impact to the
financial performance of the business.
Entrepreneurial Orientation was looked at from the Innovativeness, Risk Taking, Pro
Activeness, Autonomy and Competitive Aggressiveness of the owners of SMEs.
Primary data was collected from owners of manufacturing SMEs in Kandy district.
There, one hundred entrepreneurs were selected as sample and questionnaires were
issued to them to collect the primary data. Collected data for the study was presented
in the form of tables, chart, and analyzed using the software Statistical Package of
Social Science, version 23.0. The data analysis included the Univariate analysis
(descriptive) and Bivariate analysis.
According to the analysis, the finding showed Entrepreneurial Orientation of SMEs is
at moderate positive level and also financial performance is also at moderate positive
level. However, majority of respondent have high level of marketing competencies
practice and business performance in Kandy district. There is positive relationship
between Entrepreneurial Orientation and financial performance
