Dimensions of firm-level entrepreneurial orientation as antecedents to employment growth in SMMEs

Abstract

Unemployment is a socio-economic challenge in many countries, and small businesses are continually touted as vehicles for economic growth and job creation. However, this is largely dependent on the entrepreneurial orientation (EO) of small, medium and micro enterprises (SMMEs) which intensifies business performance. Although EO, as a consolidated construct, has been widely related to business performance, employment growth (EG) is rarely examined as a possible consequence of a firm’s EO. Therefore, this study interrogates the dimensions of EO and how each relates with EG in SMMEs. Using a quantitative research methodology that relied on data collected from 1, 031 respondents, the study revealed that the relationships between the dimensions of EO and EG were statistically-significant for medium-sized businesses (MSBs) exclusively; and not for other categories of SMMEs. Essentially, the study illuminates the relationships between the dimensions of EO and EG and advocates for increased support to MSBs, in the quest to address unemployment in a developing economy context.