Entrepreneurial orientation and growth in microenterprises

This study examines the impact of financial literacy, capital accessibility, entrepreneurial orientation, and market orientation on the growth and sustainability of Micro and Small Enterprises (MSEs) in Palembang. Using quantitative analysis on a sample of 170 MSEs and Structural Equation Modeling - Partial Least Squares (SEM-PLS), the results show that these factors significantly influence the success of MSEs. Financial literacy enhances entrepreneurial thinking and market orientation, while access to capital supports both. This study highlights the importance of improving financial knowledge, increasing access to funding, and adapting to market conditions to foster MSE growth. These insights are valuable for policymakers, financial institutions, and businesses.

This study aims to provide an overview of Entrepreneurial Orientation in Muslim’s Micro, Small and Medium Enterprises (MSMEs) in West Sumatera Province who are ranked in the top 10 in the number and growth of national Micro, Small and Medium Enterprises. This research used quantitative approach with random sampling (n = 671). Participant of this study are muslim entrepreneurs from different backgrounds such as genders, education, and residence. Individual Entrepreneurial Orientation (IEO) scale was used as the instrument of measurement. The data analysis used is descriptive statistics and mean comparison. The results of the study found that the majority of Micro, Small and Medium Enterprises in West Sumatera opened business in the culinary field and had a very high Entrepreneurial Orientation. Based on the average per dimension, all dimensions had high scores. The dimension of perseverance has the highest average score (8.52) while the lowest score is owned by the innovativeness dimension (7.98). Based on means comparison, significant differences in entrepreneurial orientation were found based on the categories of gender, age, city origin, and gross profit.

The purpose of this article is to investigate the influence of Entrepreneurial Orientation (EO) on the growth of Micro, Small, and Medium Enterprises (MSMEs) in Kenya, which, despite their significant contribution to employment and GDP, continue to face persistent growth barriers and high failure rates. EO—defined by innovativeness, risk-taking, proactiveness, autonomy, and competitive aggressiveness—has been widely studied, but empirical evidence in Sub-Saharan Africa remains limited and context dependent. To address this gap, the study employed a sequential mixed-methods design, combining quantitative surveys of 284 MSMEs with qualitative interviews of 15 owners/managers. Correlation results indicated that proactiveness, risk-taking, and innovativeness were positively associated with growth, autonomy was negatively related, and competitive aggressiveness was weakly positive. Regression analysis confirmed proactiveness, innovativeness, and competitive aggressiveness as significant growth drivers, while autonomy exhibited a significant negative effect, and risk-taking was statistically non-significant. The overall model explained 60.2 per cent of the variance in MSME growth. Qualitative findings complemented these results by showing that risk-taking was often interpreted as survival-driven rather than strategic, and autonomy contributed to inefficiencies due to weak oversight. Conversely, innovativeness and proactiveness were consistently perceived as critical for survival and competitiveness. These findings highlight EO's heterogeneous and context-sensitive effects on MSME performance. The study contributes to theory by advancing a contextualised understanding of EO in emerging economies and provides practical insights for policy and management by recommending strategies to strengthen innovation, proactiveness, and structured autonomy among MSMEs.

The primary objective of this research is to investigate how Entrepreneurial Orientation (EO) influences the growth of Micro, Small, and Medium Enterprises (MSMEs) in Kenya, with particular attention to the autonomy dimension. Although MSMEs contribute significantly to national employment and economic output, many still face persistent barriers that restrict their growth and sustainability. In developing economies, their expansion is often constrained by inadequate resources, institutional challenges, and managerial weaknesses. While the EO construct has been extensively examined, the autonomy aspect—defined as the freedom to make independent decisions and pursue opportunities—remains insufficiently explored within varying contextual settings. Guided by Schumpeterian entrepreneurship and risk-taking theories, this study assesses how autonomy affects MSME performance in the Kenyan context. The research adopts a sequential mixed-methods design, focusing on manufacturing and innovation-driven firms located in Nairobi City County. Using stratified random sampling, data were collected from 284 enterprises. The results indicate a significant negative relationship between autonomy and firm growth (r = 0.576; β = –0.381, p < 0.001). Although autonomy theoretically supports innovation and opportunity recognition, excessive decentralization of decision-making appears to undermine strategic focus and overall performance. The findings suggest that autonomy is a context-dependent component of EO rather than a universally beneficial driver of growth. From a practical perspective, the study emphasizes the need for calibrated autonomy—striking a balance between individual initiative and managerial control. Policy recommendations include enhancing managerial competencies and governance structures to optimize the advantages of autonomy. Overall, the study advances Sustainable Development Goal 8 by highlighting that effective MSME growth depends on integrating entrepreneurial freedom with strong strategic oversight.

The study examines the role of proactiveness, a key dimension of Entrepreneurial Orientation (EO), in the development of Micro, Small, and Medium Enterprises (MSMEs) in Kenya. MSMEs are important for economic growth and job creation in emerging economies, but their expansion in Kenya is hindered by limited credit access, regulatory instability, infrastructural gaps, and intense competition. EO provides a framework for firm competitiveness, with proactiveness, defined as a forward-looking orientation that enables firms to anticipate change, exploit opportunities, and act ahead of competitors, emerging as a particularly strategic capability. Despite its importance, empirical evidence on proactiveness in African MSMEs remains limited. To address this gap, the study adopted a sequential mixed-method design targeting 284 manufacturing firms and innovation-oriented startups in Nairobi. Quantitative data from structured questionnaires were analysed using regression, while qualitative insights from semi-structured interviews highlighted how proactive practices supported opportunity identification, market adaptation, and resilience. Results revealed a significant positive effect of proactiveness on MSME growth (r = .631; β = .574, p < .001), explaining nearly 40 per cent of performance variance. Qualitative findings reinforced that firms embedding proactive scanning and early market entry strategies sustained superior growth despite resource constraints. The study advances EO theory by highlighting proactiveness functions both as a behavioural orientation and a dynamic capability in turbulent environments. Practically, managers are encouraged to institutionalise proactive practices, while policymakers should design ecosystems that reward forward-looking strategies. These insights position proactiveness as a pathway to inclusive and sustainable MSME development in Kenya and comparable economies.

This study sought to establish the influence of establish the influence of organizational technology policies on the Growth of Micro and Small Enterprises in Nairobi, Kenya and; To determine the moderating effect of Entrepreneurial Orientation on organizational technology policies and the Growth of Micro and Small Enterprises in Nairobi, Kenya. The study was grounded on the Resource Based theory. The study adopted a descriptive research design since the design enabled the researcher to generalize the findings to a larger population of MSEs. In addition, this design enabled the researcher describe the characteristics of the population being studied as they exist at present hence minimizing biasness and maximizing the reliability of the evidence collected. This study was guided by positivism philosophy. The target population for this study comprised of all the 1835 Owners or managers of the MSEs registered with Nairobi City County and have operated for more than five years. Stratified and Simple Random sampling techniques was used to select a total of 184 respondents for the study. The study found out that organizational technology policies and organizational technology policies were the key variable that significantly influencing the Growth of Micro and Small Enterprises in Nairobi County, Kenya. Specifically, MSEs Staff were largely found to be un-trained especially on Emerging Technologies and lacked motivation to adopt and use technologies. In addition, study found out that there was low adoption on use of social media platform for business operation. The study recommends that the Management of MSEs needs to make deliberate efforts and invest on training especially on Emerging Technologies such as e-commerce, communication, e-production, e-procurement among others. This will ensure that the MSEs staffs are well equipped with the necessary skills and knowledge needed to effectively utilize the emerging technologies in the market. Further, the management of the MSEs needs to be motivated to adopt and use technologies and innovation. Motivation many be inform of incentives and rewards that motivates users to adopt and use technology in their operations. The is also need to invest in a strong and robust social media platform that are easy to use for most users. Social media networks can be harnessed to boast in product and services marketing and sourcing of market information among other.

This study sought to establish the influence of establish the influence of user's capabilities on the Growth of Micro and Small Enterprises in Nairobi, Kenya and; To determine the moderating effect of Entrepreneurial Orientation on user's capabilities and the Growth of Micro and Small Enterprises in Nairobi, Kenya. The study was grounded on the Technology Acceptance Model (TAM. The study adopted a descriptive research design since the design enabled the researcher to generalize the findings to a larger population of MSEs. In addition, this design enabled the researcher describe the characteristics of the population being studied as they exist at present hence minimizing biasness and maximizing the reliability of the evidence collected. This study was guided by positivism philosophy. The target population for this study comprised of all the 1835 Owners or managers of the MSEs registered with Nairobi City County and have operated for more than five years. Stratified and Simple Random sampling techniques was used to select a total of 184 respondents for the study. The study found out that user's capabilities and organizational technology policies were the key variable that significantly influencing the Growth of Micro and Small Enterprises in Nairobi County, Kenya. Specifically MSEs Staff were largely found to be un-trained especially on Emerging Technologies and lacked motivation to adopt and use technologies. In addition, study found out that there was low adoption on use of social media platform for business operation. The study recommend that the Management of MSEs needs to make deliberate efforts and invest on training especially on Emerging Technologies such as e-commerce, communication, e-production, e-procurement among others. This will ensure that the MSEs staffs are well equipped with the necessary skills and knowledge needed to effective utilize the emerging technologies in the market. Further, the management of the MSEs needs to be motivated to adopt and use technologies and innovation. Motivation many be inform of incentives and rewards that motivates users to adopt and use technology in their operations. The is also need to invest in a strong and robust social media platforms that are easy to use for most users. Social media networks can be harnessed to boast in product and services marketing and sourcing of market information among other.

The purpose of this study was to analyse the influence of Government Sponsored Enterprise credit services on the growth of group-based Micro and Small Enterprises in Kenya. The study was anchored on Resource based theory and Entrepreneurial orientation theory. A concurrent triangulation mixed methodology design was adopted for this study. The target population comprised of 51 officers from Government Sponsored Enterprise Funds and 600 group leaders of group based Micro and small Enterprises who are beneficiaries of Youth Enterprise Development Fund, Women Enterprise Funds and Uwezo Fund in Nairobi County since 2013. The study used proportionate stratified random sampling for the group based enterprises and census for Government Sponsored Enterprise Funds officers. The study Sample size of 240 leaders of group based enterprises was calculated using Yamanes formula and a census of 51 officers of Government Sponsored Enterprise Funds. The study collected primary data using questionnaires and interviews. The study used both qualitative and quantitative statistics. Qualitative data was analyzed thematically along the study objectives and presented in narrative and verbatim form while quantitative data was analyzed using descriptive and inferential statistics. The descriptive analysis included mean, frequencies, percentages and standard deviation while the inferential analysis undertaken was simple linear regression to establish the relationship between credit services and the growth of Micro Small Enterprises. It also assessed the mediating role of group characteristics on the relationship between credit services and the growth of Micro and Small Enterprises in Kenya. Quantitative data was presented using tables. The study found that credit services have a significant influence on the growth of group-based MSEs in Nairobi County, Kenya. Group characteristics partially mediate the relationship between credit services and MSE growth. The study recommends increasing funding limits, empowering group leaders, aligning fund requirements with group-owned enterprises, and developing policies that recognize their unique needs.

This study examines the impact of sustainable business practices, financial literacy, and entrepreneurial orientation on the growth of Micro, Small, and Medium Enterprises (MSMEs). Utilizing a quantitative research approach, data were collected from MSME owners and analyzed using multiple regression techniques. The results indicate that all three factors significantly contribute to MSME growth, with financial literacy emerging as the strongest predictor. Sustainable business practices enhance operational efficiency and market reputation, while entrepreneurial orientation fosters innovation and competitive advantage. The findings underscore the importance of integrating financial education, sustainability initiatives, and entrepreneurial strategies to ensure long-term business success. This study provides valuable insights for MSME owners, policymakers, and financial institutions in developing targeted support programs. Future research should explore moderating factors and conduct cross-country analyses to enhance the generalizability of these findings.

This research examines the effects of individual entrepreneurial orientation (IEO) on informal sector digital micro-enterprise growth in developing countries and the moderating role of networking social capital. The majority of EO research on company growth has focused on registered traditional SMEs and larger enterprises in higher-income markets. A total of 248 informal online micro-enterprises from Senegal were studied. The findings show that IEO has distinct effects on informal digital microbusiness development. Individual risk-taking boosts digital micro-enterprise growth, whereas inventive behaviour hinders it. Proactiveness does not seem to increase growth. Different social capital’s moderating effects on IEO dimensions and online micro-enterprise growth are also found. This study is one of the first to examine individual entrepreneurial behaviour that may lead to the growth of informal digital micro-businesses and the differentiated role of SC. It has also expanded business contextualisation to better comprehend IEO in informal online micro-enterprises outside developed countries.

The growth of micro, small, and medium enterprises (MSMEs) is crucial for Indonesia’s economic and environmental sustainability. However, little is known about how Islamic financial inclusion and sustainability mindsets work together to enhance sustainable business performance in this sector. This study explores the combined impact of Islamic financial inclusion and sustainability mindset on the financial sustainability of East Java’s MSMEs, with green entrepreneurial orientation as a mediating factor. Using a quantitative approach, data was gathered from 115 sharia-compliant MSMEs through structured surveys and analyzed using Structural Equation Modeling (SEM). The results confirm that both Islamic financial inclusion and a sustainability mindset positively influence sustainable financial performance, with green entrepreneurial orientation playing a partial mediating role. Interestingly, the strength of these relationships varies depending on business models. The study bridges Islamic finance principles with sustainability theories, offering empirical evidence for policymakers designing Islamic finance initiatives to support MSME sustainability. It also emphasizes the need for MSMEs to integrate financial accessibility with eco-conscious thinking. These findings contribute to the ongoing discussion on aligning Islamic finance with sustainable development in emerging markets, providing practical guidance for businesses and regulators alike.

The article begins with the presentation of the concept of Entrepreneurial Orientation. Entrepreneurial Orientation assumes that some enterprises, regardless of size, behave in an entrepreneurial way and are proactive, innovative and willing to take risks. The relationships between Entrepreneurial Orientation and the results of enterprises are also subject to research, although its results are not clear – mainly due to the different measures used. On the other hand, the research on the relationship between EO and the enterprise growth is very rare. This prompted the author to develop a separate measure, Growth Orientation, which could be a predictor of growth of micro-enterprises. This tool was built on the basis of the previous research on the effectiveness and shortcomings of the Entrepreneurial Orientation measure, as well as the specifics of the functioning of micro-enterprises. On the basis of the constructed measure, an analysis of the Growth Orientation of 146 micro-entrepreneurs.

This paper aims to examine the role of social networking relationships in growing an informal sector digital microenterprise and the mediating effect of individual entrepreneurial orientation (IEO). Using data from 248 digital microenterprises in the informal sector of Senegal, this study utilizes multiple regression and Hayes process macro Model 4 to show that social networking relationships are positively associated with online informal microbusiness’ growth and IEO. It further reveals that IEO is related to digital microenterprise growth and partially mediates its link with social networking relationships. This study contributes to the social capital literature by showing that social relationships with external entities can provide resources to buffer against infrastructure and resource deficits and other growth challenges found in developing countries. It also extends the literature on IEO by facilitating a deeper understanding of individual entrepreneurial behaviors that can help transform resources from social networking relationships into growth in an informal digital environment.