Entrepreneurial Orientation and Performance of Small Scale Enterprises in Kansanga, Makindye Division, Kampala

TABLE OF CONTENTS

DECLARATION

APPROVAL

(Academic Supervisor) I

DEDICATION Ii

ACKNOWLEDGEMENT iv

ABSTRACT viii

CHAPTER ONE 1

1.0 Introduction 1

1.1 Background of the Study 1

1.2 Sta~ethent of the problem 3

1.3 Pu~pose of the study 4

1.4 Specific objectives 4

1.5 Research questions 4

1.6 Scope of the study 4

1.6.1 Content Scope 4

1.6.2 Geographical Scope 4

1.6.3 Time Scope

1.7 Significance of study 5

1.8 Conceptual Frame Work 6

CHAPTER TWO 7

LITERATURE REVIEW 7

2.0 Introduction

2.1 Entrepreneurial orientation 7

2.1 Effect of entrepreneurial innovativeness on performance of SMEs 7

2.2 Effect of entrepreneurial risk taking on performance of SMEs 10

2.3 Effect of entrepreneurial autonomy on SMEs performance 13

CHAPTER THREE 15

METHODOLOGY 15

3.0 Introduction 15

3.1 Research Design 15

3.2 Research Population 15

V

3.3

3.4

Sample

Sampling

Size.’5

techniques and Procedure .16

3.5 Sources of data 16

3.5.1 Primary data 16

3.5.2 Secondary data 16

3.6 Data collection Methods 16

3.6.1 Questionnaire method 16

3.6.2 Interview method 17

3.7 Data Processing ancf Analysis 17

3.8 Ethical Procedures 17

3.9 Limitations and Solutions 18

CHAPTER FOUR 19

DATA PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDINGS 19

4.0 Introduction 19

4.1 Demography of respondents 19

4.1.1 Gender of respondents 19

4.1.2 Age distribution of respondents 20

4.1 .3 Marital status of respondents 20

4.1.4 Academic Qualifications of respondents 21

4.1.5 Time of work in the businesses 21

4.2 Entrepreneurial orientation in SMEs in Kansanga 22

4.3 Performance of SMEs in Kansanga Kampala 24

4.4 Objective one; Relationship between entrepreneurial innovativeness on performance of SMEs in

Kansanga Makindye division 26

4.5 Objective two; Relationship between entrepreneurial risk taking on performance of SMEs in

Kansanga Makindye division 26

4.6 Objective three; Relationship between entrepreneurial autonomy on performance of SMEs in

Kansanga Makindye division 27

CHAPTER FIVE 29

DISCUSSION OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS 29

5.0 Introduction 29

5.1 Discussion of Findings 29

vi

5.2 Conclusions .31

5.3 Recommendations 31

5.4 Areas for further research 32

REFERENCES 33

Appendix i: Questionnaires 36

Appendix ii: Research work plan 39

Appendix iii~ Budget 40

ABSTRACT The purpose of the study is to investigate the influence of entrepreneurial orientation on the performance of small and medium enterprises (SMEs) in Uganda. The objectives were establish the effect of Entrepreneurial innovativeness on performance, to determine the effect of entrepreneurial risk taking on performance of SMEs and to investigate the effect of entrepreneurial autonomy on performance of SMEs in Kansanga Makindye division. The study was conducted in SMEs in Kansanga Parish Makindye division. The data was collected using the questidnnaires from 50 respondents were the data was collected from the SMEs located in Kansanga. The study used a descriptive research design. The study results indicated a significant relationship between entrepreneurial innovativeness and performance of SMEs in Kansanga at 0.05 Level of significance, since the sig. value .013. There was a significant relationship between entrepreneurial risk taking and performance of SMEs in Kansanga at 0.05 Level of significance, since the sig. value (.008) and finally there significant relationship between entrepreneurial autonomy and performance of SMEs in Kansanga at 0.05 Level of significance, since the sig. value (.049) was less than 0.05. The study concludes that entrepreneurial innovations were quite low though innovation contributed to a significant effect to performance of SMEs, the study concludes that innovations improvement enhances performance. It is also concluded that risk taking venture of the entrepreneurial orientations has an effect on performance of SMEs, the study conclude that risk taking of the entrepreneur has a contribution to performance and finally entrepreneurial autonomy was sighted in the SMEs in Kansanga, the results indicate that entrepreneurial orientations of autonomy can generate performance for the business. The study recommend that their need for emphasis on better approaches towards entrepreneurial orientation as these will ultimately improve on performance of SMEs and other players in the business sector. This can be done through hiring experienced personnel in the field of investment and trade. There is need for setting up effective investment boards to advise and initiate entrepreneurs on how to execute well drawn plans in order to improve performance of SMEs. This can be done through hiring scouts to identify investment opportunities and places with potential as well as identifying the most effective planning approaches.