Important factors of SMEs entrepreneurial orientation

Abstract

Effective implementation of EO attributes represents an important factor of SMEs’ success on the target market, and significantly determines its long-term existence. The aim of this paper was to define and quantify the significance of EO factors influencing SMEs business orientation. In connection to the defined target, separate research was conducted using a questionnaire in the Czech Republic attended by 1,141 enterprise owners within the SME segment. The method of regression analysis was used to quantify the significance of respective factors and to determine their statistical significance. The results of the research indicate that SMEs’ entrepreneurial orientation is mostly affected by the following factors: Investing finances into development of new methods and technologies (EO13), Conducting risky projects for the purpose of increasing the enterprise’s performance (EO23), Initiative on the target market (EO32), and Activities performed towards competition (EO43). Subsequently, it was determined that factors such as Enterprise’s risk strategy (EO21), Creating an entrepreneurial environment within the scope of the enterprise (EO33), Aggressive activities towards competition (EO42), and Reputation for being an autonomous enterprise (EO51) do not affect the overall degree of entrepreneurial orientation. The results of this research may serve as an inspiration for further research in the field of SMEs entrepreneurial orientation. © 2019, Bulgarska Akademiya na Naukite. All rights reserved.