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Entrepreneurial Orientation Impact on Micro and Small Enterprises in Egypt

The aim of the proposed study is to test and analyze the impact of Entrepreneurial Orientation (EO) on micro and small enterprises’ growth in Egypt, measured by three growth indicators: sales revenue, profit margin, and employment. The growth rates are measured over four periods (past three years, p...

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Bibliographic Details
Main Author: Negm, Fayrouz
Format: Thesis
Published: AUC Knowledge Fountain 2022
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Summary:The aim of the proposed study is to test and analyze the impact of Entrepreneurial Orientation (EO) on micro and small enterprises’ growth in Egypt, measured by three growth indicators: sales revenue, profit margin, and employment. The growth rates are measured over four periods (past three years, past year, next year, and next three years) to examine the historical and potential impact of EO on growth rates. EO is defined as the process which organizations use to renew themselves and their markets by innovativeness, proactiveness, and risk-taking (Miller, 1983). While EO is considered one of the crucial factors in determining firms’ performance, it has not been thoroughly explored within the Egyptian context. In Egypt, only 50% of MSMEs utilize the financial services offered by the government. We hypothesize that this is due to the lack of EO affecting the management mindset, which has a growth-hindering impact on the financial structure of the firm. Examining EO in Egypt is crucial given the increasingly important role of entrepreneurship in the country’s economic development (El-Said,2014).