Entrepreneurial orientation dimensions, barriers of access to finance and small business performance: a proposed conceptual framework

• Main Authors: Syamsuriana Sidek, Mohd Rosli Mohamad, Wan Mohd Nazdrol Wan Mohd Nasir
• Format: Book Section
• Language: English
• Published: Faculty of Entrepreneurship and Business,UMK 2015
• Online Access: http://discol.umk.edu.my/id/eprint/8556/1/Conference%20Paper%2011%20ISEB%202015.pdf; http://discol.umk.edu.my/id/eprint/8556/

Small and Medium Size Enterprises (SMEs) have sparked a heated debate among researchers since last decade. Recognizing the significant contribution of SMEs included small business in enhancing Gross Domestic Product (GDP), entrepreneurial development, export performance, poverty alleviation, employment opportunity, equal distribution of income, domestic savings, income distribution and tax revenues to local economy as well as country, etc. numerous support programmes emphasize on the development of entrepreneurial orientation (EO) since EO at the organization level is a behavioural construct that has been successfully measured and has been positively correlated in improving performance. Some prior studies, however, contend that the relationship between entrepreneurial orientation and firm performance may be more complex than a simple main effect. Based on Resource Based-View (RBV) Theory, the firm must have valuable resources and capabilities as a source of sustainable for competitive advantages. Access to finance can be considered as crucial source needed by small businesses to help them set up and expand their operations, develop new products and invest in new staff or production facilities. This study provides a proposed conceptual framework for the relationship between entrepreneurial orientation and small business performance. This study also attempts to connect the mediating role of barriers of access to finance and moderating role of firm size in the relationship between EO and small business performance. The conceptual model is founded in a synthesized understanding of these three main construct by supporting from previous literature. A study of this nature is vitally-important to highlight the stakeholder such as government, private bodies, NGOs, policy maker and small entrepreneurs on the important of EO and accessibility to finance on performance of small business sector.