Entrepreneurial Orientation and Business Growth the Case of Guraghe Zone selected Woredas

Abstract

Entrepreneurship is critical to the maintenance of a healthy economy and if economic development is to be effective, new businesses in low-income areas must be started. As per their level of propensity to practice Entrepreneurial Orientations, Micro and Small Enterprises (MSEs) play an important economic role in many countries and are recognized as an important vehicle for economic diversification, employment creation, and income generation and distribution. The aim of this study was to describe the entrepreneurial orientation and its relation to MSEs' growth in selected woreda in the Gurage zone. The study was conducted through a descriptive design in which a stratified random sampling method was used to collect data from cooperative MSEs of five sectors according to the objective of the study with a total population of 917 and 279 samples. The samples were selected randomly from each stratum using proportionate allocation after stratification of the sectors. It is generally recognized that though MSEs are contributing toward employment and income generation and distribution, still they lack proper application of entrepreneurial orientation in the way it can foster the growth of the business. Moreover, the study indicates the cooperative MSEs under study have been facing challenges (sufficient working place, market access, and support from MSEs Development office) that affect their growth and profitability and hence diminish their ability to contribute effectively to sustainable development.