EFFECT OF ENTREPRENEURIAL ORIENTATION ON BUSINESS PERFORMANCE

The study seeks to make contribution to literature on a conceptual model of effect of entrepreneurial orientation on business performance and provide empirical evidence of the importance of entrepreneurial orientation in achieving superior business performance. The study was conducted with respondents of embroidery SMEs in Kudus Regency. Sample of the study was 153 respondents. Sample was taken by using purposive sampling. Results of statistical analysis of the research model on each hypothesis found that first, innovative entrepreneurial orientation had a significant effect on business performance; second, a proactive entrepreneurial orientation had no significant effect on business performance and; third, risk-taking entrepreneurial orientation significantly affected business performance