THE EFFECT OF ENTREPRENEURIAL ORIENTATION ON PERCEIVED BUSINESS SUCCESS OF SMALL SCALE MANUFACTURING IN ETHIOPIA

This paper aims to address the effect of entrepreneurial orientation dimension variables on the perceived business success in small scale manufacturing enterprises in the text of less developing countries by taking one regional province of Ethiopia that is Amhara regional state. In this study, the explanatory research design was employed that is inclined towards a quantitative approach. Data were gathered from primary sources through a standardized questionnaire from small scale manufacturing enterprises working in the Amhara region. A blend of multi-stage sampling techniques was employed to choose appropriate samples and binary logistic regression analysis was applied for the purpose of data analysis. The study result showed that all five entrepreneurial orientation dimensions (autonomy, innovativeness, pro-activeness, competitive aggressiveness, and risk taking) variables were significant in predicting the odds of perceived business success. However, among those strongest predictors, only three of them (Risk Taking, Pro-activeness, and Competitive Aggressiveness) have the positive impact on the dependent variable, whereas the remaining two variables (Innovation and Autonomy) have a negative impact on the perceived business success of small scale enterprise.