Entrepreneurial Orientation and Firm Performance in SMEs. A preliminary stydy

Small and medium-sized family businesses are strongly influenced in their ability to survive, achieve profitability, and stimulate growth by the leader of the firm. His/her entrepreneurial capacity gives these firms a foundation for building and exploiting these abilities. Applying a definition of Entrepreneurial Orientation (EO) associated to the competences of the entrepreneurs to a sample of 40 family SMEs, this study highlights the relationship between EO and firm performance in family SME’s context. Our research shows which components of EO mainly affects perceived and archival performance (risk taking and proactiveness) and which are the contingent organizational variables that affect the shape of the EO (perceived performance and gender). Consistent with this focus, we also emphasize the differences in terms of EO considering various characteristics of family SMEs. These results urge SMEs to capitalize on the skills and talents of their family members in promoting entrepreneurship and selective venturing into new market arenas.