THE EFFECT OF ENTREPRENEURIAL ORIENTATION ON SMALL AND MEDIUM BUSINESS PERFORMANCE IN MEDAN CITY

Authors

DOI:

https://doi.org/10.29040/ijebar.v5i1.2055

Abstract

Innovation, being proactive, and risk-taking are dimensions of entrepreneurial orientation. The useful application of entrepreneurial orientation aims to improve business performance. This is due to the increasing level of business competition, which requires owners to implement strategies that encourage business excellence. This study aims to examine the impact of innovation, be proactive, and take risks on small and medium enterprises' performance. The research sample, 55 small and medium entrepreneurs who eat fried rice and Padang satay in Medan City. Data analysis, using SPSS 22.00 to test factor analysis (EFA) between variables. A regression test was carried out in the analysis of the proposed hypothesis. The results showed that the innovation variable had a positive and significant effect on performance with a value of β. 640 and significant .000 ≤ 0.05. The proactive variable has a positive and significant effect on performance with a value of β .483 and a significant .003 ≤ .05. However, hypothesis testing results show that the variable taking risks has no effect on performance with a value of β -.249 and is significant .200 > .05.

Author Biographies

Dewi SUMA, Universitas Pembinaan Masyarakat Indonesia

Faculty of Economics, Department Management

Budi Alamsyah Siregar BUDI, Universitas Pembinaan Masyarakat Indonesia

Faculty of Economics, Department Management

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Published

2021-03-23

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SUMA, D., & Siregar BUDI, B. A. (2021). THE EFFECT OF ENTREPRENEURIAL ORIENTATION ON SMALL AND MEDIUM BUSINESS PERFORMANCE IN MEDAN CITY. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(1), 194–202. https://doi.org/10.29040/ijebar.v5i1.2055

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Vol. 5 No. 1 (2021): IJEBAR, VOL. 5, ISSUE 01, MARCH 2021

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