Authors : H. K. G. S. Ranasinghe; B. A. D. L. Dharmasena

Volume/Issue : Volume 11 - 2026, Issue 5 - May

Google Scholar : https://tinyurl.com/5n86x6tm

Scribd : https://tinyurl.com/ye2yspkk

DOI : https://doi.org/10.38124/ijisrt/26May1797

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Abstract : Small and medium-sized enterprises are essential to the global economy because they generate employment, drive innovation, support inclusive growth, and contribute significantly to Gross Domestic Product and local community development worldwide. However, such startup enterprises face high early failure rates, limiting their contribution to regional economic growth and long-term sustainability. This study examines how entrepreneurial orientation influences business performance by analyzing six of its dimensions. Based on the Theoretical views, the study adopts a quantitative approach, collecting data from 396 startup enterprises of this category through structured questionnaires. Descriptive statistics and inferential statistics were conducted to assess the effect of each of these dimensions on financial and non-financial performance indicators on business performance. The results reveal that proactivity and innovativeness significantly enhance business performance, while risktaking has a conditional effect that is shaped by market stability and resource constraints. Competitive aggressiveness and entrepreneurship desire show strong positive contributions, whereas autonomy presents a negative but significant influence. Overall, the findings highlight entrepreneurial orientation as a strategic behavioral construct that enhances the sustainability, competitiveness, and advancement probability of startup enterprises. The study provides practical implications for entrepreneurs, policy developers, and support agencies seeking to strengthen the resilience of these firms and economic development.

Keywords : Business Performance, Entrepreneurial Orientation, Entrepreneurship Desire, Innovativeness, Pro-activeness, Risk-taking, Startup SMEs, Western Province.

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