Impact of Entrepreneurial Orientation on Small and Medium Enterprises Performance in Botswana.

This article examines the impact of Entrepreneurial Orientation (EO)—comprising innovativeness, proactiveness, risk-taking, autonomy, and competitive aggressiveness—on the performance of small and medium enterprises (SMEs) in Gaborone, Botswana. Using survey data from 368 SME owners/managers and analyzed through Partial Least Square-Structural Equation Modeling (PLS-SEM), the study found that all EO dimensions except risk-taking significantly enhance SME performance. The findings highlight the importance of fostering innovativeness, proactiveness, autonomy, and competitive aggressiveness to improve SME outcomes in a developing economy context, while noting that risk-taking did not show a significant effect, possibly due to low risk tolerance and limited managerial skills among SME owners. The study suggests that targeted entrepreneurial education, training, and supportive government policies could strengthen EO dimensions and thereby contribute to SME sustainability and economic growth in Botswana.