Entrepreneurial orientation and small and medium entreprises profitabiliy in Ghana

This study examined the relationship between Entrepreneurial Orientation (EO) dimensions (risk-taking, innovativeness, proactiveness) and profitability of Small and Medium Enterprises (SMEs) in Ghana. The study adapted Covin and Slevin's entrepreneurial orientation scale to collect data from Micro Small and Medium Enterprises (SMEs) owner-managers operating in the handicraft, manufacturing sector in Accra, Ghana. 200 SMEs were randomly selected for the study. Only 150 SMEs owner-managers completed the questionnaires. The authors employed a quantitative research approach to analyse resultant data using descriptive statistics and OLS regression. The study found that SME owner-managers ‘proactiveness and innovativeness were positively and significantly related to profitability. However, we observe that risktaking ability of an entrepreneur does not foster profitability. The implication for the findings and suggestions for future studies as well as recommendations for SME owners are discussed