Entrepreneurial Management as a Predictor of Business Performance in the Greater Accra Region, Ghana

Abstract

Objective: This study used the Behavioural theory of entrepreneurship as the theoretical foundation, and correlation research design to examine the impact of the entrepreneurial management practices (strategic orientation, resource orientation, management structure, reward philosophy, growth orientation, and entrepreneurial culture) on business performance in Ghana. Research Design & Methods: 500 businesses in the Greater Accra Region were selected for the data analysis. Descriptive statistics and hierarchical multiple regression were used to analyse the data. Findings: After controlling the business profile, the result showed that four out of the six entrepreneurial management practices – resource orientation, strategic orientation, reward philosophy, and entrepreneurial culture significantly predicted business performance. However, growth orientation and management structure did not. Implications & Recommendations: The study concludes that entrepreneurial management practices improve business performance in Ghana. The researcher recommends that approaching the study with a mixed-method will help provide a holistic understanding of the management decision-making of the entrepreneurs and its impact on their business performance. Contribution & Value Added: This study contributes to the entrepreneurial management literature in Ghana.

Business Characteristics and Entrepreneurial Management Practices of Small and Medium Enterprises in Ghana

“…The opportunities are future circumstances that are valuable, feasible, and worth exploiting. It is worth noting that opportunities in the entrepreneurship context are relative because what one may consider as worth exploiting for business, another person will consider as inimical for business due to individual differences in beliefs and capabilities (Naldi et al, 2015;Nti, 2022;Steiber & Alänge, 2016;Stevenson & Jarillo, 1990).…”

“…The propensity of exploitative baheviours is measured along a promoter-trustee continuum (Bradley et al, 2011;Stevenson & Howard, 2006). Entrepreneurs who are promoters exhibit confidence in their ability to seize and pursue business opportunities regardless of their controlled resources while the trustee entrepreneurs focus on the efficient utilisation of their company's current resources (Bradley et al, 2011;Nti, 2022;Steiber & Alänge, 2016). Beneath the promoter and trustee spectrum are the two management mindsets, namely: entrepreneurial and administrative behaviours (Nti, 2022;Steiber & Alänge, 2016;Stevenson & Howard, 2006).…”

“…Entrepreneurs who are promoters exhibit confidence in their ability to seize and pursue business opportunities regardless of their controlled resources while the trustee entrepreneurs focus on the efficient utilisation of their company's current resources (Bradley et al, 2011;Nti, 2022;Steiber & Alänge, 2016). Beneath the promoter and trustee spectrum are the two management mindsets, namely: entrepreneurial and administrative behaviours (Nti, 2022;Steiber & Alänge, 2016;Stevenson & Howard, 2006). Promoters exhibit an entrepreneurial mindset while trustees demonstrate an administrative mindset in their business decisions (Bradley et al, 2011;Mahmood et al, 2016;Steiber & Alänge, 2016).…”

“…Studies have employed the behaviour theory of entrepreneurship to study the management practices of SMEs with inconclusive findings from the LMICs (Bradley et al, 2011;Lashley & Lee-Ross D, 2009;Mahmood et al, 2016;Nti, 2022;Steiber & Alänge, 2016). For instance, SMEs in Sub-Saharan African countries such as Kenya prefer a rigid management structure relative to an entrepreneurial structure.…”