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http://dx.doi.org/10.13106/jafeb.2021.vol8.no5.0689

Do Risk-Taking, Innovativeness, and Proactivity Affect Business Performance of SMEs? A Case Study in Bangladesh  

RAHAMAN, Md. Atikur (School of Management, Jiujiang University)
LUNA, Kaniz Fatema (DBC News (Dhaka-Bangla Channel))
PING, Zhao Lin (The International Cooperation & Exchange Division, Communications Vocational, and Technical College)
ISLAM, Mohammad Saiyedul (School of International Trade and Economics, Jiangxi University of Finance and Economics)
KARIM, Md. Mobarak (World School of Business, World University of Bangladesh)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.5, 2021 , pp. 689-695 More about this Journal
Abstract
In the current technology-driven era, Small and medium enterprises (SMEs) have been deemed as one of the leading and prominent drivers of sustainable economic progress in emerging and developing economies such as in the Bangladesh context. Hence, it is of significance to understand what might fuel accelerating performance of SME business as increased SME performance will bring about more sustainability and strong development of SME sector within the country, through which more employment is anticipated to be generated. Therefore, the current study examines the impact of three factors: risk-taking, innovativeness, and proactiveness on SME performance in Bangladesh. The study has gathered data from SME entities in Dhaka city of Bangladesh, by applying a non-probability sampling strategy. 250 SME owners were contacted to act as respondents and finally, 180 SME owners fully completed the survey questionnaire, indicating that the final sample size is n=180. SPSS is used as a purpose of testing the hypotheses by considering a 5% significance level as acceptance criteria of the hypothesis. Hierarchical regression analysis was run to understand the impact of control variables and independent variables on SME performance and found that age of business, risk-taking, innovativeness, and proactiveness have an important impact on SME performance in Bangladesh.
Keywords
Risk-taking; SMEs; Performance; Innovativeness; Proactiveness;
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