Entrepreneurial ecosystem pillars and performance of SMEs in the manufacturing sector of Uganda

Abstract

Purpose – The purpose of this paper was to determine which entrepreneurial ecosystem pillars matter most in enhancing the performance of SMEs in the manufacturing sector of Uganda. Design/methodology/approach – Descriptive cross-sectional survey of 310 SMEs in manufacturing sector were sampled. Stratified and simple random sampling techniques were employed because of the population’s homogenous characteristics. Data was collected using a Self-Administered Questionnaire and analyzed using SPSS and AMOS version 23. Findings – The results indicate both institutional arrangements and resource endowments significantly influence performance of small and medium enterprises (SMEs) in the manufacturing sector of Uganda. However, institutional arrangements have a stronger predictive power on performance of SMEs in the manufacturing sector of Uganda as compared to resource endowments. Research limitations/implications – The data was cross-sectional in nature thus limiting monitoring changes in the performance of SMEs in the manufacturing sector over a long period of time. Besides, the study concentrated on SMEs in the manufacturing sector which is just subset of the industrial sector leaving other sectors like trade and services. Originality/value – An empirical study on entrepreneurial ecosystem pillars in a strategic and important sector – SMEs manufacturing sector, at a micro-level, and being done in Uganda is a contribution to existing literature. This is because, most entrepreneurial ecosystem studies are largely conceptual and are normally done at macro and meso-levels targeting SMEs generally and mostly in developed countries which have completely different business environment compared with developing countries.

Keywords

• Entrepreneurial ecosystem pillars
• Institutional arrangements
• Resource endowments
• Performance
• Manufacturing and SMEs