How Do Entrepreneur Orientation and Barriers Impact Innovation and Business Performance? Perspectives from Services MSMEs

Abstract

The article focuses on how entrepreneurial orientation and barriers affect MSMEs' innovation and business performance in the seventeen MSME services sectors in Uttar Pradesh. The data are collected from 17 MSMEs' services from 355 respondents using a structured questionnaire. The software SmartPLS 4 was used for data analysis and hypothesis testing. The study's conclusions demonstrate that one dimension—the human resource-related barrier—showed an insignificant effect on innovation. In contrast, the other two dimensions, entrepreneurial-related, and finance-related barriers, proved significant association. All the dimensions of entrepreneur orientation that is, proactiveness, risk-taking, and innovation exhibit a notable impact on business performance. Lastly, this study offers some policy recommendations for emerging economy businesses and decision-makers.