The Effect of Entrepreneurial Marketing on SME Performance: Special Reference in Food Manufacturing Sector in Western Province, Sri Lanka

Abstract

Entrepreneurial marketing, a combination of unconventional marketing strategies and entrepreneurial spirit, plays a crucial role in the success of small and medium-sized enterprises operating in uncertain environments. In Sri Lanka, Small and Medium Enterprises, particularly, in the food manufacturing sector play a significant role in economic development and income growth. This research examines the effect of entrepreneurial marketing on the performance of SMEs in the food manufacturing sector in the western province of Sri Lanka. While exploring entrepreneurial marketing effect on performance, previous research has yielded mixed results on its dimensions and lacked focus on Sri Lankan SMEs in the western province. The research focuses on seven dimensions of entrepreneurial marketing: proactiveness, calculated risk-taking, innovativeness, opportunity focus, resource leveraging, customer intensity, and value creation. By examining the effect of entrepreneurial marketing on SME performance, the study aims to contribute valuable insights to a field that has seen limited empirical research, particularly in the food manufacturing sector in the western province of Sri Lanka. Data was collected from 79 respondents using a cross-sectional design and a non-probability convenient sampling technique. The questionnaire, grounded in a literature review and expert opinions, featured closed-ended questions to facilitate quantitative data collection. Analysis revealed that proactiveness, opportunity focus, customer intensity, and resource leveraging exert a positive effect on SME performance. However, calculated risk-taking, innovativeness, and value creation showed no significant effect on SME performance. Despite these findings, the research provides valuable insights for business owners and managers, offering recommendations for informed decision-making in marketing campaigns. The study also serves as a foundation for further research, urging scholars to delve deeper into the nuanced relationship between entrepreneurial marketing and SME performance. Students can benefit from this study by gaining knowledge and ideas about entrepreneurial marketing in the dynamic context of small and medium-sized enterprises in the food manufacturing sector in Sri Lanka.