The impact of

Entrepreneurial Marketing
on Performance of SMEs
Name
Roll no.

Khurram Khalid
46

Introduction
Back ground
After the independence, Pakistan government was mainly focused to
facilitate the large scale of industries which is cause to ignore the
small and medium enterprise till 1980s. SMEs one of the most
important sources which can boost and stable of economy.(Haque,
2007). In developing country like Pakistan, ministry of information,
industrial production initiated to establish the small and medium
enterprise development authority to facility the SMEs. Small and
medium enterprises has been known as overall worldwide. SMEs
working within the limit so as turnover for this context SMEs also
focused by the individual more than the large scale companies.

Scope of study
This study highlighted the role played by Entrepreneurial
Orientation and Marketing Orientation in relation to
Entrepreneurial Marketing as a way to achieve higher
performance. It could be of interest to investigate the sources
of Entrepreneurial Marketing within SME in order to define the
specific management style that would foster the development
of a companys high performance.

Problem statement

Hypothesis
H01:

There is a significant association between entrepreneurial orientation and

entrepreneurial marketing.

H02:

There is a significant association between marketing orientation and

entrepreneurial marketing.

H03:

There is a significant association between entrepreneurial marketing and nonfinancial performance.

H04:

There is a significant association between entrepreneurial and marketing

orientation with non-financial performance by mediating role of entrepreneurial

Literature review

Entrepreneurial marketing incorporates the need for creative approaches

to customer acquisition, retention, and development. Moving estimates of
value and customer equity guide decisions regarding customer investment
and customization levels (Morris et al., 2002:7).
Entrepreneurial marketers develop a creative capacity for resource
leveraging. The ability to recognize a resource not being used optimally,
see how the resource could be used in a non-conventional way, and
convince those that control the resource to let the marketer use it involves
insight, experience, and skill. The same can be said for the ability to get
team members to work extra hours, convince departments to perform
activities they normally do not perform, or put together unique sets of
resources that, when blended, are synergistic (Morris et al., 2002:8).

The focal point of marketing has historically been the

transaction, and more recently, the relationship. The
focal point of entrepreneurial marketing is innovative
value creation, on the assumption that value creation is a
prerequisite for transactions and relationships. The task
of the marketer is to discover untapped sources of
customer value and to create unique combinations of
resources to produce value. In dynamic markets, the
value equation is continually redefined. The ongoing
responsibility of the marketer is to explore each
marketing mix element in a search for new sources of

According to Bjerke and Hultman (2002), entrepreneurial

marketing is the marketing of small firms growing
through entrepreneurship. As SMEs face some limitations
such as having few major customers, limited resource in
business and marketing; the influence of the
entrepreneur, the lack of formal organizational structures
or formal systems of communication (Jones and Rowley,
2011; Kolabi et al., 2011), entrepreneurial marketing
becomes more appropriate to small and medium size
enterprises.

Theoretical Framework
Independen
t

Entrepreneu
rial
orientation

Marketing
orientation

Mediating

Dependent

Entrepreneu
rial
Marketing

NonFinancial
Performanc
e

Methodology
This study related to the area of market orientation, entrepreneurial
orientation and entrepreneurial marketing to test the impact on non
financial performance of an organization by using the survey instrument.
In this research utilised different techniques to test the hypothesis
developed in this study in order to find out the impact of entrepreneurial
marketing on no financial performance of organizations of SME sector in
Pakistan. This research is organised in five sections: (a) description of
sampling, (b) instrumentation, (c) instrument validity and reliability, (e)
data collection and (f) data analysis techniques.

Analytical methodology
PCA
Constructs

Valid N

Number of

Cronbachs

144

Items
5

alpha
0.925

Market

148

0.905

orientation
Enterpreneural

143

0.916

144

0.747

Enterpreneural
Orientation

Marketing
Non financial
performance

KMO and Bartletts Test

Constructs

No. of items

KMO measure of Bartletts Testof

Bartletts test

sample

sphericity Chi-

of sphericity

adequacy

square

sig

EO

0.870

546.496

0.000

MO

0.861

473.711

0.000

EM

0.864

766.930

0.000

NFP

0.726

132.579

0.000

Direct effect of Enterpreneural orientation and Market orientation on

Non financial performance
Independent variable

Dependent variable

Non financial performance

Enterpreneural Orientation

0.748
(13.130)

Marketing Orientation

0.784
(14.921)

Results and Conclusion

Through this study we conclude that Enterpreneurial Marketing has
different aspects which directly or indirectly effect our dependent
variable which is Non financial performance. From these aspects we
selected two most important points, one of them is Entrepreneurial
Orientation which has positive effect on Enterpreneurial Marketing
and Non financial performance during in regression analysis. Second
important aspect is Marketing Orientation which also showed positive
impact on mediating variable and dependent variable which means
all our independent variables have significant impact on dependent
variable in positive way.

Implication

SMEs are base of any growing economy as mostly business starts from
small size and gradually it grows. To get initial growth in business we
generally implement some strategies which address all aspects of
business especially marketing. Marketing is of crucial importance for the
success or failure of an enterprise, as its success is ultimately decided in
the market, competing for the target customers. Application of
entrepreneurial marketing of an enterprise impacts its overall business
performance in the context of launching new products focusing,
segmentation of target groups, communication to potential customers
regarding product or service offers and marketing activities of small
companies with limited access to resources. Entrepreneurial Marketing
based on the entrepreneurs visionary and creative marketing ideas.

Characteristics of Entrepreneurial Marketing

Pro-activeness
Calculated risk-taking
Innovativeness
Opportunity focus
Resource leveraging
Customer intensity
Value creation
In future entrepreneurial marketing will grab more attention of enterprises for its
opportunist approach. The growing trend towards innovation is establishing the
importance of entrepreneurial marketing. Application of entrepreneurial marketing in
multinational companies due to its authentication and affordable aspect is showing
its growing trend.