Elevating SMEs Performance through Entrepreneurial Innovation and Government Regulations in Bujumbura, Burundi
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Date
2023
Authors
Muathe, Stephen Makau
Dushime, Eunice
Kavindah, Lucy
Journal Title
Journal ISSN
Volume Title
Publisher
IJRISS
Abstract
In most developing countries including Burundi Small and Medium Enterprises are major players in growth
of the economies. In Burundi they accelerate growth towards achieving Burundi’s vision 2025 by offering
job opportunities, generating revenue for the government, reducing poverty and income inequality. However,
they experience poor performance as indicated by reduced revenue turnover by 44.6 percent in 2014 to 2018.
The focus of this study was to investigate the moderating effect of government regulation on the relationship
between entrepreneurial innovation and the performance of small and medium enterprises in Bujumbura,
Burundi. Resource-based view and dynamic capability theory guided the study, this was supported by
Schumpeter’s theory of entrepreneurship and innovation. An explanatory research design was used to test the
causal effect of the study variables. A sample size of 164 SMEs was selected from the target population of 279
SMEs in Bujumbura, data was analysed using multiple linear regression. The study found out that government
regulations negatively and significantly moderate the relationship between entrepreneurial innovation and
performance. Thus, the Government through the ministry of industry andtrade of Burundi should create
a good environment for SMEs to thrive by lowering license costs and thetime taken to issue a license in
order to create a better business climate for SMEs to flourish.
Description
Article
Keywords
Entrepreneurial Innovation, Performance, Government Regulations, SMEs, Resource-BasedView Theory, Dynamic Capability Theory, Schumpeter’s theory, Burundi
Citation
Muathe, S. M., Dushime, E., & Kavindah, L. Elevating SMEs Performance through Entrepreneurial Innovation and Government Regulations in Bujumbura, Burundi.