Entrepreneurial orientation and entrepreneurial competency of SME’s

Small and medium enterprises (SMEs) proved able to contribute to the economy that is the ability to absorb labor and contribution to Gross Domestic Procuct (GDP). But the growth of SMEs still faces problems, including market access, market information, market expansion, diversification, and innovation. To overcome the problems of SMEs, need to be studied the role of individual factors as business actors include the competence and entrepreneurship orientation. The purpose of this research is to analyze the role of individual factors, namely entrepreneurship competence and entrepreneurship orientation toward SMEs performance. This advanced research is developed with a focus on entrepreneurial competence as an antecedent of the entrepreneurial orientation and its effect on the performance of SMEs. Using explanatory research approach, the study was conducted on 80 SMEs in Malang City, Indonesia. The analysis is done with Path Analysis to test the direct and indirect influence between the variables on the performance of SMEs. The results showed entrepreneurial competence as a mediating variable of influence of entrepreneurial orientation on the performance of SMEs. The results of this study indicate that the entrepreneurial orientation can be achieved if the entrepreneur has entrepreneurial competenc