Entrepreneurial ecosystem pillars and performance of SMEs in the manufacturing sector of Uganda

Purpose The purpose of this paper was to determine which entrepreneurial ecosystem pillars matter most in enhancing the performance of SMEs in the manufacturing sector of Uganda. Design/methodology/approach Descriptive cross-sectional survey of 310 SMEs in manufacturing sector were sampled. Stratified and simple random sampling techniques were employed because of the population’s homogenous characteristics. Data was collected using a Self-Administered Questionnaire and analyzed using SPSS and AMOS version 23. Findings The results indicate both institutional arrangements and resource endowments significantly influence performance of small and medium enterprises (SMEs) in the manufacturing sector of Uganda. However, institutional arrangements have a stronger predictive power on performance of SMEs in the manufacturing sector of Uganda as compared to resource endowments. Research limitations/implications The data was cross-sectional in nature thus limiting monitoring changes in the performance of SMEs in the manufacturing sector over a long period of time. Besides, the study concentrated on SMEs in the manufacturing sector which is just subset of the industrial sector leaving other sectors like trade and services. Originality/value An empirical study on entrepreneurial ecosystem pillars in a strategic and important sector – SMEs manufacturing sector, at a micro-level, and being done in Uganda is a contribution to existing literature. This is because, most entrepreneurial ecosystem studies are largely conceptual and are normally done at macro and meso-levels targeting SMEs generally and mostly in developed countries which have completely different business environment compared with developing countries.