Strategic entrepreneurship and SME growth in emerging economies: a multidimensional PLS-SEM study from Tamil Nadu

Abstract

Small and Medium Enterprises are critical drivers of employment, innovation, and economic development in emerging economies; however, sustaining growth remains challenging due to resource constraints, market uncertainty, and institutional limitations. Although strategic entrepreneurship received increasing scholarly attention, existing studies have largely examined entrepreneurial dimensions in isolation, providing limited evidence regarding their combined influence on SME growth. Drawing upon Strategic Entrepreneurship Theory and the Resource-Based View, this study investigates the effects of Innovation, Proactiveness, Risk Taking, Opportunity Recognition, and Strategic Resource Management on SME growth in Tamil Nadu, India. A quantitative cross-sectional research design was adopted, and data were collected from 400 SME owners, founders, and senior managers across manufacturing, retail, and service sectors. The proposed model was analyzed using Partial Least Squares Structural Equation Modeling. The findings reveal that all five dimensions significantly and positively influence SME growth. Among them, Proactiveness and Risk Taking emerged as the strongest predictors, while Innovation and Strategic Resource Management demonstrated meaningful contributions to organizational adaptability and competitiveness. Opportunity Recognition also showed a significant, though comparatively moderate, effect on growth outcomes. The study contributes to strategic entrepreneurship literature by empirically validating a multidimensional framework that integrates entrepreneurial behavioral orientations with resource-based strategic capabilities within an emerging economy context. Findings further extend the applicability of Strategic Entrepreneurship Theory and RBV in explaining SME growth under conditions of uncertainty and resource scarcity. Managerially and policy-wise, the study highlights the importance of proactive strategic behavior, innovation capability, and effective resource orchestration for enhancing SME competitiveness, resilience, and sustainable growth.

The authors' abstract, as published at the source. Cogent Business & Management, 2026 · DOI ↗