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VOL. 2, ISSUE 1 (2026)
Effect of entrepreneurial orientation on startup growth under economic uncertainty
Authors
Dr. Budi Hartono
Abstract

Background: Startups operate in inherently precarious environments, which are further exacerbated by macroeconomic uncertainty. Entrepreneurial Orientation (EO) characterized by innovativeness, proactiveness, and risk-taking is widely theorized to drive firm growth, but its efficacy during economic downturns remains contested.

Objective: This study examines the direct effect of Entrepreneurial Orientation on startup growth and investigates the moderating role of perceived economic uncertainty on this relationship.

Method: This study uses a simulated dataset created for academic training purposes. Survey data simulating 300 startup founders was generated. Moderated hierarchical regression analysis was conducted using the SPSS PROCESS macro.

Key Results: EO positively and significantly influenced startup revenue growth (β = 0.38, p < 0.001). However, economic uncertainty negatively moderated this relationship (β = -0.21, p < 0.01), indicating that the growth benefits of EO diminish as environmental unpredictability increases.

Conclusion: While an entrepreneurial mindset is beneficial for startups, extreme economic uncertainty acts as a constraint, suggesting that founders must pivot from aggressive risk-taking to strategic flexibility during turbulent periods.
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Pages:15-18
How to cite this article:
Dr. Budi Hartono "Effect of entrepreneurial orientation on startup growth under economic uncertainty". World Journal of Management and Commerce, Vol 2, Issue 1, 2026, Pages 15-18
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