Research On The Relationship Among Entrepreneurial Environment, Entrepreneurial Orientation And Enterprise Performance Of Mongolian SMEs

With the development of market economy, SMEs in the economic developmentof countries is becoming increasingly important. SME development can not onlypromote national economic development, or the promotion of innovation, a majorforce in solving the employment problem. Mongolia’s economy is facing a majortransition period. Its SMEs start very late, and its development basic is weak. Theimprovement of the business environment and the promotion the growth of SMEsbecome more and more important in Mongolia. In recent years, Mongolia enterprisedevelopment faces good conditions. Mongolian labor force increased rapidly.Mongolia has important mineral resources and livestock resources, in addition to theprogressive development of tourism industry. Mongolia has achieved a certain degreeof macroeconomic stability, thus contributing to the development of trade andinvestment, but also promoted the development of private industry. The privateeconomy as the basic economic system in Mongolia important supplement ingredientin the process of economic development is growing into a force to be reckoned with.But from the current situation of enterprise development, small and mediumenterprises in financial difficulties, the small number of township enterprises, thefailure rate is higher, SME innovation is not strong, there are still some obstacles tothe external environment, such as poor infrastructure and so on. SMEs play animportant role in Mongolian, the entrepreneurial environment for SMEs and businessstrategy oriented research is very important.Entrepreneurship for a country or region’s role in promoting economicdevelopment is of great significance, which has become the economic development ofcountries in the world unanimously recognized fact. Entrepreneurial economybecomes the ideal state of the economy in various countries. Entrepreneurship is an important feature in an open, constantly changing environment, looking for newopportunities. It can be seen entrepreneurship is by no means completely independent,it is in constant interaction with the environment, integration and improvementprocess of completion. Although various countries around the world are basically inthe pursuit of entrepreneurial economy, promoting entrepreneurship activities, butdifferent countries and regions, the level of entrepreneurship and economicdevelopment is completely different. Entrepreneurial environment can not only affectthe process of entrepreneurship, entrepreneurship can also affect the final results.Good business environment, whether in the early stages of the preparation phase ormedium-term management and sustainable development of late stage has a veryimportant role for the business growth to provide a lot of benefits and convenience,this will encourage enterprises to seize new opportunities, gain valuable resources,thus contributing to the growth of enterprises. So you can see, entrepreneurialenvironment can affect the process of entrepreneurial activity and ultimately businessresults.Entrepreneurial orientation in entrepreneurship research is an important concept,is simply strategic choice of enterprises as a gesture, companies tend to beconservative is to complete the existing tasks or creative explore new markets.Entrepreneurial orientation can be used to describe the whole process ofentrepreneurship, which is essentially a strategic management from the perspective ofentrepreneurial activity, reflecting how the business should operate issues, includingnot only the newly established enterprises to make strategic choices includealready-developed Enterprises operating in the production process of the corporatestrategy oriented to rethink and change. Entrepreneurship related research areas andstrategic management as well as organization and management theory and practicehave proved that entrepreneurial orientation both for mature companies or newlyestablished enterprise development has a very important impact.Enterprise Performance is pursuing entrepreneurial activities related to theultimate goal. Whether to change the original enterprise production processes, use ofnew technology or the development of new markets, is wanted in the case to reducecosts, increase revenue, improve production efficiency. Entrepreneurial environment and entrepreneurial orientation have an impact on business performance. Goodbusiness environment, companies can get a lot of entrepreneurial behavior throughconcessions and benefits, while the entrepreneurial orientation is reflected in the firmin the face of new opportunities for development, the strategic choice of the tendencyof different strategic options for the business end of the venture is bound Performanceimpact. Therefore, the business environment, between entrepreneurial orientation andbusiness performance are not independent, but interrelated, interaction relationships.Entrepreneurial environment can independently affect Enterprise Performance,entrepreneurial orientation can also be a direct impact on business performance, butbecause of entrepreneurial orientation is not fixed, but also by the impact of thebusiness environment, and therefore in a different business environment under theeffect of entrepreneurial orientation on entrepreneurship influence the performancewill also be presented in different forms, can be said that the business environmentcan affect the performance of venture between entrepreneurial orientation ofinfluence.SME development is the focus of economic development issues in Mongolia.However, the development of SMEs in Mongolia there are so many problems, onevery important issue is inadequate infrastructure, lack of vitality in the developmentof SMEs. This makes the study of Mongolia SME business environment,entrepreneurial orientation and the relationship between Enterprise Performance isvery important.Is a dynamic business environment, and also to some extent with a hostilecharacteristics. This feature will directly affect the performance of start-ups.Mongolia dynamic external environment faced by SMEs is higher, in a changingenvironment will be greater opportunities and risks in the development of enterprisesface many potential opportunities, which would encourage enterprises to seek newdevelopment opportunities, bear the risk of innovation, as is the development of theindustry in a favorable position. There is a certain dynamic environment can promoteenterprises to explore new areas, but if the degree of hostility in the environment istoo high, it will lead to vicious competition among enterprises, some enterprises donot consider innovation to improve their own performance, but consider vicious competition to influence the performance of competitors’ revenues and forentrepreneurial activities to stimulate their own to improve their performance throughthe impact is not obvious. Mongolia’s business environment is not as developed asperfect, conflictual environment too, will guide enterprises to deviate from the currentdevelopment trajectory, affect strategic choices.Entrepreneurial environment hostile not only does not inspire enthusiasmMongolia SME innovation, but also the business entrepreneurs have a negativeimpact on performance. SMEs do not consider changes in enterprise developmentthrough entrepreneurial activity status quo, but the plight of vicious competition isbound to affect the business performance. As for the dynamic nature of theenvironment, combined with the actual business environment in Mongolia, nor toimprove corporate performance have a direct impact. This is because, in a changingenvironment, companies consciously wanted to seize the environment throughinnovation opportunities, but the implementation is poor, does not directly improvethe performance of entrepreneurship have a direct impact.Entrepreneurial orientation is important for Enterprise Performance ofMongolian SMEs. Have a positive entrepreneurial orientation of the enterprise, willbe easier to find potential business opportunities that exist in the market, even in theabsence of these opportunities into performance will be better than the othercompanies in the production of existing products more innovative with initiative and,to a certain extent, or will improve enterprise performance.SME business environment in Mongolia dynamic entrepreneurial orientation andEnterprise Performance on the relationship between regulatory role. Dynamic isstronger, has a positive entrepreneurial-oriented enterprise would be easier in achanging environment seize opportunities, thus contributing to the improvement ofEnterprise Performance. If the lack of a dynamic business environment, companiesare finding potential opportunities even if the tendency is very strong, not easy to findbusiness opportunities in the market in order to improve business performance.Mongolia’s business environment for SMEs has a lot of room for improvement.The Government should actively develop the market economy, improve dynamicenvironment, and encourage enterprises through innovation and entrepreneurial activity greatly improve the enterprise’s business performance. SME entrepreneurs tomobilize the energy and sense of innovation, thus contributing to the overalldevelopment of SMEs in Mongolia increased levels.