Abstract:
Entrepreneurship is recognized as one of the most powerful economic weapons in any developing
country. Sri Lanka, has recognized the Tourism Sector as one of the most pressing business sector which
can have multiplier effect on local community. Tourism is considered as one of the main foreign exchange
earning source of any country and it is a significant contributor to the social and economic development of
the country. The succession of any firm depends on the entrepreneurial behavior of the business (Lumpkin
and Dess, 1996). The main focus of this study was to identify the impact of entrepreneurial orientation on
firms’ performance of tourism enterprises. Galle, Matara and Hambanthota districts (Southern province,
Sri Lanka) have been selected as the research site of this study. As the study population, the researcher
has selected the tourism entrepreneurs who were registered at the Chamber of Commerce and Industries
of Matara, Galle and Hambanthota districts. Out of the total population, 120 tourism entrepreneurs were
selected for the sample using systematic probability sampling technique. Self administered questionnaire was
used to collect primary data and secondary data sources were also used. Pearson correlation and regression
analysis were applied to analyze the data. The study reveals, there is small to medium relationship between
entrepreneurial orientation and tourism entrepreneurial performance (r=0.312). Risk taking, innovativeness,
proactiveness and competitive aggressiveness are the key factors which affect entrepreneurial performance
whereas autonomy has very little role. The study identified the necessity of introducing awareness and
stimulation programs towards entrepreneurship for the youth groups. Facilitating entrepreneurs with
financial and non-financial resources would stimulate them towards entrepreneurial activities. Creating
linkages between local tourism and local goods manufactures will benefit local community. The government
needs to create a legal platform to protect local small and medium scale Tourism Entrepreneurs from large
scale direct investments.
