But with hard work of owners, the production process can run, though with relatively slow development due to various obstacle and limited company's individual abilities, particularly with regard to entrepreneurial orientation. For example, they did not get funding, even with a relatively small capital. Reality shows that majority of small and medium enterprises sector in Republica Democratica de Timor-Leste (Timor Leste) State has not been addressed seriously by government. It should be well understood that small firms play an important role in economic development of a country (Moeljadi, 2000). Economists argue that small and medium enterprise sector has proven their durability in various economic conditions and able to withstand from various conditions of competition with big business. People's economy is based on fair market mechanism with principles of fair competition and can boost economic growth. Small and medium enterprises (SMEs) have function to help government to move economy to develop economic in Republica Democratica de Timor-Leste (Timor Leste) State. KEYWORDS: Entrepreneurship Orientation, government policy, Business Performance. It shows that government policy does not have direct effect and moderating effect to improve SMEs performance. Government policy can not moderate effect of entrepreneurial orientation on business performance. It means better entrepreneurial orientation can improve performance of small and medium enterprises. Study result shows that entrepreneurial orientation affect on on business performance.
Data Analysis Techniques is Generalized Structured Component Analysis (GSCA). There are 157 questionnaires collected with response rate is 57.1%. This study populations are 275 SMEs from three districts (Dili, Baucau and Maliana) in Republica Democratica de Timor-Leste (Timor Leste) State.
This research was conducted at capital city of Dili, Baucau and Maliana District outside 13 districts in Timor Leste.
Volume 3 Issue 8 ǁ August 2014 ǁ PP.64-71Įffect of Entrepreneurial orientation on business performance moderated by Government Policy (Study On SMEs In Timor Leste ) Augusto da Conceição Soares 1, Moeljadi2, Fatchur Rohman2, Solimun3 1(Doctoral Program of Management Sciences, Economics and Business Faculty, Brawijaya University,Indonesia) 2(Economics and Business Faculty, Brawijaya University, Indonesia) 3(Basic Science Faculty of Brawijaya University, Indonesia) ABSTRACT: This study purpose is to analyze and explaining effect of entrepreneurial orientation on business performance with government policy as a moderating variable. International Journal of Business and Management Invention Effect of Entrepreneurial orientation on business performance moderated by Government Policy (Study On Sme In Timor Leste )
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