Abstract:
Small and Medium Enterprises are seen as firms that contribute to the national economy and are even the dominant type of enterprise in Malaysia. However, human capital and entrepreneurial orientation are often linked to SME performance issues. Specifically, this study aims to determine the effect of entrepreneurial orientation as a mediator on the relationship between human capital and SME performance. Research data was obtained from 200 questionnaires and analysed using regression analysis. The results of the study found that entrepreneurial orientation acts as a mediator in the relationship between human capital and firm performance. Therefore, SME entrepreneurs need to be given appropriate guidance to improve their entrepreneurial orientation. Through appropriate and effective training from the parties involved, SMEs can provide innovative, creative and proactive human capital in the face of business competition. The parties involved need to work together to provide effective training for that purpose.
