Business innovation and high-growth entrepreneurship in small and growing businesses in Uganda: A developing country’s perspective

Abstract

Orientation: Limited evidence exists on how business innovation influences high-growth entrepreneurship among small and growing businesses (SGBs) in developing economies such as Uganda.
Research purpose: This study examined the effect of business innovation on high-growth entrepreneurship in SGBs in Uganda.
Motivation for the study: Uganda’s SGBs face stunted growth because of poor business innovation, compelling entrepreneurs and managers to make decisions that adversely affect business growth.
Research design, approach and method: Following a positivist research paradigm, a correlational research design and a quantitative research approach were employed. From a population of trade (388 179), manufacturing (30 568), service (232 981) and real estate (14 319) businesses, a sample of 376 respondents, constituting business owners (191), managers (91), owner managers (67), CEOs (19) and others (8) was drawn using simple random sampling technique. The data were collected using structured questionnaires, entered into Excel and analysed for descriptive, inferential statistics, correlation and regression using STATISTICA V12.
Main findings: Regression analysis results show that business innovation explained 16.3% of the variance in high-growth entrepreneurship, with product innovation (β = 0.231, t = 4.200, p < 0.001) and market innovation (β = 0.211, t = 3.772, p < 0.001) emerging as significant predictors, while process innovation (β = 0.052, t = 0.962, p = 0.337) had the weakest effect.
Practical/managerial implications: Businesses should explore new markets, improve processes and develop new products to drive growth.
Contribution/value-add: The study provides evidence on the influence of business innovation on high-growth entrepreneurship in SGBs, offering insights for entrepreneurs to enhance business growth.