Read the case study below and answer the questions that follow. Micro2Medium Inc. is a not-for-profit organization that provides capacity-building support to Micro, Small, and Medium-sized Enterprises (MSMEs) across the Southern Africa Development Community (SADC). Micro2Mediums mission is to build the capacity of MSMEs in order to contribute to economic growth and prosperity, increase resilience and stimulate job creation. Due to increased demand for its services, Micro2Medium Inc. is contemplating a strategic shift with the aim of prioritizing the provision of evidence-driven support for MSMEs. The operations director, Ms. Thobeka Melane, is spearheading Micro2Mediums operational plan which is premised on sharpening entrepreneurial behaviors that predict business performance across the SADC region. She believes that building the capacity of MSMEs and nudging firms within the MSME space towards better business practices is important for improved business performance and enhanced contribution to economic growth across SADC. In this regard, she has hypothesized that entrepreneurial orientations of MSMEs correlate with business performance. Mr. Phumlani Vilakazi, a business researcher at Micro2Medium Inc., has been tasked with conducting an analysis of entrepreneurial orientations and business performance of MSMEs across five (5) SADC countries, namely South Africa, Namibia, DR Congo, Zimbabwe, and Tanzania. He has decided to focus the investigation on key provinces and regions with high concentrations of MSMEs within each of the 5 countries and has randomly selected MSMEs from the selected provinces and regions for the study (see Table 3.1). Due to ongoing working relationships with many of the MSMEs, Mr. Vilakazi estimates a 50% response rate for the survey instrument.

The 4 objectives of Mr Vilakazis investigation are: 1 To determine whether the entrepreneurial orientations of MSMEs differ significantly across the 5 countries studied 2 To investigate whether the business performance of MSMEs differ across the 5 countries and

3. To examine if entrepreneurial orientation is a significant predictor of business performance of MSMEs across the 5 countries. 4 . To draw conclusions from the empirical study and offer practical recommendations on how to enhance the performance of MSMEs within SADC.

To measure the firm entrepreneurial orientation (EO) construct, Mr. Vilakazi identified 5 salient dimensions from a review and integration of the strategy and entrepreneurship literature: innovativeness, proactiveness, risk-taking, competitive aggressiveness, and autonomy (Wiklund & Shepherd, 2003 Covin, Greene, & Slevin, 2006 Tang, Tang and Cowden 2017 Urbig, Stckmann, Marino, and Dickson, 2016). Following Covin and Slevin (1989), he measured the EO of the firm through the top management team (TMT) of each of the firms surveyed. EO was measured at the interval level. The business performance (BP) construct was measured using the Balanced Scorecard (Kaplan & Norton, 1996), which encapsulates both financial and non-financial performance variables, as well as business growth variables which were measured by the change in turnover, increase in the number of employees, increase in the enterprises assets and profit (Mabhungu, 2017). BP was measured at the ratio level.

3.1 State the aim of, and motivation for, Mr. Vilakazis study and formulate a set of null and alternative hypotheses for each one of the first three research (10 Marks) 3.2. Specify an inferential test for each of the three sets of hypotheses formulated in question 3.1 taking into consideration the assumptions of parametric tests. (5 Marks)

Table 3.1: Data on Micro, Small and Medium-sized Enterprises in selected countries in SADC Country South Africa Namibia DR Congo Zimbabwe Tanzania 6 million 50 000 7 million 2.5 million 5 million Estimated no. of MSMEs Actual sample size 800 700 800 800 800 Provinces surveyed Gauteng, Khomas, Kinshasa, Harare province, Dar es Salaam, Western Cape, Oshana, Haut-Katanga, Bulawayo prov., Mwanza, KZN Ohangwena, Omusati Kongo Central, Midlands prov. Mbeya, North West Kasa-Oriental Mash. East Shinyanga