This paper represents the role of Entrepreneurial Orientation in business performance of handicraft enterprises in Nepal. The study is conducted among the members of Federation of Handicraft Associations of Nepal. Guided by the post-positivistic paradigm, this study examines the effect of five EO dimensions on handicraft business performance. Simple random sample is employed among 397 population and 196 respondents are asked to respond to the survey questionnaire. Out of 178 responded people, only 161 were found usable. The business performance is measured through the three dimensions, namely efficiency, growth, and profit. The descriptive statistics, correlation and regression analysis are used to analyze the data and to infer results. However, business status, respondents’ qualification, national coverage, employment generation, and gender equality seemed good but fertile areas of business were found only in tourist areas of Nepal. The findings of correlation and regression represent that autonomy, risk-taking, and pro-activeness and competitive aggressiveness were positively correlated with business performance. However, innovativeness had no correlation with business performance of handicraft enterprises in Nepal. Further, autonomy and competitive aggressiveness dimensions of entrepreneurial orientation were found only the contributors in handicraft business. The empirical findings of this study recommended that the companies should pay proper attention to expand their business in other States of Nepal as well because Nepal has also other potential areas of tourism. The study also found that the handicraft business is well operated in State 3 and 4 where Kathmandu and Pokhara are situated though they are prominent areas of tourism in Nepal.
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