Abstract
The study focused on the relationship between transformational leadership and entrepreneurial orientation. There were 325 respondents representing either the owner or top manager of SME establishments operating in manufacturing or services industry involved in this study. A cross-sectional survey and structured questionnaire were used for data collection. A quantitative survey was designed using self-administrative questionnaire. Based on the findings, transformational leadership and all of its factors are having a significant positive correlation with entrepreneurial orientation. Also, it was found that inspirational motivation and intellectual stimulation of transformational leadership contribute significantly towards entrepreneurial orientation.