Abstract
“Entrepreneurial orientation” is a term which has been used to indicate the strategies and policies which any organization adopts to execute some entrepreneurial actions. In order to understand the explicit role of entrepreneurial orientation and firm performance within small firms, some interlinked variables are also measured. Therefore the main purpose of the existing empirical research study is to examine the relationship of entrepreneurial orientation with the firm performance by checking the mediating role of transformational leadership style. Data were collected from 165 entrepreneurs who were running their small firms in Pakistan. To test the hypothesis PLS-SEM (Partial least square structural equation modeling) were used by operating smart PLS software. The results indicated that transformational leadership style mediated the relationship between entrepreneurial orientations. Some limitations and future directions has been explained at the end of the existing research.