Entrepreneurial Orientation (EO) has been widely studied in entrepreneurship research, and a recent meta-analysis confirms that EO is a substantial predictor of firm performance (Rauch, Wiklund, Lumpkin, & Frese, 2009). Yet the relationship between the EO and the performance is more complex than a simple direct relationship (Lumpkin and Dess, 1996). In this study, we examine the degree to which governance structures in small firms moderate the effectiveness of EO. We argue that the governance can impact the way that strategic intent such as EO is translated into managerial decisions, and ultimately firm performance. Specifically, we study the family/nonfamily composition of both board and top management team (TMT).