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While entrepreneurial SMEs are known to explore their strategic options for acquiring the resources necessary for achieving competitiveness, relatively little research exists on how their entrepreneurial orientation affects the formation of strategic alliances. Using a unidimensional perspective of entrepreneurial orientation conceptualised by Covin and Slevin (1989), this study aims to determine how it affects the alliance formation tendencies of SMEs. Utilising a sample of 127 SMEs from the manufacturing sector in Goa, the study finds that entrepreneurial orientation positively affects alliance formation tendencies. Furthermore, size of the SME was also found to affect its alliance formation tendencies.