The Impact of Selected Entrepreneurial Competencies on Smes Performance in Ethekweni Regions of South Africa: Theoretical and Practical Implications

Abstract

Owner-managers of small businesses are in dire need of competent and skillful employees. Besides, owner managers need to acquire specific competencies including personal, opportunity and strategic to sustain the day-to-day operations of firms. This study seeks to determine the impact of the three competencies to understand their impact on small business performance. The study put forward the argument that opportunity, personal and strategic competencies impact on SMEs performance. To evaluate the impact of the three variables of exogenous and endogenous on SMEs performance, three hypotheses were formulated. Empirical data was collected from 248 owner-managers of SMEs chosen from database through the Durban Chambers of Commerce and Industry (DCCI). For two weeks, the authors used the DCCI as the empirical context for the study where data was sourced. Being quantitative study, a self-designed 5-point Likert-scale questionnaire was applied to solicit empirical data. The outcomes of the study showed that entrepreneurial competencies such as personal, opportunity and strategic are crucial for small business performance. The findings also provide rich insights to some of the reasons for the rampant small business failures country-wide including eThekweni regions of South Africa. Further, the study unearths useful implications for owner-mangers to ensure that in general competencies is critical for small business survival and growth.