Impact of Entrepreneurial Competencies on the Performance of Small and Medium Sized Enterprises in North-East Region of Nigeria

Abstract

The competitive nature of our small and medium sized business requires visionary thinking and creativity to achieve performance. Being strategic, ability to identify opportunity and creative is important but being competent is very vital for performance of SME. These can be achieved through formulating, evaluating, identifying, guiding, and encouraging of entrepreneurs. The paper therefore examines the competencies required for SME performance, as influenced by strategic, organizing and opportunity competency. The paper adopted a cross sectional approach and gathered quantitative data from 480 randomly selected firm in the six 6 states of the region. Finding shows that engaging in core competencies of strategic thinking, strategic actions and visionary leadership by the entrepreneur are positively related to SME performance. Engaging in organizing competencies, entrepreneurs require organizing and leading competencies which are positively related to SME performance. Findings also show a positive impact of opportunity competencies in identifying and taking advantage of business opportunity. The study concludes that though entrepreneurial competencies analyzed here are positively related to SME performance. Entrepreneurs ought to engage in training and development to better equip themself with best competency. The study recommended that, stakeholders and policymakers should be devoted to allocating resources for training programs for prospective entrepreneurs.