EFFECTS OF ENTREPRENEURIAL COMPETENCIES ON SMALL AND MEDIUM-SIZED INTERPRISES (SMEs) PERFORMANCE IN JIGAWA STATE, NIGERIA

Abstract

Small and medium-sized enterprises (SMEs) constitute an important component of economic development through their contributions to employment generation, income creation, poverty reduction and business development. However, many SMEs continue to experience challenges associated with business survival, growth, competitiveness and sustainability. Entrepreneurial competencies are considered important capabilities that enable entrepreneurs to identify opportunities, manage resources, make effective decisions and respond to changing business environments. This study examined the effects of entrepreneurial competencies on SMEs performance in Jigawa State, Nigeria. Specifically, the study examined the effects of personal competency, social competency and professional competency on SMEs performance. The study was anchored on the Resource-Based View (RBV) and Competency-Based View (CBV). A quantitative cross-sectional survey design was adopted. The study population comprised 13,912 registered SMEs in Jigawa State in which 389 SMEs were selected for the study. Data were analyzed using SPSS 25 and SmartPLS 4. The findings revealed that personal competency had a positive and significant relationship with SMEs performance (β = 0.217, t = 8.289, p = 0.026). Social competency also had a positive and significant relationship with SMEs performance (β = 0.109, t = 4.344, p = 0.025), while professional competency had a positive and significant relationship with SMEs performance (β = 0.055, t = 6.082, p = 0.010). The findings demonstrate that entrepreneurial competencies are important intangible resources and capabilities for enhancing SME performance. The study recommends continuous development of entrepreneurs' personal, social and professional competencies through training, mentoring, networking and entrepreneurship development programmes.