Relationship between Entrepreneurial Competencies of SME Owners/Managers and Firm Performance: A Study on Manufacturing SMEs in Khulna City

Abstract

This study is aimed at investigating the relationship between the entrepreneurial characteristics and the performance of Small and Medium-sized Enterprises (SMEs) under the context of manufacturing industry in Khulna. Based on literature review, a theoretical model relating entrepreneurial characteristics from a competency approach to the performance of SMEs has been developed. The empirical research involved quantitative stages. Data were collected from 100 owners or managers of SMEs in the field of manufacturing industry in Khulna. The six groups of competencies including opportunity, organizing, relationship, strategic, commitment, and conceptual competencies were identified. The findings of the study show that all the competencies are required by entrepreneurs of manufacturing industry to enhance the performance of their firms. Among them, opportunity, organizing, relationship, and strategic competencies have significant impact on the performance of the firms. Other two competency areas-commitment and conceptual competencies are not significant for firm performance at this moment. But in the long run, entrepreneurs should focus on all the competencies for better future performance.

Keywords: SME, Entrepreneurship, Competencies, Firms-Performance

View PDF