RELEVANCE OF SMALL AND MEDIUM ENTERPRISE OWNERS/MANAGERS COMPETENCIES ON VENTURE PERFORMANCE

Abstract

Various researchers have examined the association between the small and medium scaled business owner/managers competencies and venture performance. However, there exists a lack of empirical evidence of such relationships in small and medium enterprises (SMEs) operating in Nigeria. To address this knowledge gap, this study examined the effects of technical, generic, and conceptual expertise on the performance of SMEs operating in the Federal Capital Territory (FCT), Abuja, Nigeria. The primary source of data collection was employed and data were collected from respondents with the aid of questionnaires. Respondents of this study constitute owners/managers of SMEs operating in the FCT. Copies of questionnaires were distributed using a self-administered method to the sample of 427 SMEs. However, only 356 questionnaires were found usable for final analysis. Based on the structural equation modeling performed using Smart PLS2, the analysis revealed that generic skills and conceptual skills have a major positive impact on the success of most SMEs in the FCT. Nonetheless, technical skills have a negligible positive impact on performance. The study, therefore, recommends that SME managers often acquire generic skills to foster a good relationship among employees in their firms. In addition, managers should possess conceptual expertise which aids the ability to always come up with strategic goals that would be earnestly pursued by all employees of their organization and ultimately boost performance.