THE ROLE OF ENTREPRENEURIAL COMPETENCIES ON THE SUCCESS OF SME IN NIGERIA

ABSTRACT
The research aimed at examining the factors that may impact upon business success in the two municipals of Yenagoa SME’s. The study examined the extent to which entrepreneurial competence influenced business success in SME’s. The study was conducted at Yenagoa Municipals. Although it has been difficult to ascertain why in similar situations some entrepreneurs fail while others succeed, it is through that the focus on “entrepreneurial competencies” offers a practical means of addressing the phenomenon. SME’s are still faced by lack of appropriate knowledge and skills, limited skills, limited access to information technology, dependency on poor and obsolete technology.

The study comprised 60 SME’s, 30 from each municipality. The study used random sampling since SME’s are many and scattered in wide geographical area. One of the most serious impediments is limited capacity of people who start and operate the businesses, in terms of the attitudes, motivation, exposure, skills and experiences. Education and training programs could provide owners with opportunities to explore their motives of firm ownership and a better understanding of the consequences of not seeking success.

The findings of the study showed that business or entrepreneurial failures are mostly attributed to inadequacy of financial resources. The conclusion of the study indicates that one of the other serious impediments is the limited capacity of people who start and operate the businesses, in terms of the attitudes, motivation, exposure, skills and experiences. The study that recommends there is substantial need to study on the role of entrepreneurial competencies. Also the study recommends that education and training are crucial to SME’s since they play a big role in the success of the business. Moreover, SME’s require organization’s mission, vision, values and strategic plans. At every level of the organization competency is required in order to successfully perform duties required, skills gained from education or training will increase the abilities of SME’s to achieve success.

TABLE OF CONTENTS
ABSTRACT

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 PROBLEM STATEMENT
1.3 STUDY OBJECTIVES
1.4 SIGNIFICANCE OF THE STUDY
1.5 STUDY QUESTIONS/HYPOTHESES
1.6 SCOPE AND LIMITATION OF THE STUDY
1.7 DEFINITION OF TERMS

CHAPTER TWO
REVIEW OF RELATED AND RELEVANT LITERATURE
2.1 INTRODUCTION
2.2 CONCEPTUAL CLARIFICATIONS
2.3 THEORETICAL STUDIES
2.4 EMPIRICAL STUDIES
2.5 RELATED LITERATURES

CHAPTER THREE
RESEARCH METHODLOGY
3.1 RESEARCH DESIGN
3.2 STUDY AREA
3.3 SOURCES OF DATA
3.4 POPULATION OF THE STUDY
3.5 SAMPLE SIZE DETERMINATION
3.6 INSTRUMENTATION
3.7 RELIABILITY AND VALIDITY OF INSTRUMENT
3.8 METHOD OF DATA ANALYSIS

CHAPTER FOUR
DATA PRESENATATION, ANALYSIS AND INTERPRETATION
4.1 DATA PRESENTATION
4.2 DATA ANALYSIS
4.3 DATA INTERPRETATION

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 SUMMARY
5.2 CONCLUSION
5.3 RECOMMENDATION
REFERENCES
APPENDIX

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Small and Medium Enterprises (SMEs) are the backbone of the contemporary economic development due to the significant role they play in the sustainability of the world economic development (Carter and Tamayo, 2017; Wattana pruttipaisan, 2002). SMEs account for more than 90 percent of businesses, contribute to more than 50 percent of employment and over 50 percent of gross domestic products (GDP) in the world (Kessey, 2014). In Africa, the commonest business entities are SMEs. The enterprises contribute significantly to the provision of employment, the formation of capital, economic viability and poverty alleviation among others (Ganyaupfu, 2013). Today, Africa’s growing economy sees SMEs as the mechanism for achieving growth and excellence (Roldan, 2015). The sector provides substantial employment and stimulates economic growth. For example, in Ghana, the sector constitutes 92 percent of businesses in the country (Steel and Webster, 1991). In South Africa, Ganyaupfu, (2013) confirmed that 91 percent of all the registered business entities fall under SMEs and constituting about 52 to 57 percent of the country‟s GDP. However, in Nigeria, a number challenges overwhelmed the country‟s business milieu, which renders the environment not only difficult for business but resulting to the increasing failure of SMEs in the country. Studies established that 85 percent of businesses in the country do not survive beyond the first five years of their establishment (Ogboru, 2005; Olu and Haynes, 2006; Ariyo, 2008). Moreover, even the little percentage that manages to sustain beyond five years, collapse between sixth to tenth years of their existence which leaves only around 5 to 10 percent of the SMEs in business (Onugu, 2005). Despite the effort and contribution of the Nigerian government to the development of SMEs, yet the input of the enterprises including micro businesses to the country‟s exportation is as low as 7.27 percent (SMEDAN, 2013). The lack of entrepreneurial competencies has been identified as the leading cause of business failure in the country (Inyang and Enuoh, 2009). Therefore, the need for entrepreneurial competency become necessary as it provides practical solutions to the mystery of business downfall (Sánchez, 2013).

Competency of the entrepreneurs is one of the significant determining factors for success, performance and growth or failure of business operation (Kiggundu, 2002; Brinckmann, 2008; Mitchelmore and Rowley, 2013). Furthermore, female Entrepreneurs mostly operate small-scaled type of businesses which requires the businesses to depend mainly on the competencies of the owner. Thus, understanding the nature of such competencies in the context of female Entrepreneurs is very important (Mitchelmore and Rowley, 2010; Mitchelmore et al. 2008).

Competencies as the characteristics of entrepreneurs that differentiate excellent from average or poor entrepreneurial performance are a cluster of knowledge, behaviours, skills and abilities (Wu, 2011; Athey and Orth, 1999). Similarly, Man, Lau, and Chan, (2002) view entrepreneurial competencies as nothing but a bunch of high-level characteristics which includes knowledge, skills and personality traits. Entrepreneurial competencies lead enterprises to achieve sustainable competitive advantage and eventually result in the achievement of business success and growth (Man et al., 2002). Tehseen and Ramayah, (2015) stressed the need for the understanding of the significance of entrepreneurial competencies more especially in the developing economies because entrepreneurs‟ competencies are vital for business survival, performance and success. However, the measurement of entrepreneurial competencies varies depending on the context, prediction and assumption (Mitchelmore and Rowley, 2010). Therefore, in the Nigerian business milieu, as established by numerous scholars, the leading competencies related obstacles that result in poor performance and failure of businesses in the country are; lack or ineffective innovation, unfavourable marketing strategies, lack of distinctive entrepreneurial traits (Duru, 2011; Eneh, 2010; Onugu, 2005; Adeoti, and Adeoti, 2005; Siyanbola et al., 2012). The principal aim of the study is therefore to examine the relationship between the entrepreneurial competencies and business success in SME’s in different settings within the same country.

For more Entrepreneurial & Business Mgt. Projects click here
================================================================
Item Type: Project Material  |  Size: 122 pages  |  Chapters: 1-5
Format: MS Word  |  Delivery: Within 30Mins.
================================================================

Share:

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Search for your topic here

See full list of Project Topics under your Department Here!

Featured Post

HOW TO WRITE A RESEARCH HYPOTHESIS

A hypothesis is a description of a pattern in nature or an explanation about some real-world phenomenon that can be tested through observ...

Popular Posts