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Entrepreneurial Characteristics and Competency as Determinants of Business Performance in SMEs

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Abstract

The purpose of this research is to empirically test the influence of entrepreneurial characteristics and competencies on business performance in small and medium enterprises (SMEs). This study was conducted with 147 SMEs owner in Malang regency East Java Indonesia using survey instrument. Data analysis using the Structural Equation Modelling. The results of this study indicate that the entrepreneurial characteristics have a significant influence on business performance. Entrepreneurial competencies as mediating in the relationship between entrepreneurial characteristics and business performance. It means the more powerful entrepreneurial characteristics will lead to an increase in the competence of the SMEs owner, which will ultimately have an effect on business performance.

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... To enhance entrepreneurial activities in the creative industry, the performance of entrepreneurs needs to be taken into account. Entrepreneurial performance can be influenced by two factors: the personal qualities of the entrepreneur and the business aspects of his or her company (Sarwoko et al., 2013). Research that focuses on the personal qualities of entrepreneurs has analyzed how their demographics, characteristics and competencies affect business performance. ...
... Research that focuses on the personal qualities of entrepreneurs has analyzed how their demographics, characteristics and competencies affect business performance. Entrepreneurial characteristics are by their nature enduring and resilient and serve as the distinct attributes that contribute to entrepreneurs' potential for success (Sarwoko et al., 2013). On the other hand, entrepreneurial competency is defined as the ability of entrepreneurs to effectively use various resources to enhance performance and achieve success (Al Mamun et al., 2019a). ...
... Nonpsychological characteristics include age, marital status, gender, religion, family influence, work experience and education. Meanwhile, psychological characteristics can take the form of creativity/innovation, risk-taking, autonomy, proactiveness and leadership (Sarwoko et al., 2013;Bawakyillenuo and Agbelie, 2021;Salve, 2022;Setiawan and Soelaiman, 2022). ...
Article
Purpose The purpose of this study is to examine the impact of the characteristics and competencies of entrepreneurs on business performance within the creative industry in Indonesia. By creative industry, is refer to market-oriented enterprises that use creativity and intellectual capital to create, produce, distribute and disseminate creative goods and services through media channels. Design/methodology/approach This study measured six entrepreneurial characteristics: creative and innovative, risk-taking, need for achievement, leadership, autonomy and proactiveness. In addition, it measured five entrepreneurial competencies: opportunity, strategy, relationship, organization and learning. Data collection was conducted using a questionnaire administered to 294 entrepreneurs operating businesses within the creative industry in Java, Sumatra and Kalimantan, Indonesia. Findings The findings of this study demonstrated that entrepreneurial characteristics and competencies had a significantly positive effect on business performance. Creativity and innovation emerged as the most influential characteristics, whereas strategy stood out as the most influential competency. Originality/value This study aimed to examine whether the personal qualities of entrepreneurs as identified within conventional industries − specifically their entrepreneurial characteristics and competencies − had an impact on business performance in the creative industry in Indonesia. Conventional industries, unlike creative industries, are characterized by the production and distribution of physical goods or basic services, with less emphasis on creative innovation as the core driver.
... Specifically, the relationship between financial services and SME development is partly mediated by entrepreneurial competence [38]. Moreover, Sarwoko et al. [39] revealed the role of entrepreneurial ability in mediating the SME performance relationship, showing the significance of this characteristic in predicting SME success. ...
... This shows that entrepreneurial competence has a strong influence on the performance of SMEs. The results of this study also support the results of research from Sarwoko et al. [39]. Facts in the field are based on observations that SMEs in South Buton Regency who have entrepreneurial competence in the form of initiative, independence, confidence, and the courage to take risks can experience an increase in their business profits and an increase in the number of employees. ...
... Further investigation confirms that only developing SMEs have entrepreneurial competence, while those that are not developing do not, which is in line with the second hypothesis. This finding is in line with research by Sarwoko et al. [39] which shows that entrepreneurial competence has a mediating effect on SME performance. Furthermore, these results are also supported by the facts on the ground that SMEs who receive government support can improve the performance of SMEs in terms of profitability and available resources, provided that SMEs have entrepreneurial competence. ...
... When it comes to entrepreneurship, one's success can be determined by her train of thought, which can be measured through emotional intelligence. Sarwoko et al. (2013) in studying entrepreneurship in Malang, Indonesia, conclude that entrepreneurial characteristics of SMEs determine a company's performance. Ubadi & Ali (2020) defined that the personality of an entrepreneurial leader affects the success of the company. ...
... In England and Wales, for example, the research conducted by Mitchelmore & Rowley (2013) concludes that competencies related to personal and relationship, business and management, entrepreneurial, and human relations competencies affect the development of women entrepreneurial businesses. Sarwoko et al. (2013) also come to a similar conclusion, concluding that higher competence of the SMEs owners leads to higher performance. Meanwhile, Sarker & Palit (2014) argue that 8 competencies determine the performance of women entrepreneurs. ...
... The easiest indicator is by looking at the company's profit, Return on Investment, and sales level. Similarly,Sarwoko et al. (2013) argue that company performance can be measured by the profit earned, the level of capital turnover, the controlled market share, and the level of sales. Meanwhile,Li et al. (2005) use 3 indicators for performance measurement, namely how companies can create efficiency, increase growth, and profit. ...
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The COVID-19 pandemic has momentously affected the world economy, including Indonesia, whose economy decreased by -2.07% in 2020. This phenomenon has presented monumental challenges and put heavy pressure on women entrepreneurs as social norms in Indonesia generally require women to bear the responsibility of taking care of household affairs. Meanwhile, a successful women-run business is typically characterized by personality, competence, and environmental support surrounding her. Therefore, in ensuring business sustainability, affording flexibility for women in running a business is needed. One way to achieve the goal is through running a business through digital means during economic downturns such as the COVID-19 pandemic. The research method used in this study is a quantitative method using an online questionnaire distributed to 250 women entrepreneurs as a data collection tool. Data were thereupon processed by using Amos, with the Structural Equation Model (SEM) application. This study shows that environmental competence and support have a consequential effect on organizational flexibility, while personality does not influence organizational flexibility. This study also finds that organizational flexibility significantly affects company performance.
... Previous studies have discovered a relationship between performance and entrepreneurial skills. (Dhamayantie & Fauzan, 2017;Sánchez, 2012;Sarwoko, 2013;Shehnaz et al., 2014). In contrast to earlier research, (Lopa & Bose, 2014) which found that entrepreneurial abilities had no significant affect on performance. ...
... A group of essential traits known as competence produce exceptional performance and quantifiable results (Wu, 2009). Previous studies have shown a strong correlation between performance and entrepreneurial traits (Barazandeh et al., 2015;Dhamayantie & Fauzan, 2017;Hormiga et al., 2010;Karami, 2004;Man & Lau, 2008;Robert Baum et al., 2001;Rosli & Sidek, 2013;Sarwoko, 2013;Tanoira & Valencia, 2014). In contrast, another study found that entrepreneurial skills had no significant relationship on performance (Lopa & Bose, 2014). ...
... An SRW of 0.875> 0 was found when the impact of entrepreneurial skills was evaluated on firm performance, showing that these abilities have an impact on both high levels and low levels of financial performance. The alternative theory is accepted and the h0 is rejected if the significance level of the CR is more above 0.05, which suggests that entrepreneurial traits have an influence on company performance and supports hypothesis 2. According to previous research, there is a significant correlation between performance and entrepreneurial skills (Barazandeh , 2015;Dhamayantie & Fauzan, 2017;Hormiga et al., 2010;Man & Lau, 2008;Rosli & Sidek, 2013;Sarwoko, 2013;Tanoira & Valencia, 2014). ...
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This paper will assess & present empirical evidence on the issue in order to better understand how Microfinance Institutions (MFIs) mediate entrepreneurial talents. The role of MFIs is evaluated based on their functions as a source of finance, facilitators for financial management, managerial management, and marketing management. Sales growth, profit growth, asset growth, employee growth, and market share growth are all ways to gauge a company’s performance. While entrepreneurial ability is assessed using technical, marketing, financial, and interpersonal abilities. The research approach is explanatory, with data collected through questionnaires and interviews. A sample of 150 SMEs sampled the population of 34,816 SMEs in West Java’s Greater Bandung region, Indonesia, using a proportionate random sampling approach. Structural Equation Modeling and a 5-point Likert scale were used to analyze the data collected (SEM). According to the findings, microfinance institutions can help businesses succeed by a small but significant amount. Business performance is positively and significantly impacted by entrepreneurial talents. The MFIS’s significance in influencing entrepreneurial skills expands in relation to corporate performance.
... Vast literature on SMEs performance uses various organizational resources to measure SMEs performance. In another study conducted by Sarwoko and Hadiwidjojo (2013), it was observed that entrepreneurial competencies mediate the relationship between entrepreneurial performance and business success. The study noted that a significant positive association existed between entrepreneurial competencies and SMEs performance. ...
... Competencies of an entrepreneurial as having dual origin was seen through in-dept analysis of entrepreneurial as competencies. Ahmed et al (2010), argued that business success significantly be influenced by entrepreneurial competencies and also that entrepreneurial competencies serve as predictor of SMEs success in Malaysia, even more strongly for dynamic as well as stable environmental conditions Sarwoko and Hadiwidjojo (2013), concluded and reported that relationship between entrepreneurial characteristics and business performance are also that business performance was being influenced by entrepreneurial competencies. From the literature reviewed so far, there exists the gap to be filled because most of the existing literature ignores the level of entrepreneurial commitment as a significant determinant of SMEs performance (Sarwoko and Hadiwidjojo, 2013). ...
... Ahmed et al (2010), argued that business success significantly be influenced by entrepreneurial competencies and also that entrepreneurial competencies serve as predictor of SMEs success in Malaysia, even more strongly for dynamic as well as stable environmental conditions Sarwoko and Hadiwidjojo (2013), concluded and reported that relationship between entrepreneurial characteristics and business performance are also that business performance was being influenced by entrepreneurial competencies. From the literature reviewed so far, there exists the gap to be filled because most of the existing literature ignores the level of entrepreneurial commitment as a significant determinant of SMEs performance (Sarwoko and Hadiwidjojo, 2013). ...
Article
The contests of the business environment seem to be huge and can devastate Small and Medium Enterprises thereby decreasing their capacities of contributing to the gross domestic product and decrease the rate of unemployment. The inability to demonstrate required commitment as expected by many entrepreneurs appear as the major challenges which SMEs are faced with in today’s vibrant business environment. This study, therefore, examines the assessment of entrepreneurial commitment on business performance among small and medium enterprises in Ikeja Local government of Lagos state, Nigeria. The study utilised a cross-sectional research design, while a multi-stage sampling technique was used for the study. 120 copies of the questionnaire were distributed, 114 were returned and found usable. Frequency distribution (percentage analysis) was used to analyse data. The findings revealed that entrepreneurial commitment has positive significant effect on business performance. The study concludes that entrepreneurial commitment has significant effect on business performance. Thus, it was recommended that owners/managers of SMEs should be more committed to their businesses and develop attitude of commitment in order to achieve better performance for their businesses.
... However, entrepreneurial characteristics is one of the major criteria for successes of such businesses. The performance of enterprises is determined by the characteristic of entrepreneurship and entrepreneurial competence (Sarwoko et al., 2013). These findings indicated the importance of individual factor as a determinant of the enterprise's performance. ...
... In addition several studies have revealed the cause-effect relationship between entrepreneurial characteristics and firm performance from different perspectives (Sarwoko, et al., 2013;Ajayi & Akinyemi, 2016;Mothibi, 2019;Aisyah, Musa, Ramli, 2017) without reference to a particular industry. Although, Bahari, et al. (2018) focused on the food manufacturing industry. ...
Conference Paper
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In order to be strategic due to stiff competitions most new entrant entrepreneurs and business angels are always seeking for characteristics that can spur performance and sustain business competitiveness. Therefore, this study examined effect of entrepreneurial characteristics on the performance of confectionary firm in Ado-Ekiti Local Government Area, Ekiti State. The study used a cross sectional research design to elicit information from some confectionary firms in Ado-Ekiti Local Government Area. The study found one hundred and eighteen (118) questionnaire useful representing more than 70 percent of the total questionnaire administered. Both descriptive and inferential statistics were deployed. The results revealed that there is an impact of entrepreneurial characteristics on the performances of confectionary firm. In summary, the study found that visionary of the confectioneries was found to be the most prevalent entrepreneurial characteristics (Mean = 3.847). Findings from the study also show that other entrepreneurial characteristics such as need for achievement, locus of control, tolerance, and persistence and resilience were all agreed by the respondents to be prevalent among confectioneries in Ado-Ekiti, Nigeria, as shown by mean scores of 3.846, 3.418, 3.474, and 3.847 respectively. But the effects of entrepreneurial characteristics of confectioneries on their performance have different results from the descriptive analysis. The study further provide implications and conclusion.
... Entrepreneurial characteristics, which are also known as personal and psychological factors, influence entrepreneurial performance (Blackman, 2003). Sarwoko et al., (2013) describes competence as an ability that a person is good in doing, like a talent that help to get a job done well. Characteristics are a crucial aspect of entrepreneurial competencies. ...
... Since entrepreneurs have different characteristics and practices, it is significant to understand and study the relationship between the characteristics of the entrepreneur/the enterprise and entrepreneurial performance (Sarwoko et al., 2013). Considering the significance of entrepreneurial characteristics, the vital assumption of this study is to investigate the influence of entrepreneurial characteristics on the performance of small and medium scale enterprises in Pune and though many studies have been conducted on the impact of entrepreneurial characteristics on performance of SMEs, though, most of these studies are foreign based. ...
Article
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Purpose: This research study aims to examine the relationship between the entrepreneurial characteristics and financial performance of small and medium scale enterprises, also to find out the influence of entrepreneurial characteristics have on the financial performance of the small and medium scale enterprises in Pune, India. Method: Data was collected through the random sampling method and the questionnaire was designed in five point ordinal scale precisely Likert scale. In total 254 entrepreneurs were administered with the questionnaire and data collected from 210 respondents were complete and useful for the research process. All the respondents are entrepreneurs from the industrial city Pune. Findings: The study results showed that entrepreneurial characteristics have a significant and positive influence on the financial performance of small and medium scale enterprises located in the Pune, India. The most influential independent variable on the financial performance is risk-taking propensity followed by innovativeness, need for achievement, self-confidence, and locus of control.
... The robustness of strategy depends on the business owner's response to internal and external influences. Sarwoko and Hadiwidjojo (2013) propose that strategy selected is one of the components a researcher can use to measure entrepreneurial competencies. This view supports the proposed model motivation to investigate the link between personal entrepreneurial competencies and SME operational performance mediated by strategic stance. ...
... As stated before, growth-orientated entrepreneurs are invariably strategically-minded (Mazzarol, 2004). The study results support the view that entrepreneurial competencies influence how entrepreneurs react to strategic challenges as they encounter them, continually assessing the Page 20 environment to adapt to them (Sarwoko & Hadiwidjojo, 2013). The results of the study seem to resonate with the theory of entrepreneurship (TOE), also known as the entrepreneurial value creation theory. ...
Article
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Purpose of the study: This study examined the relationship between personal competencies, dynamic capabilities (absorptive capacity, adaptive capacity, strategic stance) and SME performance. Design/methodology/approach: The study adopted a quantitative approach, employing a cross-sectional survey research design. A total of 253 self-administered questionnaires were obtained for analysis. Exploratory factor analysis, confirmatory factor analysis and structural equation modelling were performed to confirm a causal relationship and make inferences among the constructs of interest Findings: The results of the study show that personal entrepreneurial competencies have a positive and significant influence on the absorptive capacity and strategic stance of SMEs but a negative relationship with the SMEs adaptive capacity. In addition, the study revealed a positive and significant relationship between the three dynamic capabilities and SME operational performance of reaching the model's appropriation stage-entrepreneurial success. Recommendations/value: These findings demonstrate the need for entrepreneurs to keep reflecting on their own entrepreneurial competencies such as the ability to deal with unexpected events, creativity and open-mindedness. Further, the study underscored the need for SMEs to use employees' knowledge, education and competence to enable the business to adapt to market changes and technological development. Managerial implications: By investigating personal competencies and dynamic capabilities jointly and their relationship with SME operational performance, the study shed more light into the theory of entrepreneurship and the two stage entrepreneurial development. In particular, the study challenged for more investigation into the relationship between personal entrepreneurial competencies and adaptive capacity as a dynamic capability.
... The personal background provides general knowledge about a person. As a principle of a personal background, two characteristics are involved: attribute and attained (Sarwoko et al. 2013). The attributes are a factor that is an entrepreneur in itself, which includes gender and age. ...
... According to earlier franchising studies, communication enables people to create trust (Faulkner and Trotter 2017;Sarwoko et al. 2013). However, franchise owners can suffer significantly from a lack of communication, especially concerning finances. ...
Article
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The franchising sector demands a high level of assurance and commitment. This is because creating entrepreneurial value is at the core of any franchising strategy. However, little is understood about what causes franchised businesses’ critical success factors, particularly in developing nations like Malaysia. Hence, this study aims to identify the critical success factors in franchising business firms. The characteristics of franchisors and franchisees that can contribute to the franchise system’s success in Malaysia were discovered using a focus group method by inviting franchisors and franchisees who are already running their businesses. In addition, Perbadanan Nasional Berhad (PERNAS) and the Malaysian Franchise Association (MFA), together with academicians, were also invited as a part of the focus group discussion. The findings show that three critical success factors emerged from this study, the franchisor’s capability, interconnection with franchisees, and constant innovation. These three elements demonstrated that there is still room for a more significant expansion. Therefore, anyone considering joining a franchise should know it is an option. Additionally, this research helps produce a valuable model of the franchising business process that regulators, franchisors, and franchisees can use as a guide. Finally, this study also offers directions for further research.
... This research implies that entrepreneurial competency may be a moderator in the interactions between market orientation, entrepreneurial skills, sales orientation, networking and company success. Sarwoko et al. (2013) discovered that entrepreneurs' competency has a mediating influence on the performance of MSMEs. Baum and Locke (2004) discovered that entrepreneurial abilities indirectly influenced venture growth. ...
Article
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Purpose This paper is an empirical investigation of the effect of knowledge, skills and entrepreneur competencies on the performance of micro-, small- and medium-sized enterprises (MSMEs) operating in Upper Sindh, Pakistan. Design/methodology/approach The data were collected from owners/managers of MSMEs operating in major cities of Upper Sindh. A total of 1,100 respondents were identified through snowball and social contacts tools. A total of 316 respondents permitted researchers to visit their firms and collecting data from them by a survey questionnaire. Findings The findings shows that entrepreneurial skills and networking have a positive and significant effect on entrepreneurial competency. Then, entrepreneurial skills, networking and entrepreneurial competency have a positive effect on enterprise performance. The findings show a significant mediation effect of entrepreneurial competency on the relationships between entrepreneurial skills and networking and enterprise performance. Originality/value This paper provides useful conclusion in understanding the entrepreneur’s characteristics and their impact on performance MSMEs, which is crucial for promoting entrepreneurial activities and for enhancing socio-economic conditions among low-income households located in Upper Sindh, Pakistan. The government must make preparation in organizing trade fairs, seminars and road shows on certain services/ products to which MSMEs’ entrepreneurs, consumers and suppliers might be invited to ease their connections.
... The study employed the variance-based approach to Structural Equation Modeling (PLS-SEM) to analyse the data after editing and coding. The PLS-SEM was used because it is robust as it combines path and factor analysis in an all-encompassing statistical technique (Sarwoko and Hadiwidjojo, 2013;Agyapong and Obro-Adibo, 2013) that assisted in establishing the relationship between compensation packages and academic staff retention. In employing the PLS-SEM, the first step is to specify and evaluate the model. ...
Article
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The role of compensation in academic staff retention in higher education institutions is a long-standing debate. This study examined the direct effect of compensation on academics’ intention to remain at or leave private higher education institutions in Ghana. A correlational approach (survey questionnaire, Partial Least Square Structural Equation modelling) was used to assess the relationship between compensation and retention of 169 full-time academic staff randomly selected across five of these institutions. The study found that, although salary had a significant and positive relationship with academic staff retention (path coefficient = 0.229, t statistic = 2.003, p = 0.046), fringe benefits had a more significant and positive relationship (path coefficient = 0.597, t statistics = 5.484, p = 0.000). Collectively, salary and fringe benefits explained 60% of the variance in academic staff retention. These findings suggest that, because salaries are relatively low in Ghanaian private higher education institutions, fringe benefits have become pivotal in academic staff decision-making in relation to remaining or resigning.
... Entrepreneurial competency encompasses various entrepreneurial traits like attitudes, beliefs, knowledge, skills, abilities, personality, capabilities, and behavioral patterns, crucial for a company's growth, rooted in both competency and entrepreneurship research [39], [40]. ...
... However, (Man, Lau, & Chan, 2002, p. 124) identify these competencies as the "total ability of the entrepreneur to perform this role successfully." Similarly, (Sarwoko, Surachman, Armanu, & Hadiwidjojo, 2013) argue that robust entrepreneurial characteristics enhance the competency of entrepreneurs and positively impact business performance. Also, (Kiggundu, 2002) emphasises the combination of the leader's beliefs, attitudes, knowledge, personality, abilities, skills, and behaviour that collectively contribute to an organisation's success. ...
Article
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This study emphasises the importance of leadership competencies and self-efficacy in Bahraini SME leaders as they navigate complex situations and market trends and lead their teams in meeting challenges to achieve maximum performance. The study investigates leaders' leadership competencies and self-efficacy in Bahrain's Business Process & IT Consulting organisations. By understanding these factors, the study can identify areas for development and propose initiatives to enhance the leadership skills of Bahraini SME executives, ultimately contributing to the success of their businesses. This study employed a qualitative approach to gather data from senior management within Bahrain's Business Process & IT Consulting organisation. Purposive sampling was used to select participants of various ages, social backgrounds, and experiences. The research design incorporated a combination of Action Research (AR), case studies, ethnography, and narrative analysis. This multi-method approach is a robust and well-established strategy for analysing qualitative data. An investigation into the consultancy organisation revealed a critical shortcoming in leadership competencies. The leadership team needs more competencies and self-efficacy to navigate the economic crisis challenges effectively. This deficiency, which is currently hindering their ability to develop a strong company reputation, is a crucial area that needs immediate attention. Addressing this will guide the organisation towards success in a competitive environment..
... Jumlah UMKM yang cukup banyak mampu berkontribusi terhadap pertumbuhan ekonomi karena usaha kecil berperan sebagai penyerap tenaga kerja, menghasilkan barang dan jasa dengan harga yang terjangkau untuk memenuhi kebutuhan masyarakat, dan penghasil devisa negara yang potensial karena keberhasilannya dalam produksi komoditi ekspor non migas (Sarwoko, 2013;Aliyah, 2022). Salah satu daerah di Kabupaten Malang yang memiliki UMKM melimpah yaitu di Kecamatan Wagir. ...
Article
Usaha mikro kecil dan menengah (UMKM) berperan penting mendorong perekonomian Indonesia. Usaha UMKM tersebar di berbagai daerah di Indonesia. Salah satunya di Kabupaten Malang yang memiliki UMKM melimpah yaitu di Kecamatan Wagir. Kegiatan pengabdian ini bertujuan untuk memberikan edukasi masyarakat dan pengrajin olahan bambu terkait pengoptimalan potensi bambu yang ada di desa Petungsewu dan desa Pandanrejo Kecamatan Wagir. Metode pelaksanaan program ini berupa focus group discussion (FGD) dan pendampingan terhadap masyarakat dan pengrajin olahan bambu. Hasil yang telah dicapai pada kegiatan pengabdian pada masyarakat ini adalah menciptakan peluang bisnis dalam meningkatkan usaha dari adanya pengoptimalisasian dan meningkatkan produktivitas hasil potensi bambu.. Kata kunci — Produktivitas, Olahan bambu, UMKM, Desa Petungsewu dan Pandanrejo Abstract Micro, Small and Medium Enterprises (MSMEs) play an important role in driving the Indonesian economy. MSMEs are spread across various regions in Indonesia. One of them is in Malang Regency which has abundant MSMEs, namely in Wagir District. This service activity aims to provide community education and bamboo processing craftsmen related to optimizing the potential of bamboo in Petungsewu village and Pandanrejo village, Wagir District. The method of implementing this program is in the form of focus group discussion (FGD) and assistance to the community and processed bamboo craftsmen. The results that have been achieved in this community service activity are creating business opportunities in increasing business from optimizing and increasing the productivity of potential bamboo products. Keywords — Productivity, Bamboo products, MSMEs, Petungsewu and Pandanrejo villages
... There is not a single universally accepted definition of HRM formalization. Sarwoko et al. (2013) have covered almost all the important aspects of HR formality. According to their definition, formal HRM means that procedures or practices are written down (like a list of skills and qualifications for jobs), regularly applied within an organization (like yearly performance review), assured to take place like employer sponsored training. ...
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This study examined the effect of human resource management practices on the growth of small and medium scale enterprises in Kaduna state. The study employed descriptive survey design while primary data was used through the administration of structured questionnaire as the source and method of data collection for the study respectively. The population of the study comprises of one hundred and fifty (150) staff from the various SMEs in Kaduna state. The adjusted sample size of the study was computed to be 120 participants using Taro Yamane formula for sample size computation through the use of census as the sampling technique of the study. The data obtained from the respondents were presented using frequency tables, percentages and linear regression (Pearson Correlation). The findings from the study revealed that the independent variables proxied by recruitment and selection, training and development, motivation and remuneration jointly have significant effects on the growth of SMEs in Kaduna State. It is therefore, concluded that human resource management practices is a good driver of SMEs growth in Kaduna State. Therefore, it is recommended that employees who offer the same level of inputs with respect to skills, efforts, qualifications, experience, should be entitled to equitable outcomes in terms of pay, promotion, job security, and opportunity for advancement. Most importantly, additional inputs and outstanding performance should entitle an employee to additional rewards. This study underscores the need for government at all levels as well as the Non-Governmental Organizations to come up with a blue-prints designed at empowering the Small and Medium Scale Business Enterprises in terms of survival funds, recruitment, training, remuneration, and overall human resource management practices with a view to drastically unemployment among youths in Kaduna State, and Nigeria at large.
... It's probable that we can't hope to find someone who possesses every quality necessary to succeed as an entrepreneur. However, combining the most crucial predictors (entrepreneurial knowledge, entrepreneurial Skills and creativity, calculated risk, self-confidence, persistence, human capital and social capital) might help one create and run a profitable company with ensured success, [39]. The section also took into account a few known causes of entrepreneurial failure. ...
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This essay explores the elements that lead to the financial success of entrepreneurs. In particular, it conducted an empirical investigation into the possibility that factors such as age, religious beliefs, risk-taking, marketing strategies, timely and adequate planning, employees’ commitment, accessibility to working capital, reduced bureaucratic steps on import and export matters, education level, and age and technology infrastructure could influence an entrepreneur’s level of success. The study used a descriptive survey research design. The study’s participants were business owners in the six states that make up Nigeria’s southwest region who operated on a micro, small, and medium scale. The 720 entrepreneurs who made up the study’s sample were chosen through a multi-stage sampling process. A self-structured questionnaire covering all the objectives was used as the data collection tool, and it was administered to a select group of entrepreneurs. In addition to applying non-parametric statistical techniques like the chi-squared test and phi statistic, the collected data were analyzed using descriptive statistics like frequencies, percentages, and graphics. In the R-Studio (Posit) environment, the data analysis operations were carried out. The findings showed that a successful entrepreneurship is greatly influenced by a number of factors, including the availability of operating capital, the degree of employee commitment, technological and infrastructural capabilities, risk-taking, effective marketing strategies, adequate and appropriate planning, educational attainment, and age. Success in entrepreneurship, however, is unrelated to fewer bureaucratic procedures involved in the import and export of goods. It was determined that the bulk of the previously mentioned elements affect any business’s ability to succeed in today’s world. Thus, it was suggested that all tiers of government be counselled to provide funding, among other things, to serious business owners.
... The relationship between Personal Entrepreneurial Competencies (PECs) and the performance of SMEs has been extensively studied, with numerous research projects providing insights into this matter. Sarwoko (2013) and Pitakotuwa et al. (2017) have found a direct correlation between entrepreneurial traits and business performance. This assertion finds support in the work of , Baylie (2019) and Mejri & Zouaoui (2020). ...
Article
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The study's objective is to analyze the influence of several elements related to entrepreneurial-specific factors and support factors on the performance of micro-enterprises. The study sample consisted of a total of 756 micro-entrepreneurs who were involved in two main microcredit programs in Malaysia, namely Amanah Ikhtiar Malaysia (AIM) and The Venture Group Economic Fund (TEKUN). The study’s findings, obtained through multiple regression analysis, revealed that factors such as personal entrepreneurial competencies, management practice, microcredit programs and government support exert a significant influence on the performance of micro-enterprises. This finding is consistent with the Resource Base View (RBV) theory which links the importance of internal and external resources as a catalyst for competitive advantage and the performance of a business. The influence of family and commitment to religious principles is less significant. It was associated with the attitude factor of micro-entrepreneurs, who frequently disregard the fundamental principles of religion while making judgments. The impact of family influence on micro enterprises' performance was determined to be negligible. Family members make minimal contributions in terms of finances, energy, or moral support. The formulation of policies is crucial for these insights, which highlight the importance of providing entrepreneurship training and implementing excellent management practices. Additionally, financial support is necessary to promote the growth of micro-enterprises in Malaysia. The government plays a crucial role in facilitating the growth of micro companies by implementing various support programs. An efficient distribution system can minimize the leakage of programs and maximize benefits for the recipients who are intended.
... Competencies of entrepreneurs lead the business to become more successful, and provide the competitive advantage. Sarwoko (2013) identified that entrepreneurial characteristics and competencies are the main cause of business performance in small and medium enterprises. Besides that, De Koning (2003) mentioned that there is a connection between the opportunity development and the ability of the entrepreneurs. ...
Conference Paper
Entrepreneurship is one of critical importance to the modern economy while business performance is the main concern of the organization nowadays. Business performance is varying from organization to organization. Different organization has different standard of business performance. Nowadays, most entrepreneurs have a major impact in the economy segment. Competency is a fundamental characteristic of the entrepreneurs in delivering superior ability in the work or tasks assigned. This study is carried out to study the factors of entrepreneur competencies towards the business performance among SMEs in Malaysia. It is hard to measure the business performance. Therefore, there are six entrepreneurs' competencies being carried out in this study. They are strategy competency, commitment competency, conceptual competency, relationship competency, opportunity competency and organizing competency. A quantitative method was used in this study for data gathering. All items were using 7-point Likert scale. The content validity of this questionnaire was reviewed by the entrepreneurs in SMEs Malaysia. This study anticipates that the six dimensions of entrepreneurs' competencies are the critical antecedents on the SMEs' business performance which could lead to positive relationship toward the business performance among SMEs in Malaysia. The findings of the research provide an insight towards the organization which could lead the SMEs to identify the effective strategies in improving their business performance.. Introduction This study is focusing on the SMEs' business performance quality. In addition, entrepreneurs and non-entrepreneurs are separated by their capacity in perceiving on accessible business opportunities that show up before them in the surroundings or by intuition something new and creative thought that can be created into any items or administration which had been existed or yet to be existed. According to Porter (1980), business performance can be achieved by gaining positional advantages within the market through creating and exploiting that market. It is vital to know the factors that affect the performance of SMEs. Li (2009) mentioned that there were individual competencies that will influence the business success in SMEs. The research which focuses on the competency factors is carried out in order to test the effects of competency towards the business performance. Kiggundu (2002) identified several attributes of entrepreneurial competencies which include attitudes, beliefs, knowledge, skills, abilities, personality and behaviour. According to Ahmad, Ramayah, Wilson and Kummerow (2010),
... Furthermore, it was observed that KK exerted a significant and positive indirect influence on KU. The figure shows that entrepreneurial characteristics is important aspect that must be owned by entrepreneur because entrepreneurial characteristics, both individual characteristics and psychological characteristics, determine business success and make it easier to increase entrepreneurial competence [3,18,19]. ...
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This study researches aims to analyse the effect of entreperenurial characteristics towards the business performance of palm sugar MSMEs in the West Lombok Regency. In this research, entrepreneurial characteristics consist of individual and psychological characteristics; whereas entrepreneurial competencies consist of managerial skill, conceptual skill, social skill, decision making skill and time managerial skill; finally, business performance indicators consist of profit and sales volume. This research used Warp-PLS 8.0 software with a structural equations model. A questionnaire was given to 100 respondents who have palm sugar MSMEs. The result showed that both individual and psychological entrepreneurial characteristics positively influenced business performace. These findings are importance for government to know the increase the performance of palm sugar MSMEs in West Nusa Tenggara.
... Meningkatnya nilai variabel kompetensi kewirausahaan akan mampu mendorong atau meningkatkan prestasi belajar siswa SMK negeri 6 Samarinda. Sarwoko et al. (2013) menyatakan bahwa kompetensi kewirausahaan (entrepreneurial competencies) merupakan keseluruhan atribut kewirausahaan yang meliputi sikap, keyakinan, pengetahuan, keterampilan, kemampuan, kepribadian, dan perilaku yang mengarah pada pencapaian keberhasilan sesuai tujuan awal. Hal ini sesuai dengan penelitian yang dilakukan Hasil penelitian ini mendukung penelitian Yusniar (2017) menyatakan bahwa kemampuan seseorang yang didasari oleh ilmu pengetahuan, ketrampilan, sikap dari hasil belajar dan pengalaman yang didasarkan pada pengalaman masa lalu, kematangan akan mempengaruhi keberhasilan setiap apa yang akan dilakukan, termasuk dalam memotivasi siswa dalam meningkatkan hasil belajar. ...
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Tujuan penelitian ini untuk mengetahui dan menganalisis pengaruh kompetensi kewirausahaan kepala sekolah, kompetensi pedagogik dan kinerja guru terhadap prestasi belajar siswa SMK Negeri 6 Samarinda di masa pandemi covid-19, baik secara parsial maupun simultan. Metode penelitian yang digunakan yaitu penelitian kuantitatif. Adapun analisis data yang digunakan adalah regresi linier berganda. Hasil penelitian menunjukkan bahwa hasil perhitungan diperoleh nilai R = 0,707, angka ini menunjukkan pengaruh atau hubungan yang kuat dari variabel kompetensi kewirausahaan kepala sekolah, kompetensi pedagogik dan kinerja guru berpengaruh signifikan prestasi belajar siswa SMK Negeri 6 Samarinda. Hal tersebut dikuatkan nilai R Square (R2) sebesar 0,500 yang berarti prestasi belajar siswa (Y) diterangkan oleh variabel kompetensi kewirausahaan kepala sekolah, kompetensi pedagogik dan kinerja guru sebesar 50% dan sisanya sebesar 50% dipengaruhi oleh variabel lain yang tidak dikemukakan dalam penelitian ini. Selanjutnya secara simultan variabel kompetensi kewirausahaan kepala sekolah, kompetensi pedagogik dan kinerja guru berpengaruh signifikan terhadap prestasi belajar siswa SMK Negeri 6 Samarinda. Secara parsial variabel kompetensi kewirausahaan kepala sekolah, kompetensi pedagogik dan kinerja guru berpengaruh positif terhadap prestasi belajar siswa SMK Negeri 6 Samarinda, namun kompetensi kewirausahaan kepala sekolah tidak berpengaruh signifikan terhadap prestasi belajar siswa. Variabel yang berpengaruh dominan terhadap prestasi belajar siswa SMK Negeri 6 Samarinda adalah variabel kinerja guru. Hal tersebut dibuktikan dengan nilai t-hitung sebesar 2,601 lebih besar dibanding nilai variabel lainnya.
... Factors determining the performance of SME include entrepreneur education, raw materials, entrepreneur competencies, technology. According to Sarwoko, Surachman, Armanu, and Hadiwidjojo (2013), performance of SMEs is determined by the characteristics of the owner. The overall entrepreneurial competencies are attributes of the entrepreneurship which include attitudes, beliefs, knowledge, skills, abilities, personality, and behaviour which is directed to achieve success. ...
... According to Ajzen (Sarwoko & Hadiwidjojo, 2013), "The formation of intentions can be explained by the Theory of Planned Behavior (TPB) which assumes that humans always have a purpose in behaving." This theory states that intention is a function of three basic Entrepreneurship, Skills for Santri to Become Job Creators Titien Agustina 1 , Dodik Jatmika 2 , Sampurnawati 3 , Wenny Djuarni 4 DOI: https://doi.org/10.54443/sj.v2i3.173 ...
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This study aims to determine fine practices in entrepreneurship for santri (Islamic boarding school students) based on personal characteristic factors (self-efficacy, locus of control, need for achievement, and adversity quotient) that exist in every human being. The research object is santri of the Manbaul Ulum Islamic Boarding School, South Kalimantan, which are generally limited in terms of curriculum content that equips them with productive skills as provisions of practices in society, becoming leaders in society, as well as role models in good economic and social religious activities. The progress of a nation is mainly determined by the advancement of entrepreneurship which is marked by the presence of a high entrepreneurial spirit of individuals so that they have rich initiative and develop creativity and innovation in seeing opportunities and opportunities around them. The Islamic boarding school curriculum generally contains religious education. Educational content that provides life skills in the economic field is very limited and even very limited. In reality, when they finish their education at Islamic boarding schools, students will face highly powerful economic activities that can even create jobs for the people around them. Through a quantitative descriptive research method on 71 students in Class XI and XII with multiple linear regression analysis, the results show that self-efficacy, locus of control, need for achievement, and adversity quotient partially have a significant effect on students’ entrepreneurial intentions. The most dominant influence in student entrepreneurship is the adversity quotient
... The dynamic competencies of women entrepreneurs will improve an enterprise's efficiency by sensing market demand transitions and technical advances. Women are optimistic in the advancement of business models that are focused on an enterprises' ability to adapt efficiently and represent the appropriate significance for providing financial and non-financial outcomes (Haber and Reichel, 2005;Sarwoko et al., 2013). ...
... The dynamic competencies of women entrepreneurs will improve an enterprise's efficiency by sensing market demand transitions and technical advances. Women are optimistic in the advancement of business models that are focused on an enterprises' ability to adapt efficiently and represent the appropriate significance for providing financial and non-financial outcomes (Haber and Reichel, 2005;Sarwoko et al., 2013). ...
... Investigaciones realizadas en otras geografías también han podido evidenciar esta relación. Autores como Man (2001), Ahmad (2007) y Sarwoko et al. (2013) han identificado que las competencias empresariales en áreas clave (oportunidad, organización, compromiso, conceptual, estrategia, relaciones) son un predictor importante del éxito empresarial medido, por ejemplo, como eficiencia en la inversión, crecimiento y rendimiento relativo. De manera interesante, el estudio realizado por Ahmad (2001) encontró que los empresarios con mayor nivel de competencias rindieron mejor que los que tenían menor nivel cuando se enfrentan a entornos hostiles y dinámicos, a diferencia de lo que sucede en entornos más estables. ...
... Therefore, the better or higher the characteristics of entrepreneurial psychology, the higher the entrepreneurial competence. This is in accordance with the research results of Sarwoko et al. (2013), which illustrates that the higher the psychological characteristics, the higher the competence of business actors. Accordingly, to improve entrepreneurial competence, the psychological characteristics of entrepreneurs need to be strengthened. ...
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The income of Micro and Small Culinary Businesses in Banjarbaru in 2015-2019 has increased. Business development can be influenced by entrepreneurial competence and external factors. The purpose of this study was to analyze the effect of individual characteristics and psychological characteristics on entrepreneurial competence, the influence of entrepreneurial competence and external factors on business performance, and the influence of external factors on entrepreneurial competence. This research was conducted using a survey technique. The data analysis tool used SEM. The sample in this study was in the amount of 210. The method of data collection was done by direct interviews and google form through whatssapp respondents. The results of the study showed that entrepreneurs who were tenacious and had high motivation were going to have high entrepreneurial competence. Entrepreneurs having high technical ability had high business performance. Entrepreneurs having many social networks had high business performance. The conclusion of this study was that individual characteristics and psychological characteristics had a positive effect on entrepreneurial competence, whereas entrepreneurial competence and external factors had a positive effect on business performance.
... Senada dengan hal itu Machud & Sidharta (2016) membuktikan bahwa motivasi kewirausahaan berpengaruh signifikan terhadap kinerja UMKM. Sarwoko et.al (2013) membuktikan bahwa kompetensi kewirausahaan berpengaruh signfikan terhadap peningkatan kinerja UMKM di Malang. Demikian pula penelitian Sidharta & Lusyana (2014) yang membuktikan bahwa faktor penentu kompetensi terdiri dari pengetahuan (knowledge), keterampilan (skill) dan kemampuan (ability). ...
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Kesuksesan dalam menjalankan kegiatan usaha yang dilakukan oleh para pelaku usaha kecil sering kali dihadapkan banyaknya persoalan yang dihadapi. Kendala tersebut sering menjadikan para pelaku usaha kecil kesulitan untuk bisa berkembang .Penelitian ini bertujuan untuk menganalisis (1) pengaruh kompetensi kewirausahaan, motivasi wirausaha dan kesuksesan wirausaha secara parsial terhadap kesuksesan wirausaha pada pelaku usaha keripik emping di Kabupaten Kepulauan Selayar (2) pengaruh kompetensi kewirausahaan , motivasi wirausaha dan inovasi bisnis berpengaruh secara simultan terhadap kesuksesan wirausaha pada pelaku usaha keripik emping di Kabupaten Kepulauan Selayar. (3) Mengetahui variabel mana yang paling dominan mempengaruhi kesuksesan wirausaha pada pelaku usaha kecil menengah keripik emping Kabupaten Kepulauan Selayar. Pendekatan penelitian yang digunakan adalah pendekatan kuantitatif. Penelitian ini dilaksanakan pada pelaku usaha emping melinjo di Kabupaten Kepulauan Selayar. Waktu penelitian dilakukan mulai bulan September 2020. Dengan jumlah populasi 62 orang. Hasil dari penelitian ini menunjukkan bahwa (1) terdapat pengaruh positif dan signifikan kompetensi kewirausahaan secara parsial terhadap kesuksesan wirausaha pada pelaku usaha keripik emping melinjo di Kabupaten Kepulauan Selayar (2) terdapat pengaruh positif dan signifikan motivasi wirausaha secara parsial terhadap kesuksesan wirausaha pada pelaku emping melinjo di Kabupaten Kepulauan Selayar (3) terdapat pengaruh negative dan tidak signifikan inovasi bisnis terhadap kesuksesan wirausaha pada pelaku usaha emping melinjo di Kabupaten Kepulauan Selayar (4) terdapat pengaruh secara bersama atau simultan kompetensi kewirausahaan,motivasi wirausaha dan inovasi bisnis terhadap kesuksesan wirausaha pelaku usaha emping melinjo di Kabupaten Kepulauan Selayar
... Over the past decade, Small and Medium Enterprises (SMEs) have been widely discussed by economists and business experts due to their unique characteristics (Islam et al., 2011;Sarwoko et al., 2013;Siddiqui, 2017;Wong et al., 2018), business relations (Lin and Lin, 2016), marketing and business orientation (Amin et al., 2016;Mokhtar et al., 2014), access to finance (Machmud and Huda, 2011;Wellalage and Locke, 2017), business performance (Aziz et al., 2013;Ismanto et al., 2020;Mason et al., 2015;Musah et al., 2018), to the resilience of their businesses from disasters (Auzzir et al., 2018;Fath et al., 2021;Purnomo et al., 2021;Samantha, 2018) and global economic crises (Patiware, 2019;Tambunan, 2020). ...
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The characteristics of SMEs continue to be highlighted, but the exciting thing behind their strengths are acute unresolved problems such as technology skills, human resource management and finance. Borrowing assumptions from resource-based theory, this study tries to examine the effect of technological literacy, working capital, and labour management on the income of SMEs. The sample consisted of 100 SMEs in 14 industries randomly assigned proportionally based on their industry type and filled out the research questionnaire directly. The collected questionnaires were tabulated and analyzed using the Partial Least Square method. The results show that technological literacy, working capital, and labour management positively affect business income individually and simultaneously. These findings record that 45 per cent of the sample do not integrate their products with competitors because they are less skilled in using information media to measure competitors' capabilities. In practice, technological literacy can be transformed for production, administration, and product marketing activities to maximize business income.
... Business Enterprise (SME) on Islamic business values discovered that Islamic personal values of entrepreneurs would affect the entrepreneurial capabilities and thus boost their business performance (Sajilan et al., 2015;Sarwoko et al., 2013;Tomczyk et al., 2013). Furthermore, Dewi and Dhewanto (2012) said that Islamic values such as truthfulness, donation, benevolence, and positive thinking about conflicts as suggested by the Qur'an and Sunnah as the formula to achieve the family business success. ...
... Entrepreneurial competencies play a crucial role (Man et al., 2002, Solesvik, 2012, Sarwoko et al., 2013 in supporting SMEs development and sustainability (Inyang & Enuoh, 2009, Oyeku et al., 2014, Hashim et al., 2018 and driving national development and growth (Godwin & Simon, 2021). Consequently, it is essential to investigate SMEs competencies in Nigeria. ...
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Entrepreneurial competencies play a crucial role (Man et al., 2002, Solesvik, 2012, Sarwoko et al., 2013) in supporting SMEs development and sustainability (Inyang & Enuoh, 2009, Oyeku et al., 2014, Hashim et al., 2018) and driving national development and growth (Godwin & Simon, 2021). Consequently, it is essential to investigate SMEs competencies in Nigeria. Previous research has stated how critical are competencies for SMEs systemic development (Mitchelmore & Rowley, 2010, Solesvik, 2012), particularly in Nigeria, a developing country (Inyang & Enuoh, 2009, James-Unam et al., 2015, Igwe et al., 2018).
... (2017), who discovered that entrepreneurial characteristics significantly affect female entrepreneurs' performance. Sarwoko et al. (2013) found that entrepreneurial characteristics have a significant influence on business performance, as did Mukoffi and As'adi ...
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This study aims to investigate the impact of entrepreneurial motivation variables and entrepreneurial characteristics on the performance of traditional snack entrepreneurs on micro-enterprises assisted by the Cooperatives and MSMEs Office in Medan City, with competence as an intervening variable. The problem that occurs in the decrease of entrepreneurial performance is the phenomenon of training activities that concentrate more on digital financial management and business licenses, resulting in a lack of competence in digital marketing. The compulsion to be an entrepreneur due to the lack of available jobs affects motivation for entrepreneurship and has the characteristic of an innovative personality. A quantitative descriptive method is used in this sort of study. This study is an associative approach with primary and secondary data acquired via a series of questionnaire statements, interviews, and documentation studies. This study used a Likert scale for measurement. This study's population included 94 people. The sample in this study consists of 94 micro-entrepreneurs developed by the Cooperatives and MSMEs Office in Medan City who are at least 18 years old and building members who have been building members for at least two years. Researchers obtain data by distributing surveys using total sampling or saturation sampling approaches. Techniques for data analysis include descriptive statistical analysis and path analysis using Smart PLS software. According to the study's findings, entrepreneurial motivation and characteristics positively and significantly affect competence. Entrepreneurial motivation and entrepreneurial characteristics directly and positively impact entrepreneurial performance. Competency positively and significantly influence entrepreneurial performance. Then, competence, entrepreneurial motivation, and entrepreneurial characteristics positively and significantly affect entrepreneurial performance through competence. Keywords: Entrepreneurial Motivation, Entrepreneurial Characteristics, Competence, Entrepreneurial Performance
... Cavill (2007) 15 Self-efficacy Rauch and Frese (2007), Gundlach and Sammartino (2019) 16 Resources Mobilization Capacity Gallas, Vargas and Lenzi (2015), Timmons (1978), McGrath and O'Toole (2014) 17 Leadership Capacity Simba and Thai (2019), Doğru (2020), Bird (2019), Dunphy (1996), Lim and Wee (1994) 18 Persuasion Kanchana, Divya and Beegom (2013) (2015) 25 Opportunity obsession Chen (2007), Van Zuilenburg (2013), Ardichvili, Cardozo and Ray (2003) 26 Need for affiliation Davis (1999), Lumpkin and Erdogan (2004) (2017) 28 Risk propensity Stewart and Roth (2001), Stewart and Roth (2004), Rauch and Frese (2007), Nishanthi (2014), Timmons (1978), Block, Sandner and Spiegel (2015), Hyrsky and Tuunanen (1999), Stewart et al. (1999), Carland et al. (1984), Jain and Ali (2012) 29 Innovativeness Rauch and Frese (2007), Hyrsky and Tuunanen (1999), Mueller and Thomas (2001) 30 Locus of control Rauch and Frese (2007), Mueller and Thomas (2001), Ganesan et al. (2003), Begley and Boyd (1987), Kantor (1988), Chelariu et al. (2008), Jain and Ali (2012), Carland et al. (1984), Mueller and Goic (2002), Sarwoko, Surachman and Hadiwidjojo (2013), Baron (2007) 31 Conscientiousness Zhao and Seibert (2006), Zhao et al. (2010) 32 Creativity Burns (2012), Kirby (2003), Caird (1991), Thompson and Bolton (2007) Zhao and Seibert (2006), Zhao et al. (2010) 37 Desire for independence Solomon and Winslow (1988), Zampetakis et al. (2015), Chinyamurindi and Shava (2019), Hornaday and Aboud (1971) ...
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There are many studies carried out in many countries about entrepreneurial characteristics over a long period of time. However, there is no consensus among the scholars on a common set of characteristics of successful entrepreneurs in the world. Therefore, in this study it is expected to explore common characteristics that may affect entrepreneurial success. In this study, thirty-one characteristics were taken from literature and they were investigated through 121 entrepreneurs who are into micro, small, medium and large-scale businesses in Sri Lanka. In the hundred and twenty-one sample the entrepreneurs are from micro, small, medium and large. Almost all seminal articles related to entrepreneurial characteristics and traits were taken into consideration in doing the literature survey. The questionnaire of this research has been developed by taking pretested questionnaires on the same phenomenon and a few questions were developed by the researcher. Some modifications were done to the questions in the questionnaire before administering it to the Sri Lankan context. There was more than one question asked in the questionnaire to test one variable. A reliability test had been carried out to see the internal consistency among them and Cronbach's Alpha value was calculated for each variable separately. At the end of the research, it is expected to have two outcomes. They are: first, to see the common list of characteristics which are needed for entrepreneurs to be successful and second; to see the characteristics which are important for micro, small, medium and large-scale businesses to be successful. In deriving the previously mentioned outcomes two types of analytical tools were used. They are: first, to see the common list of characteristics which are needed for entrepreneurs to be successful, One-Way ANOVA technique has been used and second; to see the characteristics which are important for micro, small, medium and large-scale businesses to be successful, descriptive statistics (mean values) were used. Finally, it was found that there are many characteristics which affect the success of entrepreneurs out of the thirty-one characteristics taken for investigation and also different characteristics affect micro, small, medium and large-scale entrepreneurs to be successful.
... Competencies that drive SME competitiveness include opportunity competencies, organizing competencies, relationship competencies, commitment competencies, and conceptual competencies. Meanwhile, entrepreneurial competence has a positive impact on the performance of SMEs (Man et al., 2008;Sánchez, 2012;Sarwoko, Surachman, Armanu, & Hadidjojo, 2013;Tehseen & Ramayah, 2015). Tehseen and Ramayah (2015) also states that knowledge and competence are strategic assets for companies. ...
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Finance was a crucial aspect for the survival of SMEs. This study explored the factors that can influence financial innovation. Data was collected from the results of distributing questionnaires to 285 SMEs using a door-to-door approach and filling assistance. Sampling was based on the proportion of small and medium-sized industries. The data were tested with a series of statistical tests to obtain a suitable regression result. These results indicated that financial innovation was influenced by the owner or manager's entrepreneurial competence. Meanwhile, access to finance and financial planning did not affect financial innovation. Additional funds from outside the company were deemed necessary when the owner or manager of SMEs applies their maximum competence for business growth and performance. Therefore, it forced SMEs to be smart in exploring financial sources. SMEs tent to use their finance access to finance their business operations rather than making financial innovations. SMEs did not think about exploring their finances anymore because they feelt they had enough loans obtained from one institution. Even though the knowledge of SME owner or manager financial planning was quite good; they prefered not to make financial planning and let the cash flow normally.
... Since the work of Boyatzis (1982), the competence method has been widely utilized to analyze management performance, and it has become more commonly employed in the realm of entrepreneurial performance (Teoh and Chong 2007). In their examinations of small and mediumsized business performance, (Ahmad and Halim 2010) and (Sarwoko et al. 2013) both agreed that entrepreneurial skills had a significant effect on company success in SMEs. As a result, defining particular entrepreneur skill requirements remains a popular study subject (Ahmad 2007). ...
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According to empirical studies on women entrepreneurs, women have made significant contributions to the area of entrepreneurship. According to relevant research, entrepreneurial skills have an effect on a firm’s performance. Despite the growing popularity of female entrepreneurs, there are currently few studies examining the relationship between entrepreneurial skills and female entrepreneurs’ performance. A questionnaire-based study of female entrepreneurs was undertaken under the aegis of Amanah Ikhtiar Malaysia. As a result, this research examined the four aspects of entrepreneurial skills-opportunity, organization and leadership, commitment, and personal competencies related to company success. The scales used to assess the above-mentioned variables were adapted from those found in the literature. Although 230 questions had been received by mail, only 184 surveys qualified for analysis. The results indicate that three entrepreneurial skill categories, namely commitment, organization, and leadership, as well as personal, are significantly associated with women entrepreneurs’ company success. According to this research, women entrepreneurs and relevant skills are critical components of women’s business performance. As a result, the purpose of this research is to complement the prevailing body of knowledge about women entrepreneurs and the relationship between their skills and company success. The results are applicable to financial institutions, academics, and women’s micro-enterprises in terms of entrepreneurial financial management, entrepreneurial management, and entrepreneurs’ personality. Apart from that, this research demonstrated the need to further explore the concept of entrepreneurial talents within the context of women entrepreneurs in many ways.KeywordsWomenEntrepreneurEntrepreneurial competenciesBusiness performance
... Self-confidence Timmons (1978), Nishanthi (2014), Gundlach and Sammartino (2019), Baum and Locke (2004) 10 Integrity Timmons (1978), Kuratko et al. (2004) 11 Determination Montagno, Kuratko and Scarcella (1985), Baum (2001) 12 Adopt to change Kisfalvi and Maguire (2011), Aloulou and Fayolle (2005) 13 Networker Elfring and Hulsink (2019) (2017) 28 Risk propensity Stewart and Roth (2001), Stewart and Roth (2004), Rauch and Frese (2007), Nishanthi (2014), Timmons (1978), Block, Sandner and Spiegel (2015), Hyrsky and Tuunanen (1999), Stewart et al. (1999), Carland et al. (1984), Jain and Ali (2012) 29 Innovativeness Rauch and Frese (2007), Hyrsky and Tuunanen (1999), Mueller and Thomas (2001) 30 Locus of control Rauch and Frese (2007), Mueller and Thomas (2001), Ganesan et al. (2003), Begley and Boyd (1987), Kantor (1988), Chelariu et al. (2008), Jain and Ali (2012), Carland et al. (1984), Mueller and Goic (2002), Sarwoko, Surachman and Hadiwidjojo (2013), Baron (2007) 31 Conscientiousness Zhao and Seibert (2006), Zhao et al. (2010) 32 Creativity Burns (2012), Kirby (2003), Caird (1991), Thompson and Bolton (2007) (2007) 35 Autonomy Rauch and Frese (2007) 36 Conscientiousness Zhao and Seibert (2006), Zhao et al. (2010) 37 Desire for independence Solomon and Winslow (1988), Zampetakis et al. (2015), Chinyamurindi and Shava (2019), Hornaday and Aboud (1971) ...
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There are many studies carried out in many countries about entrepreneurial characteristics over a long period of time. However, there is no consensus among the scholars on a common set of characteristics of successful entrepreneurs in the world. Therefore, in this study it is expected to explore common characteristics that may affect entrepreneurial success. In this study, thirty-one characteristics were taken from literature and they were investigated through 121 entrepreneurs who are into micro, small, medium and large-scale businesses in Sri Lanka. In the hundred and twenty-one sample the entrepreneurs are from micro, small, medium and large. Almost all seminal articles related to entrepreneurial characteristics and traits were taken into consideration in doing the literature survey. The questionnaire of this research has been developed by taking pretested questionnaires on the same phenomenon and a few questions were developed by the researcher. Some modifications were done to the questions in the questionnaire before administering it to the Sri Lankan context. There was more than one question asked in the questionnaire to test one variable. A reliability test had been carried out to see the internal consistency among them and Cronbach's Alpha value was calculated for each variable separately. At the end of the research, it is expected to have two outcomes. They are: first, to see the common list of characteristics which are needed for entrepreneurs to be successful and second; to see the characteristics which are important for micro, small, medium and large-scale businesses to be successful. In deriving the previously mentioned outcomes two types of analytical tools were used. They are: first, to see the common list of characteristics which are needed for entrepreneurs to be successful, One-Way ANOVA technique has been used and second; to see the characteristics which are important for micro, small, medium and large-scale businesses to be successful, descriptive statistics (mean values) were used. Finally, it was found that there are many characteristics which affect the success of entrepreneurs out of the thirty-one characteristics taken for investigation and also different characteristics affect micro, small, medium and large-scale entrepreneurs to be successful.
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Micro and small enterprises sector in Kenya is characterized by high mortality rate, three out of five fail within the first few months of operation, over 60% fail each year; and most do not survive to their third anniversary. Despite the significance of entrepreneurial competence in small business, it is not clear the influence of entrepreneurial competence on growth micro and small enterprises. Therefore, this study assessed the effect of entrepreneurial competence on growth of micro and small enterprises in Kiambu County. The specific objectives were; to establish the effect of innovation competency, leadership competency, networking competency, and risk-taking competency on the growth of micro and small enterprises. Descriptive research design was used and data collected from 1274 micro and small enterprises owners or managers. Stratified random and simple sampling was used to arrive at 304 micro and small enterprises. The collection of data was done via questions emailed online by the researcher to micro and small enterprises owners. Descriptive measures and regression analysis were used to explain the relationship between variables. It was discovered that the majority of respondents used various innovative technologies in their businesses, including Mshwari and KCB-Mpesa mobile banking technology. The findings also revealed that majority of micro and small enterprises have adopted various leadership competency facets such as results and performance-based traits, listening and engaging with workers, employee engagement (rewarding and facilitating their wellness), avoidance of unethical behavior (drugs and alcohol abuse), and supporting staff teamwork. As part of their network strategies, the majority of the respondents partnered up with other vendors for joint sales, approached former clients, and created multiple revenue streams. Cautious decision-making, taking manageable risks, careful risk analysis, and measured moves all had an effect on a company's growth. The study concluded that innovation, leadership, networking and risk-taking competencies have a positive and significant effect on growth of micro and small enterprises. The recommendation was that micro and small enterprises should embrace innovation competency as a means of enhancing their development, owners should improve their leadership skills, which, according to the results, is a critical component of firm growth and success, entrepreneurs should accept networking as a means of gaining a competitive edge and should follow risk-taking strategies by making calculated moves in their operations and carefully analyzing the available options in order to maximize their chances of landing on the best option.
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This research performs a systematic literature review (SLR) on entrepreneurial competencies (ECs) through synthesizing the research findings of extant articles. This research applies the PRSIMA method to review selected ECs studies and the work of Garrard (2004) is utilized to construct an SLR matrix to analyze ECs literature in peer-reviewed English publications. It analyzes 174 papers published in 99 journals from 1991 to 2024, providing four major findings. First, there is an extraordinary increasing trend in the ECs field. Second, the most-well known frameworks, theories, and measurements of ECs are demonstrated, which can be leveraged to enhance the competency theory. Third, this research enhances the resource-based view (RBV) theory and the competency theory by creating a nomological network, indicating causal relationships of ECs. Finally, this research gives potential research areas for forthcoming ECs research. These research findings provide important implications for both theory and practice. In a theoretical context, this research offers a comprehensive knowledge of ECs literature and generates new insight for further studies, improving relevant theories, especially the RBV theory and the competency theory. In practice, it generates essential worldwide ECs of both local and international entrepreneurs and their causal relationships, developing both regional and international sustainable entrepreneurship.
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The objective of this chapter is to evaluate the microcredit program and also to examine the influence of several factors related to entrepreneurial capital and human capital of women-owned micro enterprise performance. The primary data were derived from a sample of 380 women entrepreneurs under AIM microcredit program with regard to six hypotheses. The sampling method used was proportionate stratified sampling for data collection. Descriptive and multiple regression analysis were used to analyze the data. The findings reveal that the microcredit program is significantly related to women-owned micro enterprises performance. Entrepreneurial factors have significant positive relationships with women-owned micro enterprises performance. However, factors of religious values and human capital had no significant negative relationship with performance. Future research should consider other factors such as social capital, economic factors, government support, and family involvement.
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This study was conducted with the objective of assessing factors affecting performance of micro and small enterprises in Assosa town. The study identified that the external and internal factors affected performance of MSEs and their existence could improve the normal operation of micro and small enterprises performance. Correlation coefficients revealed a significant positive relationship between performances of MSEs. Variables such as political, legal, financial, marketing, working premises, infrastructural, opportunity seeking, persistence, commitment to the work, demand for efficiency and quality, goal setting, risk taking, information seeking, and self-confidence positively influence performance of MSEs (profit) and significantly affect performance of MSEs. Similarly, for capital, variables such as political, legal, financial, marketing, working premises, technological, opportunity seeking, persistence, commitment to the work, demand for efficiency and quality, risk taking, information seeking, and self-confidence positively influence performance of MSEs (capital) and significantly affect performance of MSEs. In addition, for number of employees; variables such as political, financial, marketing, working premises, opportunity seeking, persistence, commitment to the work, demand for efficiency and quality, information seeking, and goal setting positively influence performance of MSEs and significantly affect performance of MSEs in terms of number of employees. Improving those variables increase performance of MSEs (profit, capital and number of employees). The study recommended that MSEs office could be transparent at the time of allocating the working place to the MSEs, better to design close supervisor of MSEs and linking the MSEs with other private contractors working around Assosa town, support the establishment and strength of business development services. Similarly, the MSEs office could increase the capacity and skill of the operators through continuous trainings, and create linkage with entrepreneurship development center to fill entrepreneurial skill gaps of MSEs of owners/ mangers. Moreover, in order to reduce the influence of external and internal factors on performance of MSEs, policy makers and the service provider institutions need to consider and revise the extent, intensity, and quality of support and their linkages.
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This study analyzes the internal and external factors affecting a small enterprise in Indonesia that distributes information technology (IT) products and services. Utilizing qualitative research methods, the authors collected primary data through interviews with the owners and employees of the company and secondary data through the library and online sources. The internal analysis found that the company's resources can be categorized as intangible and tangible, including skills and knowledge of IT, high-quality products, free consultation services, a loyal customer base, financial resources, and a dedicated physical office. The external analysis applied Porter's Five Forces framework and revealed high threats of new entrants, substitutes, and buyers' bargaining power, as well as a high rivalry among competitors. Recommendations to improve the company's competitiveness and profitability include focusing on intangible resources, diversifying the supplier base, pursuing growth opportunities, and seeking external funding. This study provides valuable insights for small enterprises operating in the highly competitive IT industry in Indonesia.
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Human Resource Management refers to the ability of employees that promotes overall economic and social development, including intellectual and physical employability. Human resources do not mean referring only to the human being but to the competence of the individual. One of the factors that determine economic development is the Interest in Entrepreneurship. Interest in Entrepreneurship can be influenced by Entrepreneurial Competence. Entrepreneurial competence in the form of Managerial skills, Conceptual skills, Human skills, Decision making skills, Time managerial skills. This research was conducted on students of the Management study program, Faculty of Economics and Business, class of 2017 – 2019, Bandung Islamic University. This research used quantitative research methods and descriptive analysis. This study used a questionnaire given to 88 respondents. As well as the purpose of this study aims to examine the Effect of Competence on Interest in Entrepreneurship in Management study program students at the Faculty of Economics and Business class of 2017 – 2019 Islamic University. Research data were processed using the SPSS 23.0 application program. The sampling technique is probability sampling. The results of the study found that Entrepreneurial Competence had a positive and significant effect on Interest in Entrepreneurship with a t-count of 6.152 with a significance value of 0.000 less than a significant level of 0.05. The calculated t value is 6.152, which means that it is greater than the t table value (1.98793) for Students of the Management study program, Faculty of Economics and Business, class of 2017 – 2019, Bandung Islamic University. Abstrak. Manajemen Sumber Daya Manusia mengacu pada kemampuan karyawan yang mendorong perkembangan ekonomi dan sosial secara keseluruhan, termasuk kemampuan kerja intelektual dan fisik. Sumber daya manusia tidak berarti hanya mengacu pada manusia tetapi pada kompetensi individu. Faktor yang sangat menentukan pembangunan ekonomi salah satunya adalah Minat Berwirausaha. Minat Berwirausaha dapat dipengaruhi oleh Kompetensi Kewirausahaan. Kompetensi Kewirausahaan berupa Managerial skill, Conceptual skill, Human skill, Decision making skill, Time managerial skill. Penelitian ini dilakukan pada Mahasiswa prodi Manajemen Fakultas Ekonomi dan Bisnis angkatan 2017 – 2019 Universitas Islam Bandung Penelitian ini menggunakan penelitian metode Kuantitatif dan analisis Deskriptif. Penelitian ini menggunakan kuisioner yang diberikan kepada 88 responden. Serta tujuan dari penelitian ini bertujuan untuk menguji Pengaruh Kompetensi terhadap Minat Berwirausaha pada Mahasiswa prodi Manajemen Fakultas Ekonomi dan Bisnis angkatan 2017 – 2019 Universitas Islam. Data hasil penelitian di olah menggunakan program aplikasi SPSS 23.0. Teknik penarikan sampel adalah probability sampling. Hasil dari penelitian ditemukan bahwa Kompetensi Kewirausahaan berpengaruh secara positif dan signifikan terhadap Minat Berwirausaha dengan hasil t hitung sebesar 6,152 dengan nilai signifikansi yang dihasilkan 0,000 lebih kecil dari level of significant 0,05. Nilai t hitung sebesar 6,152 yang berarti lebih besar dari nilai t tabel (1.98793) tehadap Mahasiswa prodi Manajemen Fakultas Ekonomi dan Bisnis angkatan 2017 – 2019 Universitas Islam Bandung.
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Based on the human capital and social capital theories, this study aims to explore how micro, small and medium enterprises utilize strategic resources to drive growth and competitiveness. Data were collected from 309 micro, small, and medium restaurant owners and managers and two-stage structural equation modelling was conducted to test the hypothesized relationships. The research findings show that the entrepreneur’s/manager’s age and years of work experience are related to firm growth while the entrepreneur’s age is related to firm competitiveness. Accordingly, social capital is directly related to firm growth and competitiveness. Moreover, social capital plays a mediating role in the effect of human capital on firm growth and competitiveness. The study contributes to extant knowledge by extending human capital and social capital theory as well as firm growth and competitiveness literature in the field.
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The objectives of this study were to analyze and investigate the human capital resource of SMEs to achieve the expected level of performance and to see if the quality of human capital had been appropriate enough to be able to apply certain business strategy. This study also intended to see if the cost leadership strategy, differentiation strategy, as well as appropriate focus strategy to improve the performance of SMEs. This study employed a survey design in which researcher conducted a survey to managers or owner of 68 SMEs of Karawo handicraft in Gorontalo city. This study also employed the structural equation or PLS approach using warpPLS application to analyze the data. The finding of this study showed that the ability of the human capital owned by the SMEs had not yet maximized in improving its performance. The role of the mediation business strategy (cost leadership strategy and differentiation strategy) have been appropriate and matched the ability of the human capital to improve the performance of SMEs. The result of this study enriches the body of knowledge related to the resource based theory and the development of strategic management of the human capital investment for the implementation of business strategy to achieve good performance and system. This study also offers practical benefit for managers or owners of SMEs, and government in developing the business. The data were collected using cross sectional strategy by analyzing the opinions and perception of the managers or owners of the business. Future researchers are encouraged to expand this by involving bigger number of sample and broader scope of study. Future researcher may also develop this study using mix method research design to verify and take action on the interesting result of this study related to the implementation of focus strategy based on the ability of the human capital which has been confirmed to have the highest coefficient path, yet did not have significant effect to the improvement of the performance without the involvement of mediational variables such as the combination of focus-cost strategy or focus-differentiation strategy. Keyword : Human capital, business strategy, cost leadership strategy, differentiation strategy, focus strategy, performance, SMEs
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Berdasarkan struktur ekonomi negara Indonesia, Usaha Mikro Kecil dan Menengah (UMKM) memiliki fungsi strategis pada pembangunan ekonomi nasional. Populasi UMKM di Indonesia merupakan pelaku usaha terbesar, berperan tinggi dalam pertumbuhan perekonomian dan penyerapan tenaga kerja, serta dalam mendistribusikan hasil-hasil pembangunan. Pada tahun 2019 jumlah UMKM sebesar 65,5 juta unit, meningkat 1,98 persen dari tahun sebelumnya. Sayangnya walau jumlah UMKM adalah 99 persen dari total usaha di Indonesia, kontribusi UMKM terhadap PDB Indonesia masih relatif rendah. Untuk keberhasilan UMKM, berbagai faktor seperti karakteristik individu dan demografis, kemampuan manajerial dan teknis, kepemimpinan wirausaha merupakan beberapa faktor penting bagi keberhasilan usaha. Atribut individu bersamaan dengan perilaku wirausaha yang dipengaruhi oleh lingkungan yang dapat memenuhi kriteria kinerja yg dirancang secara sosial, merupakan kompetensi wirausaha. Maka kompetensi seorang wirausaha seringkali dikaitkan dengan kinerja usahanya. Dengan demikian, faktor-faktor apa saja yang diperlukan agar dapat membentuk seorang wirausaha kecil dan menengah yang kompeten, sehingga dapat mendukung kinerja usaha kecil dan menengah? Pada Bab ini, akan dibahas mengenai definisi kompetensi kewirausahaan, hubungan kompetensi dengan kinerja usaha, bagaimana membangun model kompetensi yang valid, kompetensi apa saja yang diperlukan wirausaha kecil, dan contoh-contoh kompetensi pada usaha kecil dan menengah di Indonesia.
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The unprecedented COVID-19 crisis has adversely affected enterprise performance, which has led to inequalities, particularly for rural micro-entrepreneurs. Therefore, ensuring business survival through social capital and entrepreneurial skills as coping strategies for the rural micro-entrepreneurs is important to sustain their livelihoods. Both coping strategies can enhance the survival rate during a crisis, but there is limited knowledge on how enterprise performance of rural micro, Small and Medium-sized Enterprises (SMEs) can be improved. This study examined the linkages between social skills, entrepreneurial skills (knowledge, experience), and enterprise performance during a crisis. The Federal Land Development Authority (FELDA) Triangle Village was selected as a proxy for the rural population, and sampling frame of 543 micro-entrepreneurs was obtained from the Local District Office. A total of 150 questionnaires were distributed in a systematic random order based on a minimum sample size of 85 calculated using the G*Power statistical tool. The final 134 usable samples were analyzed using Structural Equation Modelling (SEM). The results ascertained that the direct positive effect of social capital on enterprise performance was significant (β = 0.521, t = 8.060, p < 0.001) and that social capital had a specific and indirect effect on enterprise performance through entrepreneurial skills (β = 0.520, LCL = 0.378, UCL = 0.651, p < 0.001). The study also reported the full mediating effect of entrepreneurial skills on the social capital-enterprise performance relationship. This study proposes practices to develop adaptive entrepreneurs that can adapt to crisis challenges.
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The study aimed to determine if infopreneurship can be an employment option for Library and Information Science (LIS) students and graduates in KwaZulu-Natal (KZN), South Africa. Specifically, it investigated LIS graduates involved in infopreneurship, the requisite competencies, areas of infopreneurship, and challenges. Guiding the research was the interpretive paradigm. Employing a qualitative methodology, the study used the case-study design. Data were collected through triangulation of interviews, content analysis and observations. Non-probability sampling methods were used, i.e., purposive sampling and snowball sampling. A total number of 60 infopreneurs from KZN were interviewed. The results of the study revealed that infopreneurship is practised in South Africa, though a minimal number of graduates from LIS practise it. Furthermore, infopreneurship is constantly developing, as are the infopreneurship activities that infopreneurs can perform. Notwithstanding its challenges, the majority of the infopreneurs identified have been practising it for over five years. These results suggest that infopreneurship can be an option for employment for LIS students and graduates. Ultimately, there is a need for a curriculum review and development to best prepare students to be infopreneurs. Furthermore, there is a need to include infopreneurship policies for the fight against unemployment among graduates.
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Many small and medium enterprises (SMEs) do not often survive beyond five years. The major challenge is the transition from the maturity stage to a sustainable stage. However, apart from a few studies done on SME sustainability with the majority engaged in SME performance, a gap has been identified in the body of literature, especially the exclusion of the mediating effects of key variables. This study, therefore, aims at looking into the mediating role of entrepreneurial innovations on entrepreneurs’ competencies and the sustainability of SMEs in Tanzania. The study applied a cross-sectional design, in which a structured questionnaire was adopted to capture information from 384 sampled SMEs. The study used structural equation modeling (SEM) in doing a confirmatory factor analysis and a path analysis. The findings show that entrepreneurs’ competencies have positive and significant effects on entrepreneurial innovations, and the effects of entrepreneurial innovation on SME sustainability are also positive and significant. The study further found partial mediation effects of entrepreneurial innovations on entrepreneurs’ competencies and SME sustainability. It was found that establishing SME sustainability is the outcome of competencies and innovation. Therefore, this study’s findings can help enrich the limited literature on competencies and innovations and increase the chances of SME sustainability. Further, the current study recommends providing key competence-based training that will help equip entrepreneurs with innovative skills for the sustainability of SMEs.
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The aim of this study was to investigate the correlational and causal relationship between middle school students’ entrepreneurial competencies and science, technology, engineering and mathematics (STEM) attitudes. A total of 648 middle school students (seventh and eighth grade) participated in this study. STEM attitude scale and two entrepreneurial competency scales that were developed in different studies in the literature were used as data collection tools. In addition, a simple regression, a multiple regression and a stepwise multiple regression analysis were executed to analyse the data. The correlational analysis showed that there was a moderate level, positive correlation between the STEM attitudes of students and their overall entrepreneurial competencies. Also, the multiple regression analysis showed that entrepreneurial competencies consisting of professionalism, risk-taking, creativity and tenacity explained 41% of the change in STEM attitude. The stepwise multiple regression analysis indicated that professionalism predicted the most the STEM attitude statistically more.
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The aim of the research was to test empirically the relationships among personal values of owner/managers, the strategies they adopt in operating their businesses, and the performance of their businesses. The research fills gaps in empirical research on strategy and strategic management in small firms. Unlike in existing research, a holistic approach to strategy is adopted. Data for the research were obtained from a mail survey of small furniture manufacturers. The sample was divided into clusters using Ward's minimum variance method. Differences among the clusters with respect to personal values, strategies, and performance were examined by multivariate analyses of variance using deviation contrasts. It was found that certain profiles of personal values correspond with certain strategic orientations. In conformity with previous research, an association between business strategy and enterprise performance was confirmed. Recommendations are made in the areas of government policy delivery, and financial and management assistance to small firms.
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This study analyzes strategic factors that can influence the performance of small and medium size enterprises (SMEs) in the Malaysian manufacturing sector. The conceptual framework is developed based on the distinctive capabilities and the performance of the SMEs. This study is based on a sample survey of 121 SMEs in the manufacturing sector. Using structured questionnaires, the data is collected by mailing as well as interviews with owner-managers of the SMEs. Using the Statistical Package of Science Social (SPSS) program, the analyses were made to show the relationship between the distinctive capabilities and the performance of SMEs. The findings indicate that there is a significant relationship between distinctive capabilities and the performance of SMEs.
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In this study we examine the contingency value of entrepreneurial strategy making with a sample of technology-based new ventures in China's emerging economy. Our results show that the relationship between entrepreneurial strategy making and performance is moderated by both environmental factors and firm competences. Specifically, entrepreneurial strategy making has a positive relationship with performance when the environment is highly uncertain and when the firm has strong marketing competences.
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Purpose The purpose of this research is to empirically test the impact of owner/managers' mentality on enterprise performance . Design/methodology/approach A mail questionnaire survey was conducted on a sample of SMEs in Japan. The questionnaire was mailed to the chief executive of each of the 1,523 firms selected for the survey. The total number of usable responses received was 367, giving a response rate of 24.1 per cent. Findings The overall results of the study show that when owner/managers of SMEs are more entrepreneurial minded in the introductory and decline stages of growth, their performance tends to be higher, and the same is true for the growth and maturity stages when they are more administrative minded. Research limitations/implications Since this research was unique in several respects and the survey was confined to only 367 SMEs in a single country it would be useful to replicate it using larger samples under different country settings. Practical implications The research reveals that an enterprise will be better off at the introductory stage if its managers become more entrepreneurial minded through factors such as ambition, enterprising spirit, intuition and innovation. However, as the firm grows managers need to devote more attention to administration. Originality/value It provides far reaching implications for managers for achieving higher performance in different stages of a firm's growth.
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In order to thrive, small businesses are often advised to develop relationships with external organizations that have the potential to assist business development, survival, and growth. A focus on the external relationships of the small business underlines the vital importance of external resources in moving a small business toward increased success and profitability. Covering the period from 1990 to 2002, this paper reviews the small business literature as it relates to the use of these external relationships (such as organizational partnerships, networks, and alliances). In response to both academic and practitioner demand for further research in this area, an exhaustive analysis of the relevant literature was conducted and three “meta” research questions representing the connections within this literature were formed. The resource-based view of the firm, resource dependency theory, and punctuated equilibrium theory are proposed as useful starting points for exploring these research questions and can give direction for moving forward in this research area.
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This paper analyzes from a resource-based view the management characteristics of Spanish small and medium enterprises (SMEs) according to their strategic orientation and the consequences in terms of firm performance and business efficiency. The typology of strategies formulated by Miles and Snow has important implications for management, because depending on the strategic orientation adopted—defender, prospector, or analyzer—the firm can emphasize to a great extent some aspects of management, such as technological position, innovation, organizational design, and human resource management. Moreover, these aspects of management can largely determine firm performance and business efficiency. A sample of 1,351 Spanish SMEs provided the data for an empirical test of these issues. The results confirm the expected relationships, revealing, on the one hand, significant differences between prospector and defender SMEs regarding the key factors on which they base their management characteristics and, on the other hand, the different influences that each strategic orientation has on firm performance.
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Environmental scanning is generally viewed by strategic management scholars as a prerequisite for formulating effective business strategies. Moreover, effective scanning of the environment is seen as necessary to the successful alignment of competitive strategies with environmental requirements and the achievement of outstanding performance. This study of small manufacturing firms competing in a wide variety of industries examines the effect of the frequency and scope of environmental scanning on environment-competitive strategy alignment. Results suggest that obtaining information on several aspects of specific environmental sectors (for example, customers, competitors, suppliers) facilitates alignment between some competitive strategies and environments (that is, industry life cycle stages) whereas the frequency of scanning has no effect on such alignments.
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Purpose The context of Hong Kong has nurtured numerous small‐ and medium‐sized enterprises (SMEs) in which the owner/managers have exhibited rather consistent set of characteristics over decades despite shifts in the industrial structure. The purpose of this paper is to investigate how such characteristics can sustain in different industrial environments. Design/methodology/approach By using the competency approach on a sample of 153 SME owner/managers in the wholesale trade and IT services industries, we conducted hypothesis testing on comparing first, the overall rankings of ten competency areas for SME owner/managers, and second, the ratings of individual competency areas between the two industries. Findings While there are consistent patterns of competencies across these two contrasting industries in Hong Kong, the owner/managers in IT services industry have significantly higher ratings in innovative, strategic and learning competencies than those in the wholesale trade industry. Research limitations/implications Entrepreneurial competencies are not only stimulated or sharpened by the requirements of different industrial environments, but also rooted in the common socio‐cultural background of the owner/managers. Practical implications With the ever closer economic and socio‐cultural integration with China, a completely new pattern of entrepreneurial competencies may be required in a new context of entrepreneurship in Hong Kong. Originality/value The application of the competency approach allows us to investigate the respective impacts of industrial and socio‐cultural factors in the development of entrepreneurial characteristics, particularly those about Chinese SME owner/managers in Hong Kong.
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Purpose The purpose of this article is to evaluate the effect of entrepreneurial competencies and the moderating effect of business environment on business success in small and medium sized enterprises (SMEs) in Malaysia. Design/methodology/approach A sample of 212 Malaysian SME owner‐founders participated in this study. The structural equation modeling (SEM) procedure was used to test the proposed model. Findings The results showed that entrepreneurial competencies were strong predictors of business success in SMEs in Malaysia. It was also found that the association between entrepreneurial competencies and business success was more strongly evident in hostile and dynamic environments than in more benign and stable environments. Research limitations/implications Self‐report was used as the source of all data. This approach, even though criticised by some, was deemed necessary because of difficulties associated with the independent assessment of each of these variables. Nevertheless, future studies should identify ways to obtain competency data from multiple informants to minimise the possibility of response bias. Practical implications It was suggested that understanding business success through the lens of entrepreneurial competencies is important because it provides entrepreneurs with knowledge about the way they should operate their business and encourages them to be conscious of the potential positive or negative impacts of their own behaviour. Originality/value The study shows that entrepreneurs are capable of minimising the negative impact of business environment if they are willing to equip themselves with the appropriate competencies.
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This paper reviews and evaluates the academic literature on how entrepreneurial performance depends on the characteristics of entrepreneurs and entrepreneurial teams. A number of conceptual and methodological issues in the study of entrepreneurial performance are discussed. Reviews of published and unpublished work suggest that factors such as education, industry experience, managerial experience and prior entrepreneurial experience are positively associated with venture performance. There is some evidence that traits such as tenacity improve performance.Emerging research on the role of social capital and entrepreneurial founding team composition is also reviewed. However, many of the conclusions from prior research should be treated with caution, as the literature generally is characterized by a number of methodological shortcomings. Chief among these is that most studies restrict their analyses to samples of new ventures, which makes the observed associations between variables difficult to interpret. This has important implications for both researchers and policy makers, and suggests that the study of entrepreneurial performance could benefit from the development of a rigorous and systematic research program to identify the drivers of entrepreneurial performance as a distinctive economic activity.
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This study investigates the effects of entrepreneurial personality traits, background and networking activities on venture growth among 168 Chinese entrepreneurs in small and medium sized businesses in Singapore. Personality traits include need for achievement, internal locus of control, self-reliance and extroversion; background comprises education and experience; networking activities consist of size and frequency of communication networks. A structural equation modelling technique – partial least squares (PLS) – is used to estimate a path model with latent variables. The results indicate that experience, networking activities, and number of partners as well as internal locus of control and need for achievement all have positive impact on venture growth. Two other personality traits, self-reliance and extroversion have negative impact on number of partners and positive impact on networking activities, respectively. The impact of education on venture growth, however, is moderated by firm size, positive for larger firms and negative for smaller firms. Our findings indicate that among all the factors that we have considered, an entrepreneur’s industrial and managerial experience is the dominating factor affecting venture growth.
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Venture capitalists, “angel” investors, and experienced, successful entrepreneurs, when asked to identify the most important determinant of new venture performance, will undoubtedly answer “the entrepreneur.” Likewise, prominent academic scholars responsible for the accelerating development of entrepreneurship theory and research would almost always agree. Unfortunately, empirical and theoretical understanding of the influence of the entrepreneur on new venture performance (NVP) has long been stymied. Studies of entrepreneurial characteristics have failed to demonstrate convincing links with entrepreneurial states of being or with NVP, though studies of the former have shown more promise than have those of the latter. In an attempt to explain the failure to link entrepreneurial characteristics with performance and thus to stimulate and modify research agendas, this paper derives a structural, causal model of the relationships between entrepreneurial characteristics and performance. This derivation draws upon current psychological, management, economic, and entrepreneurship theory.
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By drawing upon the concept of competitiveness and the competency approach, a conceptual model is developed to link the characteristics of small and medium-sized enterprises' (SMEs') owner–managers and their firms' performance together. The model consists of four constructs of competitive scope, organizational capabilities, entrepreneurial competencies and performance. The central focus of the model is the three entrepreneurial tasks that link different competency areas with other constructs of competitiveness. Propositions related to these relationships are made. The model suggests further research in different competency areas, interindustry comparisons, and validating studies.
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Entrepreneurial competencies as an entrepreneurial distinctive: An examination of the competency approach in defining entrepreneurs
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Effective and efficient use of resources ultimately determines the overall performance of the organization. In this way performance of the organization depends on how the management of the organization drafting their strategies and implement practices for all organization to handle the resources in effective and efficient manner. These practices are determined by the entrepreneurial characteristics. Entrepreneur to Entrepreneur, the characteristic vary and their practices also vary. It is therefore important to understand the relationships between the entrepreneurial characteristics and organizational performance. This paper will help to understand to what extent the entrepreneurial characteristic can go to determine the Business performance. Even though there is number of views and ideas broadening the concepts of managing business successfully. Therefore this study will contribute to enrich the knowledge in the field to somewhat extent. Thus the paper is focused to analyze the “Relationship between owner-manger’s characteristics and business performance. Cooper (1998) that there is an empirical relationship between the business founding processes of entrepreneurs and the performance of their businesses. The result also support kotey’s and Meredith’s (1997) broad finding that the personal values of owner /managers, the strategies they adopt in operating their firms, and the performance outcomes of their businesses are empirically related. Based on the empirical research, there is positive relationship between owner manger’s characteristics and Business Performance.
Article
Sumario: I. Case analysis: appliying the strategic management process. The case method. Guidelines for analyzing cases. The case preparation process. Reporting your recommendations -- II. Cases on entrepreneurial organizations -- III. Cases on international/multinational organizations -- IV. Cases on manufacturing organizations -- V. Cases on service and not-for-profit organizations
Article
Many have suggested that the type of individual who becomes an entrepreneur is psychologically distinguishable from the type of individual who becomes a manager. Moreover, it has been argued that within these occupations men and women are fundamentally different. This paper discusses a study that evaluated the accuracy of these characterizations by comparing the personal value systems of men and women entrepreneurs and managers. This information should prove useful to a variety of audiences.First, individuals exploring career alternatives can evaluate the appropriateness of entrepreneurial and managerial careers for themselves by determining whether or not their own value systems match those of individuals already in these roles. Second, venture capitalists, bank loan officers, and individuals in organizations who are in positions to support women's entrepreneurial and managerial pursuits will be able to determine whether or not women and men in these roles are “made from the same cloth” and thus deserve the same consideration. Third, the current research will also shed some light on the compatibility of the entrepreneurial and managerial roles, a role transition that entrepreneurs make as their businesses mature. Finally, by studying the values of individuals in these two fields an assessment of the basic nature of these individuals can be made.Two hundred fifty-five men and women entrepreneurs and managers rank-ordered 15 terminal (desired end states) and 15 instrumental (methods used by individuals to achieve desired end states) values using a modified version of the Rokeach (1973) Value Survey. The results of the study revealed that individuals' gender had very little influence on their value systems. Women valued the terminal value of equality more than men, and men valued “family security” more than women. In contrast, managers and entrepreneurs had vastly different value systems. Entrepreneurs gave significantly greater weight than managers to the following terminal values (listed from most to least important): self-respect, freedom, a sense of accomplishment, and an exciting life, and the following instrumental values (listed front most to least important): being honest, ambitious, capable, independent, courageous, imaginative, and logical. In contrast, managers gave greater weight than entrepreneurs to the terminal values of (listed from most to least important): true friendship, wisdom, salvation, and pleasure, and the instrumental values of (listed from most to least important): being loving, compassionate, forgiving, helpful, and self-controlled.The results of the present study suggest that entrepreneurs want something different out of life than managers. Whereas the latter prefer to enjoy the pleasures that life has to offer, entrepreneurs want to be free to achieve and actualize their potential. Overall, it appears that knowing whether an individual is an entrepreneur or a manager appears to be a better indicator of his/her values than knowing whether an individual is male or female. These results suggest that men and women who become entrepreneurs or, alternatively, secure jobs in the management profession, are more similar to members of the opposite sex within their profession than they are to members of their own sex in a complementary profession. These findings suggest that customers, subordinates, superiors, bank loan officers, and venture capitalists—or in other words, anyone who is involved with men and women entrepreneurs or managers—should be careful not to categorize them according to traditional sex-role stereotypes. As was demonstrated here, these stereotypes are not applicable across the board. Moreover, previous research has shown that they can result in sex discriminatory decisions.Finally, once a business is well underway, managing the operation becomes central to its success. The results of the present study suggest that this change in role emphasis may not be satisfying to the entrepreneur, because the value system of individuals who are committed to the managerial role is at odds with the value preferences of entrepreneurs. This may help explain why many entrepreneurs become less interested and motivated in their ventures once the entrepreneurial component of their job is overtaken by the management aspect.
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