Impact of entrepreneurial knowledge, skills, and competencies on MSME performance: an evidence from a developing country

Abstract

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.