Entrepreneurial competencies and the performance of small and medium enterprises: An investigation through a framework of competitiveness

As an attempt to investigate the relationships between entrepreneurial characteristics and firm performance, we operationalized a theoretical framework of the competitiveness of small and medium-sized enterprises (SMEs) and empirically tested the four hypotheses derived from it. The framework links together entrepreneurial competencies and SME performance with two further constructs: competitive scope and organizational capabilities. The empirical study consisted of a stage of instrument development specific to the research context, as well as a stage of hypothesis testing. The results of hypothesis testing, involving a sample of 153 owner/managers of SMEs, provided evidence for the direct and indirect contributions of the entrepreneur’s opportunity, relationship, innovative, human and strategic competencies in affecting the long-term performance of an SME via competitive scope and organizational capabilities. This initial success, with the validated survey instrument of entrepreneurial competencies, may serve as the ground for further research in this area. Copyright © 2008 Canadian Council for Small Business and Entrepreneurship/Conseil canadien des PME et de l’entrepreneuriat (CCSBE/CCPME).