EFFECT OF ENTREPRENEURSHIP COMPETENCIES ON PERFORMANCE OF SELECTED SMEs IN NASARAWA STATE, NIGERIA

Abstract

Entrepreneurship and small and medium-sized enterprises (SMEs) are crucial for driving economic transformation and development in Nigeria. However, SMEs consistently fall short of expectations, struggling to achieve their potential impact on the economy. This study investigated the effect of entrepreneurial competencies on the business performance of SMEs in Nasarawa State, Nigeria, using a sample of 347 SMEs and a structured 5-point Likert scale questionnaire for data collection, analysed with Smart PLS-SEM. The study identifies personal competency, technical competency and managerial competency as significant drivers influencing business performance. While proactive competency does not show a significant effect, the study advocated for a proactive business strategy, urging SMEs to stay attuned to market dynamics and engage in scenario planning. The study recommended tailored interventions for SME owners to enhance personal competencies, emphasizes the importance of leadership development and strategic planning for managerial competency, and stresses the continuous development of technical skills to ensure SMEs' competitiveness in the dynamic business landscape of Nasarawa State, Nigeria.