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Entrepreneurial Competencies and SMEs’ Performance in a Developing Economy

Author

Listed:
  • Md. Nazmus Sakib

    (Department of Management, University of Dhaka, Dhaka 1000, Bangladesh)

  • Mustafa Raza Rabbani

    (Department of Economics and Finance, College of Business Administration, University of Bahrain, Sakhir 32038, Bahrain)

  • Iqbal Thonse Hawaldar

    (Department of Finance and Accounting, Kingdom University, Riffa 40434, Bahrain)

  • Mohammad Abdul Jabber

    (Department of Management, University of Dhaka, Dhaka 1000, Bangladesh)

  • Jubait Hossain

    (School of Business & Entrepreneurship, Independent University Bangladesh, Dhaka 1229, Bangladesh)

  • Mohammad Sahabuddin

    (Faculty of Business Administration, University of Science and Technology, Chittagong 4202, Bangladesh)

Abstract

This paper aims to empirically test the impact of entrepreneurial competencies on the performances of SMEs in Bangladesh. The data are obtained from 115 entrepreneurs by a structured questionnaire. The partial least square structural equation modeling (PLS-SEM) method is applied to find the causal relationship between exogenous and endogenous variables. The results reveal that the organizing and leading, learning, relationship, and commitment competencies of entrepreneurs have a meaningful impact on SME performance. On the contrary, strategic and opportunity competencies have no effect on the performance of SMEs. The contribution of this study is to find out the relevant entrepreneurial competencies and to empirically test their impacts on the performance of SMEs in a developing country setting. This study gives insights into the policymakers regarding the entrepreneurship training and development program. Finally, the competency measurement of this study provides a unique scope for designing such training and development programs for entrepreneurs.

Suggested Citation

  • Md. Nazmus Sakib & Mustafa Raza Rabbani & Iqbal Thonse Hawaldar & Mohammad Abdul Jabber & Jubait Hossain & Mohammad Sahabuddin, 2022. "Entrepreneurial Competencies and SMEs’ Performance in a Developing Economy," Sustainability, MDPI, vol. 14(20), pages 1-18, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13643-:d:949458
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    References listed on IDEAS

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