Entrepreneurial Competencies and SMEs’ Performance in a Developing Economy

Md. Nazmus Sakib, Mustafa Raza Rabbani (), Iqbal Thonse Hawaldar, Mohammad Abdul Jabber, Jubait Hossain and Mohammad Sahabuddin
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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

Sustainability, 2022, vol. 14, issue 20, 1-18

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.

Keywords: entrepreneurs; entrepreneurial competencies; performance of SMEs; Bangladesh; SmartPLS; partial least square structural equation modeling (PLS-SEM) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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