Entrepreneurial Skills and Performance of Small and Medium Enterprises in Bukedea Town Council

Abstract

The study was about entrepreneurial skills and performance of SMEs in Uganda a case study was Bukedea Town Council., Bukedea district. The major purpose of this study was to identify the relationship between entrepreneurial skills and performance of SMEs in Uganda. The study was guided by three set objectives: effect of entrepreneurial skills on performance of SMEs; Relationship between entrepreneurial skills and performance of SMEs in Uganda; identify various entrepreneurial skill that impact on SMEs in Bukedea Town Council. The research design used in obtaining primary data included: self-administered questionnaire, secondary data was obtained through secondary data sources; internal Reports. A sample of 52 respondents was taken from the population of 60 respondents in Bukedea Town Council and the sampling technique was simple random sampling. Descriptive data analysis was used Findings reveal that the effect of entrepreneurial skills on performance of SMEs show entrepreneurial skills explain the variation in the service delivery up to 10%, and remaining 90% are for other factors, and influence service delivery by 31.6% shown by Beta = 0.316 and the strength is high at Sig=0.023:Relationship between entrepreneurial skill and performance of SMEs, The results reveal that there is a strong positive relationship based on Pearson correlation (r=0.572) at a significant level of 1%. This means that an increase in entrepreneurial skills by 1performance of SMEs will increase by 0.572. If entrepreneurial skills increase by 100 then performance of SMEs will increase by 57.2% Conclusively entrepreneurial skills significantly improve on the performance of SMEs, both in terms of effectiveness and efficiency, financial controls and reporting that save guards both assets and liabilities of SMEs. The study highly recommends that entrepreneurial skill a fundamental tool and engine to be used by SMEs if they are to survive and develop into large business.