ANALYSIS OF ENTREPRENEURIAL COMPETENCIES AND IT INFLUENCE ON THE SUCCESS OF SME IN NIGERIA
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BACKGROUND OF THE STUDY
In the globe, small and medium-sized enterprises (SMEs) make up more than 90 percent of all firms, are responsible for more than 50 percent of all employment, and produce more than 50 percent of all gross domestic products (GDP). According to Roldan (2015), the majority of companies operating in Africa are classified as SMEs. The firms provide a major contribution, amongst other things, to the creation of job opportunities, the accumulation of capital, the maintenance of economic viability, and the reduction of poverty. Today, Africa's expanding economy views small and medium-sized businesses (SMEs) as the vehicle for attaining both growth and excellence. However because of the crucial part they play in ensuring the continued growth of economies throughout the globe, small and medium-sized businesses, often known as SMEs, are widely regarded as the most important component of today's modern economy (Carter and Tamayo, 2017).
According to Ganyaupfu (2013), the industry is responsible for a significant number of jobs and contributes to the expansion of the economy. As an illustration, in Ghana, this industry accounts for 92% of all enterprises in the nation (Steel and Webster, 1991). In South Africa, small and medium-sized enterprises (SMEs) make up 91% of all registered business organization. Furthermore, these enterprises account for between 52% and 57% of the country's GDP. However, in Nigeria, a number of issues have overtaken the nation's economic milieu, which not only makes the climate challenging for business but also contributes to the growing number of small and medium-sized enterprises (SMEs) that fail in the country. According to the findings of several studies, 85 percent of companies in this nation do not make it through the first five years after they have opened for business (Mead, & Liedholm, 2018, Ogboru, 2005; Olu and Haynes, 2006; Ariyo, 2008). Furthermore, even the small number of businesses that are successful in being in operation for longer than five years are likely to fail between the sixth and tenth years of their existence, leaving just around 5 to 10 percent of all SMEs still operational (Onugu, 2005). In spite of the efforts and investments made by the government of Nigeria toward the growth of small and medium-sized businesses (SMEs), just 7.27 percent of the country's total exports are contributed by firms of all sizes, including microbusinesses (SMEDAN, 2018). It has been determined that the primary reason for the failure of businesses across the country is a lack of abilities related to entrepreneurship (Inyang and Enuoh, 2009). Therefore, an entrepreneurial skill is required since it is the only way to offer concrete answers to the question of why businesses fail (Sánchez, 2053).
Importantly, one of the key aspects that determines whether a firm will be successful, perform well, and develop or if it will fail is the level of competence of its owners and operators (Fishbein & Ajzen 2015). In addition, the majority of enterprises run by female entrepreneurs are considered to be of the small-scale variety, which means that the success of the business is mostly dependent on the capabilities of the owner. Therefore, it is extremely vital to have a knowledge of the nature of such abilities in the context of female entrepreneurs A cluster of knowledge, behaviours, skills, and talents are included in the definition of competencies. Competencies are the traits of entrepreneurs that separate exceptional entrepreneurial success from average or bad entrepreneurial performance (Wu, 2011; Athey and Orth, 1999). In a similar vein, Man, Lau, and Chan (2002) regard entrepreneurial competences as nothing more than a collection of high-level qualities that comprise both knowledge and personality traits. These high-level characteristics include knowledge, skills, and attributes. The development of entrepreneurial abilities paves the way for businesses to acquire a durable edge over their competitors, which in turn leads to the attainment of commercial victory and expansion (Man et al., 2002). Tehseen and Ramayah (2015) emphasised the need for a better understanding of the significance of entrepreneurial competencies, particularly in economies that are still in the process of developing. This is because the competencies of entrepreneurs are essential to the survival, performance, and success of businesses. The measurement of entrepreneurial abilities, on the other hand, varies significantly depending on the context, forecast, and assumption (Mitchelmore and Rowley, 2010).
According to the findings of a large number of academics, the leading obstacles related to competencies that lead to poor performance and the failure of businesses in Nigeria are a lack or ineffective innovation, unfavourable marketing strategies, and a lack of distinctive entrepreneurial traits. This was established in the Nigerian business environment (Duru, 2011; Eneh, 2010; Onugu, 2005; Adeoti, and Adeoti, 2005; Siyanbola et al., 2012).
Therefore, the primary objective of the study is to investigate the connection between entrepreneurial skills and the level of commercial success experienced by small and medium-sized enterprises (SMEs) operating in a variety of contexts throughout a single nation.
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