Assessing the Impact of Entrepreneurial Competencies on Small Business Performance

Abstract

The linking of entrepreneurial characteristics with the business success has been the primary area of research in the field of entrepreneurship. The focus of the present study was to highlight the importance of the entrepreneurial competencies of the entrepreneur required for the effective performance of the overall firm. This was done by testing the impact of entrepreneurial competencies on firm performance among the manufacturing firms operating in the state of Jammu and Kashmir in India. To analyze the effects of independent variables on the dependent variable, structural equation modeling procedure was employed using partial least squares approach. The findings of study revealed that the entrepreneurial competencies exhibit a strong impact on the performance. The current study assumes vital importance in terms of its contribution towards the literature highlighting the importance of the human capital in small businesses. The research output has training implications for the educators and policy makers.