Determinants of Entrepreneurial Competencies Development in Small and Medium Enterprises

Abstract

This paper is to investigate the impact of key factors that influence the development of entrepreneurial competencies in Malaysian SMEs, both in the manufacturing sector and services sector. This is vital because the economy of Malaysia is partially depending on the contribution of SMEs and the roles played by SMEs. The statical sample population of this research includes 407 owners and manager involved in SMEs. For data collection, a standard questionnaire using seven-point Likert scale and 72 items were used to evaluate 12 entrepreneurial competencies and four items that influence the development of entrepreneurial competencies. Data were analyzed using SPSS version 21 and SEM-Amos version 21. The results confirmed, education was significantly affecting the development of entrepreneurial competencies among entrepreneurs, while the training before business set-up, training after business set-up and work experience have no effect on the development of entrepreneurial competencies. The results contributed to the development of theoretical contribution and knowledge base, as well as offering results that will be of interest to research and policy communities. The results are limited to quantitative, using cross-sectional data. The direction for future research are also suggested.