Influence of entrepreneur competencies on profitability and employee satisfaction

Abstract

This study shed light on the impact of entrepreneurs’ competencies on profitability and employee satisfaction. We used surveys conducted on 200 micro firms operating in Ghana. We used both descriptive and regression to analyse the link between entrepreneur competencies, employee satisfaction and profitability. The data from 150 participants suggest that entrepreneur competencies have a positive and significant effect on profitability. Additional, entrepreneur competencies have a positive and significant impact on employee satisfaction. Our findings clarify the role entrepreneur competencies play in enhancing profitability and employee satisfaction in the emerging market context. Drawing on resource-based view, the paper addresses the ‘human element’ in entrepreneurship, thus enriching entrepreneurship debate, especially in Ghana. Entrepreneurs have better understanding of the importance of competencies on their firm profitability and employee satisfaction. The authors concluded that entrepreneurs need robust competencies that can foster superior profitability and boost employee satisfaction level.