MANAGERIAL SKILLS AND PERFORMANCE OF SMALL AND MEDIUM

ENTERPRISES IN SOUTH DIVISION, KUMI MUNICIPALITY

BY

KWAPI JAMES

REG. S16/BUW/BEPP/034

A RESEARCH PROPOSAL SUBMITTED TO THE DEPARTMENT OF BUSINESS IN

THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE A WARD
OF BACHELLOR’S DEGFREE IN ENTERPRENUERSHIP AND
PROJECT PLANNING OF UGANDA CHRISTIAN
UNIVERSITY, MBALEUNIVERSITY
COLLEGE

DECEMBER, 2021
 CHAPTER ONE
INTRODUCTION

1.0 Introduction
This chapter highlights the background of the study, problem statement, purpose of the study,
research questions, scope of the study, significance of the study, justification of the study, and
the conceptual frame work.
1.1.0 Background of the Study
1.1.1 Historical perspective
Conceptually, managerial skills are highly allied with the performance of SMEs both financially
and management wise since their performance is related to how these enterprises effectively use
mobilize resources, manage external debt as well as maintain proper records with fully
accountability. Therefore, this requires specific competences and skills in book keeping, working
management as well as financial planning among others (Ittner & Larcker, 1998).

The evolution of market economies has dramatically broadened the opportunities of consumers,
workers, investors, and firms to get engaged in multiple business. Business environment has
become increasingly complex generating from one single enterprise to industrial and
multinational firms as it is stretched way back from the industrial revolution era. This also led to
the emergence of Small and Medium Sized Enterprises as well as large corporations operating
across the borders and overseas (Turyahikayo, 2015) depending on each firm’s financial and
managerial capabilities. Still most of these SMEs performance was viewed along the full
proportions of financial, strategic and structural development. Development partners and
governments have of recent made financial services become free and accessible, however, they
must understand their investment choices and decisions and likely repercussions of each
alternative choices.

The socioeconomic function performed by SMEs is widely known in developing and emerging
countries. But, in recent times, developing and developed nations have become more and more
concerned about the entrepreneur level of managerial skills who engages in any venture o
business looking at whether he or she has the competence, skills and knowledge on how to run
business especially in areas of budgeting, record keeping, savings as well managing both internal
and external debt (Dewi & Rahman, 2018a).
USA established a consumer financial protection bureau that is mandated to promote financial
knowledge and skills in assisting SMEs managers and owners in making right financial
decisions. Also, in India, the government established financial stability and development council
(FSDC) with responsibilities of educating and counselling entrepreneurial and individual on
different sources of financing initiatives so as to enhance their performance.

Uganda has been cited among developing countries which are populated with Small and Medium
Enterprises (World Bank Group, 2018). These enterprises have been praised to be dominant
players in instituting economic stability as well as playing key role in developing private sectors
in Uganda. There has been Substantial financial support from both government and other
development for example an African Guarantee fund worth US$ 30 million aiming at supporting
African SME sector as well as fund support extended by the government through presidential
initiatives to support Small and Medium Enterprises (MoFPED/UNPF, 2017).

In addition to this financial support from the various development agencies, there has been also
emergence of financial institutions for instance commercial banks and micro finance institutions
in almost all parts of the country and these have also led to easy accessibility of funds by these
enterprises easily (BOU,2013). However, Kasekende (2018) explained that majority of these
SMEs fail to perform financial as evidenced by the high solvency rate as most of them fail to
celebrate their second birthday due to misappropriation and mismanagement of their financial
resources and all this is a true indicator of limited knowledge on how to manage financial matters
of enterprises.

In Uganda, these SMEs have seen emerging majorly early 1990s when there was reduction in
political insurgencies. however, they have failed to thrive through the changing economic
environment and therefore most of them collapse in few years after and others face a challenge
of started growth due low performance inform of limited sales growth as well as profitability
threatening their long-term survival. This has been attributed to limited knowledge and
competence on how to make effective managerial decisions about use of money or financial
resources (BOU, 2013). Therefore, the purpose of this study is to examine the effect of
managerial skills on performance of SMEs.
The study context is SMES in Uganda according to UIA Report (2018), these enterprises
contribute over 90% of Uganda’s private sector and their contribution per sector stands at 49% in
service sector, 33% in commerce and trade, 10% in manufacturing and a small portion of these
enterprises at 8% in other. These SMES are a key driver in strengthening and fostering wealth
creation, innovation as well as job creation for the increasing young population. However,
majority of these enterprises in Uganda fail to persist for more than two years in operation
(MoFPED/UNPF, 2017) regardless of substantial financial support received from the
government, financial institutions and other outside development partners.

However, in Uganda Many times these facts are underestimated by small entrepreneurs and
overlooked by support programs for development of this size of entrepreneurship. Small
businesses, as part of small and medium enterprises (SME), form considerable part of state
economy and they are also considered an important source for development of economy.
Therefore, development and support programs for small enterprise should focus on the area to
help in skills and knowledge. Papula, J. (2014) argued that Small enterprises are part of larger
category of small enterprises and medium enterprises. They all together form 98.8% of all
companies in Uganda. They are considered to be the engine for society development.
1.1.2 Theoretical perspective
1.1.2.1 Goal Setting Theory
This is a motivation theory which was developed by Hollenbeck and Klein (1987). It is grounded
on a logic that well clear, smart and measurable goals do drive organizational results. Basing on
this theory, the organizational and task performance is always linked with how it sets its goals.
The theory further explains that specific, measurable, attainable but challenging goals set
together with streamlined feedback contribute to better task performance.

Locke and Latham (2011) find that individual goals are likely to determine how well they
perform to related tasks. Specifically, clearly defined and more challenging goals yield higher
performance than vague, easy or do-your -best goals. To be effective, goal setting theory
assumes that individuals must be committed to the goal, must get feedback and must have the
required managerial skills and ability to perform the task. Therefore, linking this theory to the
performance of SMEs, these enterprises performance can be achieved and enhanced once clear,
measurable, attainable goals have been set however challenging they seen to be as well as
effective communication of the results through different departments the willingness to work
towards attainment of goal is main source of job motivation. Clear, particular and difficult goals
are greater motivating factors than easy, general and vague goals. Therefore, for these enterprises
to enhance their performance, well stipulated, attainable and measurable same goals should be
set both at organizational and individual levels.

1.1.3 Conceptual perspective

According to Tessema, M. (2006) Managerial skills are the knowledge and ability of the
individuals in a managerial position to fulfill some specific managerial activities or tasks. This
knowledge and ability can be learned and practiced however it can also be acquired through
practical implementation of required activities and tasks. Therefore, each skill can be developed
through learning and practical experience of the individual. Managerial skills are skills
regarding the technique, practices, science of managing a company, business and many others.
There are three different types of managerial skills which include technical skills, human skills
and conceptual skills. Technical skills are the specific skills set used to perform a particular job
such as writing computer program, developing a budget or analyzing sales trends.

According to Samad, (2007), Performance refers to the accomplishment of a given task

measured against present known standards of accuracy, completeness, cost and speed. In a
contract performance is deemed to be the fulfillment of an obligation in a manner that releases
the performer from all the reliabilities in a contract. (Samad, 2007)

According to Gerber, M. E. (2001) various experts describe today’s global economy as one in
transformation to knowledge economy. Information systems and information technology have
become at the beginning of the 21st century, the most important factors for economy functioning
in developed countries. However, it is not only the information systems and information
technology, but actually working with information itself, which convey the change of thinking
and creation of value in modern approaches to business and management. These changes are
reflected in current economy.
Baldwin, J. et al. (2012) argued that in developing countries, the utilization of resources is being
shifted from current capital strategic resources to strategic resources in the form of information,
knowledge, creative thinking and innovation. Skills and knowledge belong to critical factors of
production. Enterprises can gain competitive advantage by implementing continual and on-going
innovations and the managerial skills and knowledge are in the centre of this process of
innovations.

1.1.4 Contextual perspective

The study context is SMES in Uganda according to UIA Report (2018), these enterprises
contribute over 90% of Uganda’s private sector and their contribution per sector stands at 49% in
service sector, 33% in commerce and trade, 10% in manufacturing and a small portion of these
enterprises at 8% in other. These SMES are a key driver in strengthening and fostering wealth
creation, innovation as well as job creation for the increasing young population. However,
majority of these enterprises in Uganda fail to persist for more than two years in operation
(MoFPED/UNPF, 2017) regardless of substantial financial support received from the
government, financial institutions and other outside development partners.
Managerial skills are the key competence’s entrepreneurs need to make decisions in a
competitive environment and sustain growth. And therefore, the SMEs poor performance may be
due low levels of managerial skills where majority of them in Uganda do not understand how to
draw up and operate within a given financial budget, why it is important to maintain and keep
proper records, when and from where to borrow responsibly so as to avoid becoming over-
indebted, to make informed choices between different financial products and services as well as
understanding the importance of ploughing back part of the profits into their business (BOU
Annual Report, 2012).
Therefore, the study focused on Small and Medium Sized enterprises in Kumi municipality
because it was highlighted among the worst performing SME hosts in Uganda (PSFU Annual
Report, 2018). According to this report, Kumi district is named among Eastern Ugandan districts
which are populated with Micro, small and medium sized enterprises. Majority of these
enterprises are engaged in trade and commerce and service based. Regardless of the substantial
support from both government and other developments partners, these enterprises have lived a
stunted growth and others gone out of the business.
1.2 Statement of Problem
Despite the fact that most of small and medium business in Southern division, Kumi
municipality were influenced to adopt the use of managerial skills, hoping that these will help
them to improve on their performance through increased productivity, continuity, customer
satisfaction, expansion, motivation of work, customer retention, among others however
according to the Local Government Development Plan (LGDP) (2016) it is reported that in
southern division in Kumi municipality, most of the small and medium enterprise are performing
poorly characterized with being short lived in nature, low productivity levels, low levels of
customer satisfaction, poor motivation of work, limited levels of retention and so forth which
accounts for over 75% failure rate of these enterprises annually. Therefore, it is upon such a
background that the researcher is interested in assessing the effects of managerial skills on the
performance of small and medium enterprises in southern division in Kumi municipality.

1.3 Purpose of the Study

The purpose of the study was to assess the effect of managerial skills on the performance of
small enterprises in southern division in Kumi municipality.

1.4 Specific objective of the Study

1. To examine the effect of technical skills on the performance of small and medium
enterprises in in southern division.
2. To determine the effect of human skills on the performance of small and medium enterprises
in southern division.
3. To establish the effect of conceptual skills on the performance of small and medium
enterprises in southern division.

1.5 Research questions

1. What is the effect of technical skills on the performance of small and medium enterprises in
southern division?
2. What is the effect of human skills on the performance of small and medium enterprises in
southern division?
3. What is the effect of conceptual skills on the performance of small and medium enterprises in
southern division?
1.6 Scope of the study
1.6.1 Geographical scope
The study was carried out in southern division. It is one of the three divisions found in Kumi
Municipality. It comprises of Approximately 21, 000 people (2014 population census report).
The area is selected because it has a number of mediums and small enterprises which include
supermarket, wholesale shops, petrol stations, retail shops, milling industries among others
whereby it is seen to be suitable for the study.

1.6.2 Content scope

The study specifically assessed the effects of managerial skills on the performance of small and
medium enterprises in southern division.

1.6.3 Time scope

The study took information within a time frame interval of five years (2016- 2021) this is
because it was the time when poor performance of SMEs was evident in Kumi municipality as
evidenced by persistent closure before birth day anniversary.

1.7 Significance of the study

 Upon the successful completion of the study, it may be very useful to the following
categories of people in the following ways;
 To the government and other policy makers such as nongovernmental business the study
may act as a basis for effective planning for the small and medium business/enterprises
within the district and the country at large.
 To the communities in Kumi municipality, the study may help in guiding most of the
small and medium enterprises on the roles for the use of managerial skills in business if
adopted and in the process, they are able to deliver services to the communities
effectively.
 To the intending researchers, the study may be a very useful tool of reference for the
future research works.

1.8 The conceptual frame work

The conceptual framework is the system of concepts, assumptions, expectations, beliefs, and
theories that supports and informs the research and it is a key part of the design (Miles &
Huberman, 1994; Robson, 2011). Miles and Huberman (1994) defined a conceptual framework
as a visual or written product, one that “explains, either graphically or in narrative form, the main
things to be studied; the key factors, concepts, or variables and the presumed relationships
among them” (p. 18).1.

Figure 1.1: Showing conceptual framework of the variables

Independent variables Dependent variables

Managerial skills Performance

 Technical skills  Increased productivity

 Human skills  Customer satisfaction
 Conceptual skills  Quality of goods and services

Moderating factors
 Government policies
 Organizational policies
 Organizational objectives

Source: Developed for this study based on the ideas adopted from Singiza & De Visser (2011),
Bitarabeho (2008), and Vathanophas & Thai-ngam (2007).

According to the framework above the study has two major variables that is to say managerial
skills as the independent variable and SME performance as the dependent variables. The specific
independent variables under managerial skills include entrepreneurships skills, human skills and
technical skills and these are hypothesized to be having correlation relationships with the specific
dependent variables that include productivity, customer satisfaction and quality of goods and
services. Looking at the above conceptual frame work, the independent variable comprises of
various forms of managerial skills such as Technical skills, Human skills, Conceptual skills, if
well moderated by government policies, organizational policies and organizational objectives of
small and medium enterprises leads to improvements in form of increased productivity,
continuity, customer satisfaction, expansion, and profitability as indicators of performance
1.9 Definitions of key terms

Managerial Skills: Managerial skills according to George & Jones (2011) refer to the ability of
a manager (of a small-scale enterprise) to perform managerial tasks and/or roles effectively and
efficiently. Boden & Nucci (2010) defined managerial skills as the ability of an entrepreneur to
execute managerial roles, which according to them include marketing, financial management,
book keeping and supervision.
Technical skills: According to George & Jones (2011) technical skills refer to job specific
knowledge and techniques required to perform a role. They depend on nature of the organisation
and task. For example the owner of a restaurant needs cooking skills, a school director needs
teaching skills and so on.
Human Skills: Human skills pertain to the ability to understand others, work with others, lead,
motivate and control behaviour of others. The ability of entrepreneurs to influence actions and
behaviour of others partly explains their success and failure (George & Johns, 2011).
Conceptual Skills: Conceptual skills involve the ability (of a manager, in this case an
entrepreneur) to see the enterprise as a whole and ability to analyse and diagnose the situation, to
distinguish between cause and effect (Daft, 1994; George & Jones, 2011; Mullins, 2012).
SME Performance: It is defined as the level and extent to which the entrepreneur’s venture
meets the objectives of the owner and expectations of the society of operation (Cohen, 1993).
Performance is thus defined according to individual goals set for a given career.

1.10 Chapter summary

As highlighted above, managerial skills are crucial instruments that maintain a grip on
organization’s operational activities. They are indispensable elements of management system.
This study therefore seeks to achieve the objectives of establishing the effect of entrepreneurship
skills, human skills and conceptual skills on performance of SMEs. The study will also be
significant to the various stakeholders as indicated above
 CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter intends to furnish the reader with existing scholarly works conducted to determine
the effect of managerial skills on the performance of SMEs. The chapter contains theoretical
review, Empirical review, and summary of the literature.

2.1 Theoretical Review

A theoretical review is the ‘blueprint’ or guide for a research (Grant & Osanloo, 2014). It is a
framework based on an existing theory in a field of inquiry that is related and/or reflects the
hypothesis of a study. This study will be guided by human capital theory.

2.1.1 Human Capital Theory

The human capital theory was first postulated Schultz in 1961 and develop extensively by
Becker in 1964. Schultz (1961) defined human capital as a stock of competences inherent in
knowledge, capability and skill that are economically usable.
Schultz proposed that the stock of competences is acquired through education, talents, IQ and
practical experience. Becker (1964) equated human capital to physical means of production
(factories and machines). Human capital states that the more an individual progresses with
education the more competent he/she is. It is a means of production by which additional
investment in human education yields additional output, this statement is supported by Lucas
(1988), who states that in a perfect market, educational investment for employees significantly
affects his/her level of productivity in the office.
Human capital can be substitutable, but is not transferable as physical factors of production
(land, labour, capital). Accordingly consumption constitutes an investment in human capital.
Consequently, entrepreneurs with higher specific human capital show high levels of performance
than those with lower level specific human capital. This is defined as entrepreneurial human
capital. The theory points out that knowledge, skills and competencies are a form of capital.
Human capital theory equates the acquisition of skill and knowledge to the means of production.
Human capital argument is that SME managers implement certain actions and policies as far as
their ability can carry them. According to Berry (2002) the way that firms practice certain
behaviour and put up certain systems into action may depend on the skills, preferences and
ability of the owners/managers and other employees available. The theory is based on the notion
that there are levels of ability starting from the manager who does not have a clear understanding
and then a competent manager.
This is reflected in SME operation because the manager rejects the sophisticated business
techniques because he/she is unable to comprehend their applicability and usefulness.
The transition from being unaware to becoming a competent manager is challenging. What needs
to be explored and understood here is how managers have been trained and educated to handle
new techniques (Nenzhelele, 2012). The ability in this manager is the flexibility and dynamism
to handle new ideas and techniques (Nenzhelele, 2012).
The competent manager is aware of the sound ways and practice that can help in the decision
making and sustainability of the business. Viitala (2005) agrees that the manager is able to
realize and put into practice the different types of practices according to the business life cycle.
This argument satisfies the human capital ideology that human capital is substitutable but not
transferable.
On the other hand the researcher criticizes the human capital theory. The argument is based on
that, the theory is an assumption that schooling increases productivity and can thus explain
higher wages. This assumption is questionable because education only serves for signaling or
selection factor in hiring employees. Another criticism of the theory is that unions regulate
wages paid, for there do not take into account individual qualifications into consideration but
type of industry.
However the theory is relevant in this study since SME owners in Uganda also conduct the
managerial tasks in their firms and are naturally very unwilling to share the control of their
enterprises. The business environment requires firms to be proactive and the dominant sense is
that, SME performance is dependent on individual competence. Human capital signifies the
quality of labour, which is one of four factors of production. It is not a question of the quantity of
labour force, but rather the quality (competence). In many SMEs around Uganda and the globe at
large, owners usually execute the managerial function due to the limited size of the firm and the
financial implications.
Human capital is lacking, especially in SMEs compared to large enterprises. This is according to
a research conducted by Balunywa (2013), who established that, SMEs’ do not have
indispensable human capital to run successful business operation. This was evidenced by lack of
knowledge and experience in conducting certain activities / tasks in their firms. This is consistent
with Senge (2012) who acknowledged that the competencies required of the managers are
known, but there is evidence that some of the owner-managers that run these SMEs’ are often
uninspired, uneducated, inexperienced and not innovative.
The ability to perform satisfactorily over a given task is increased by human capital, hence, its
relevancy to SMEs because they are in dire need of quality employees.
Human capital involves the following educational qualifications, prior-managerial experience
before starting an SME, related prior-industry experience and business knowledge. These
consequently affect management performance as a manager’s ability to perform is dependent on
the human capital background.
Furthermore, human capital is an important influence in the post-failure earning capacity of SME
owners/managers. Post-failure earning is income acquired after business operations failure by the
entrepreneur. Blumberg and Letterie (2008), states that, post failure earnings are the anticipated
income of the entrepreneur after the failure of the business operation. This a signal to the bank of
whether the SME owner-manager can eventually compensate his credit obligations even if the
business fails. Highly educated business entrepreneurs reflected through human capital, are more
likely to have a high post-failure earning capacity than less uneducated individuals (Fatoki,
2014). This suggests that the greater the level of managerial competency reflected through the
human capital the greater the performance and survival rate of the SMEs.

2.2 Empirical Review

This section reviewed the existing empirical studies on managerial skills and performance of
SMEs based on study objectives.

2.2.1 Technical skills and SMEs performance

Technical skill is the expertise in a specific field such as computers or accounting (technical
know-how, networking, and innovation). However the available literature
Senge (2012) and Hayton (2015), stating that managerial competencies are mostly affected by
lack of experience, educational qualification, skills attained is neither wholly accurate nor
conclusive. This gap between the managerial competency application and SME performance
means that the networking, mentoring and innovativeness of SME managers is poor. The fact
that the business world is constantly changing due to technological advancement is a true
reflection that a manager’s technical skill has a positive relationship with SME performance.
This research seeks to give evidence in the missing literature as supported by Hayton (2015) who
argues that competencies are of paramount importance rather than the knowledge and skill of
owner-manager if SMEs are to increase performance in complex tasks with a high level of
accountability.
Technical skills according to Kunene (2018) are also called vocational skills and refer to those
specific skills needed to work within a specific occupation, and include expertise, knowledge of
the industry, its standards and practices, ability to use tools, procedures and techniques of a
specified field, understanding of how specific things work, product/ service specific knowledge
that enables one to know what a particular product could do and what it can be used for, process
knowledge or how to manufacture relevant products and all steps that need to be taken to
develop and produce products or perform tasks necessary to render the service (Tustin, 2003;
Perks & Struwig, 2005). Examples of technical skills required by a SSE are those related to job
specific knowledge and include professional skills, marketing skills, bookkeeping skills,
budgeting skills, time management skills and legal skills (Zuzana & Matej, 2017).

Entrepreneurs who are professionals in their business fields have higher chances of success than
those who are not (Zuzana & Matej, 2017). Bekele & Worku (2018) found that shortage of
professional skills was responsible for about 49% failure of small-scale firms in Ethiopia.
Raduan et al. (2016) found the same in Malaysia, Audretsch & Lehman (2014), Baghai et al.
(1999), Smith & Schallenkamp (2015) supplement these findings, while Chandler & Jansen
(1992) argued that as small ventures grow, founding entrepreneurs should be replaced by
professional managers. Contrary, CarolYen-Yun Lin (1998) concluded that professional skills
are critical for short term not long term survival, arguing that in the long run, technical skills
need to be supplemented by other management skills, such as motivation, delegation and
teamwork. Davila et al’s’ (2003) findings suggested that technical skills are positively correlated
with entrepreneurial success and that they are a prerequisite to identification of an appropriate
opportunity and pursuing it successfully.

Technical skills can also affect a business in the angle of how a manager handles other
technicalities such as marketing, record keeping and legal aspects of the business. For example,
Schultz & Robinson (1986) showed that Nelson Company’s effective marketing strategy
increased its sales, profitability and competitiveness in late 1970’s. Managing the marketing
aspect well helps to improve product quality and increase customer satisfaction which culminates
into increased sales and profits (Price & Ferrell, 2015). Mayanja (2011) found that entrepreneurs
who properly managed their marketing were more successful than those who did not. His
findings showed that only 29% in a sample of 123 self-employed technicians in Kampala had
sound marketing arrangements and out of these, 58% were more successful. The other cause of
failure he identified was poor pricing. Ligthelm & Cant (2012) had also found that inappropriate
pricing negatively affects performance of a business venture.

Mezher et al. (2018) was a report, whose interest among other things was to unearth internal
factors explaining success and failure among Small-scale entrepreneurs in Lebanon. Their
findings showed that poor product quality is among the most important failure factors. As
observed by Price & Ferrell (2005), product quality is a prerequisite for entrepreneurs to enter
the market, a vital aspect of marketing. In line with the above findings, Nieuwenhuizen &
Kroon (2013) agreed with Rogerson (2000a) that technical knowledge is a key factor affecting
successful business performance. In supplement to this, Cornwal & Naughton (2013), confirmed
that entrepreneurs who are incompetent in technical skills cannot be successful because they
cannot be able to create excellent products.

Other studies have shown that success of a business relies much on its records management
(Australian Government, 2019; Bell et al, 2018; Linda & Jerry, 1993). Proper records
management helps the manager or founder to monitor business health, make vital decisions,
manage cash flows and show business financial position to lenders, which can act as a tool to
qualify for financial support from funders and other financing institutions. Bekele & Worku
(2008) found that failure to demonstrate standard bookkeeping, auditing and record keeping
accounted for 54% failure in micro, small and medium enterprises in Ethiopia.

Raduan et al. (2016) presented contradicting findings, when they showed that tasks like record
taking and financial control are not significant predictors of business success among
entrepreneurs. They however indicated that such tasks pause a big problem to Small-scale
entrepreneurs but not to larger businesses, since they hire trained people to manage records.
Kunene (2008) found that legal skills enhance success of small and medium enterprises in South
Africa; Tobias et al. (2018) showed that legal requirements is among the barriers to
entrepreneurial growth internationally; Botha (2016) asserted that without legal skills the
business may collapse; Tumbunan (2019) found that legal issues are a vital constraint to women
entrepreneurs in Indonesia, however Bushe (2017) & Svensson (2018) did not find a significant
correlation between the two.

2.2.2 Human Skills and SMEs performance

Human capital is the ability to execute a given task efficiently and effectively (prior business
experience and level of education). Mazzarol (2015) stated that, SMEs do not have indispensable
managerial competencies to perform their daily duties/activities in their respective firms. On the
other hand, Chiliya and Roberts-Lombard (2012) augment that, most SME owner-managers are
indistinguishable as far as knowledge and skills are concerned. This is observed through the
investigated individuals same levels of education with regards to degrees and diplomas obtained.
The relevant competencies that are required of the owner-managers are known. However, there
is evidence that some of the entrepreneurs (owner-managers) that run SMEs are frequently
uneducated and lack industry experience to accomplish their duties which in turn affects business
performance (Senge, 2012). The argument provided above indicates that there is an association
between a manager’s educational level and SME performance. Hence, the study will test the
strength of this association.
Human skills according to Katz are divided into (a) leadership ability and (b) intergroup
relationships. Intragroup skills are essential in lower and middle management roles and
intergroup skills are important in higher levels of management. They can be acquired through
self-development from personal point of view toward human activity so that one will (a)
recognize the feelings and sentiments brought to a situation; b) have an attitude about own
experience which enables a manager to re-evaluate and learn from them; c) develop ability in
understanding what others by their actions and words are trying to communicate; and d) develop
ability in successfully communicating own ideas and attitudes to others. It is important that
entrepreneurs self-examine their own concepts and values, which may enable them to develop
more useful attitudes about themselves and about others. In perspectives of this study, human
skills reviewed and empirically investigated included social skills, leading skills, conflict
resolution skills, motivation skills and communication
A successful entrepreneur requires a set of human skills which include social skills, leading
skills, motivation skills, conflict resolution skills and communication skills (George & Johns,
2011). Baron (1998) revealed that human skills involve socialization skills, which have a
positive relationship with venture success. This is because tasks of entrepreneurs involve
interaction with other people. Human socialization skills enable entrepreneurs to raise capital,
acquire good employees, delegate effectively, establish trust and legitimacy, develop networks,
monitor, evaluate and retain workers (Levander & Raccula, 2011). Souza (2011) contend that
entrepreneurs’ ability to work with others is critical for venture success. In the researcher’s
literature investigation, no empirical studies in Uganda were found on human skills’ impact to
success of small-scale entrepreneurs. Most of the available studies are conducted outside Uganda
and these are many. For example, Batjargal (2016) conducted a study in Russia on the key
aspects and importance of entrepreneurs’ networks and the findings indicated that entrepreneurs
who carefully identify and developed strong networks were more successful than those who did
not. Good networking skills help entrepreneurs to expand their markets, increase their sales and
profits, ensure survival and reduce costs, which are important dimensions of success.
Human skills also involve leading skills like listening, giving feedback, honesty, approachability,
integrity, flexibility, result orientation, empowerment, collaboration, motivation, uniting, and
valuing others (Bolden, 2014). There are contradicting evidences about the effect of this human
skill on business success in general and on success of small-scale entrepreneurs in particular.
This has even been extended to cultures that dominate in a given community. Some cultures are
described as friendly, social and welcoming while others are taken to be opposite. The debate on
whether human skills are key has been addressed mainly in marketing and social psychology.
But depending on the dominant culture, different people perceive it differently and it is no
wonder that different results have risen. For example, Bolden (2014) found out that human skills
have a positive effect on venture success, while Keep & Westwood (2013); Burgoyne et al
(2014) and Boyatzis (1993) showed little evidence that human skills like leading others increase
production. Others like Marshall et al. (1993), found a positive correlation between the two and
these are empirically supported by the findings of Rucci et al.’s (1998) and Baber et al.’s (1999)
results from 800 Sears stores in USA, which showed one’s leading abilities positively impact
business success. Similar results are from; Nohrra et al. (2013), Cockerill (1993), Lee et al.
(1993), etc.
It has been indicated that successful entrepreneurs always understand people they work with,
their needs and do what they do, to satisfy such needs. This is termed as the human motivation,
which is key in many organizations and a major topic of study in human psychology. Since
entrepreneurs are dealing with people to achieve their goals and objectives, then achieving such
is immensely tagged with the way one is able to manipulate and or work with humans
satisfactorily. Therefore successful entrepreneurs have interest in their employees/customers,
communicate to them clearly, encourage their workers to have pride and interest in their jobs,
respect them, show faith in them, allow and encourage them to speak and are appreciative.

2.2.3 Conceptual Skills and SMEs performance

Conceptual skills involve the ability (of a manager, in this case an entrepreneur) to see the
enterprise as a whole and ability to analyse and diagnose the situation, to distinguish between
cause and effect (Daft, 1994; George & Jones, 2011; Mullins, 2012). These conceptual skills
(like planning and organising) assumed to affect entrepreneurial success include goal setting,
resource allocation and resource mobilisation (planning skills) while organising skills include
task identification, grouping of workers, team building, departmentalisation and delegation.
George & Johns (2011) argue that the ability of a manager to organise these aspects is vital in
achievement of organisational goals.
Conceptual skills include recognizing how various functions of the organization depend on one
another, and how changes in one part affect others. They extend to visualizing the relationship of
the individual business to the industry, the community, and the political, social and economic
forces of the nation as a whole. They involve thinking in terms of the following: relative
emphasis and priorities among conflicting objectives and criteria; relative tendencies and
probabilities (rather than certainties); rough correlations and patterns among elements (Kunene,
2018).

According to Katz (in Arul, 2019) training can enhance previously developed conceptual
abilities. In developing conceptual skills, coaching can be used and one way a superior can help
coach a subordinate is by delegation of responsibility. According to Katz, another way to
develop this skill is through trading jobs; by moving promising employees through different
functions of the business but at the same level of responsibility. Basing on the conceptualization
here, the researcher summarised conceptual skills into two broad categories namely; planning
skills (business plan development skills) and organizing skills

Martinez et al (2017), Rwigema & Ventur (2014) and Ucbasaran et al (2014) found positive
significant correlations between conceptual skills and success of small scale businesses in South
Africa and USA respectively. Their studies, which concentrated on management skills of small
businesses, revealed that most owners of such businesses committed serious mistakes in fields of
business planning, resource allocation, and product design and leadership dominance. Such
mistakes are a sign of lack of management skills for example in organizing a business venture,
especially during its formative stages.

Van Vuureen (2012) showed that conceptual skills enable initiation and development of
entrepreneurial activities, which result in success. Simpson et al (2013) added that ability to
make a proper business plan positively influences success of small scale entrepreneurs in South
Africa. Govender (1994) had also indicated that one way to reduce small business failure is
training entrepreneurs into appropriate skills such as conceptual. According to Rwigema &
Venter (2004) conceptual skills such as resource mobilization and allocation skills are a
prerequisite for venture success. Their study showed that resource mobilization and allocation
skills enable the entrepreneur to gather and control venture resources, which is necessary in the
successful running and growing of a business venture. It is therefore indicated that entrepreneurs
who fail to manage business resources are bound to fail, since resources are the blood of the
business. This explains the highly significant relationship revealed in this study.

Botha (2016) conducted a study on effectiveness of women entrepreneurship programme as a

training intervention on potential start-ups and established women entrepreneurs in South Africa.
His findings showed that planning skills are positively and significantly correlated with business
success. In particular, he identified the following skills as being important in entrepreneurial
success; goal setting skills, careful planning of time, resource utilization skills and business plan
development skills. Similar results were also found by Kunene (2018) and Mayanja (2001).

2.3 Summary of Literature Review and the literature gap

Small and Medium Sized Enterprises are a major economic driver in Uganda’s economy as they
play a fundamental role of wealth and job creation to ever increasing Uganda’s population.
Different empirical studies by different scholars have established that managerial skills levels
among companies and firms has an effect on their growth and performance. Still, many studies
have used a resource-based theory upholding that managerial skills is an intangible, immovable
and a rare resource and if well utilized can give an enterprise a competitive advantage and
enhance growth and performance. However this study will use human capital theory as point of
reference to inform its argument. Similarly Few scholars in Uganda have come up to conduct
empirical studies on Managerial skills and how it affects the performance of small and medium
enterprises and most of the existing studies done have been focusing on large firms and
companies. Substantial support in from of funding and finances have been extended by
governments and other development partners to boost their performance and strengthen their
survival but, there is limited understanding on whether these firms have enough managerial skills
to make use of these financial resources extended and apparently limited follow up has been
done to access whether these funds have been effectively and efficiently fully deployed and
managed.
Even considering existing studies, the current studies have not clearly explained how these
enterprises can deploy managerial skills as a resource to reduce or avoid failure and achieve
faster business growth. Several scholars have studied managerial skills and performance (Eniola
& Entebang, 2014; Chepkemoi et al., 2017; Nanziri & Leibbrandt, 2018). However, most of
these studies are focusing on how managerial skills affect company performance and few of
them are looking at the how managerial skills affect general performance especially looking at
those specific dimensions of managerial skills such as technical skills, human skills and
conceptual skills. Some of these studies have produce mixed results and therefore contracting
conclusions. Some studies have established a relationship between the variables and others
established no relationship existing. This is shown by Hoseini et al, (2012) on a study managerial
skills on transaction costs of obtaining credit in rural Iran where he failed to establish any
relationship. Also, managerial skills have been linked to influence the performance of firms as
portrayed by Nanziri and Leibbrandt (2018). Therefore, this study will seek to bridge this
literature gap and expand on the literature about how managerial skills affect performance
specifically among SMEs in Uganda case in point of Kumi municipality.
 CHAPTER THREE
METHODOLOGY
3.0 Introduction
This chapter covers the research design, study population, sample size, sampling technique, data
sources, data collection methods, reliability and validity of data, data analysis, ethical
consideration, limitations to the study and conclusion.
3.1 Research design
A cross sectional survey design was adopted in this study where data on all the variables under
the study will be collected at a point in time. This design is widely accepted and applied by many
scholars (Sugioko, 2010; Onduso, 2013) and found it appropriate as it is effective when
collecting data across different enterprises at a given point at a time. Furthermore, the study also
deploys quantitative method that is explanatory in nature, used in generating numerical data
through descriptive statistics which will be statistically manipulated to explain the effect of
managerial skills on performance of SMEs.

3.2 Study Population

The population for this study comprised of small and medium sized enterprises which are
registered under Kumi Municipal Council focusing only on those operating from Kumi
Municipality. This area of research was selected because Kumi district is named among the
districts that have struggling enterprises (PSFU Annual Report, 2018). These SMES are
engaging majorly in activities of commerce, and services. Basing on the information provided by
URA, Kumi District, there are 300 registered small and medium sized enterprises that are
operating in sectors of service, trade and commerce which are widely spread and operate within
the district. However, most of these enterprises are sparsely located and therefore the researcher
considered southern division in Kumi Municipality as the area target area under the study
because most of these SMEs are concentrated within this confined area where 130 registered
SMEs according to statistics from Uganda Revenue Authority in Kumi District operate from.
And therefore, the target population will constitute 130 enterprises which operate from the
Municipality and these included 35 SMEs engaged in service-based business, 95 enterprises
engaged in trade and commerce. The units of inquiries will compose of employees, managers
and owners of SMEs whereas unit of analysis will be SMEs.
3.3 Sample Size and composition
Basing on Krejcie and Morgan (1970) sample size determination model. A sample size of 97
respondents was selected from a population of 130 SMEs in Kumi Municipality basing on the
statistics from Kumi District Local Government.
Nature of SME Populatio Sample Sampling technique
n
Trade and commerce 95 71 Stratified simple random sampling
Service 35 26 Stratified simple random sampling
Total 130 97
Source: Kumi district commercial office, 2021 & Krejcie and Morgan (1970)

3.4 Sampling Technique.

The research applied stratified simple random sampling technique to identify and extract strata
according to characteristics and business line in which an enterprise is engaged in. Therefore, all
SMEs in trade and commerce were put in the same strata, as well as those in service respectively.
After, enterprises in a given stratum will be selected using simple random sampling to constitute
sample respondent enterprises to participate in the study where empirical investigations were
conducted to address the objectives of the study.

3.5 Data Collection Methods

Survey data collection method was used in the study to collect quantitative data. Specifically, a
structured self-administered questionnaire method will be deployed in carrying out a survey as it
is used as an instrument. Many researchers (Danso & Adomako, 2014; Pimpong & Laryea,
2016) deployed this particular method in related studies. The questions used in this tool will be
mainly close ended as an intention to reduce and limit irrelevant and unnecessary responses from
the respondents.
3.6 Sources of data
Data was collected from both primary and secondary data sources.
3.6.1 Primary data
Kumar (2013) defined primary data to mean original data that has been collected specifically for
the purpose in mind. Grey (2014) argued that using primary data promotes bias free information
because it is first-hand information which is more reliable. Questionnaires and interviews were
used by the researcher to gather primary data.

3.6.2 Secondary data

Kumar (2013) defined secondary data to mean data that has already been collected and readily
available from other sources. Secondary data can be collected from both external and internal
sources. External sources include literature, industry surveys or compilations of computerized
databases. Internal sources; primary data, extracted from the organization’s financial statements
and inspection reports.

3.7 Data collection instrument

The research instruments to be used in this study was structured questionnaire using nominal
ordinal and scaled item. Bowling (2005) simply explains Research instruments as devices for
assessing the variables of interest. This Instrument can be in the form of questionnaire in forms
of single items (questions), batteries of single items or scales of items which can be scored.
3.7.1 Self-Administered Questionnaire
Quantitative data was collected using a detailed questionnaire with mainly closed ended
questions and some open-ended questions for respondent to fill short responses and for ease of
analysis and shorter response time from the respondents.
This instrument covered questions about all dimensions of managerial skills which cover
technical skills, human skills and conceptual skills as well as the different measures of
performance of these enterprises and was limited to productivity, customer satisfaction and
quality of goods and services as adopted from past studies and adjusted to address my objectives
under the study.
The responses collected were arranged on a five-point Likert scale, where ‘SA’ means ‘strongly
agree’, ‘A’ means ‘agree’, ‘NS’ means ‘Not Sure’, ‘D’ means ‘disagree’, ‘SD’ means ‘strongly
disagree’.
This approach is preferred simply because it enhances simplicity where straight forward answers
are required. These questionnaires was self-administered and was distributed to different sales
personnel, accountants, general staff owners and managers of these enterprises with in selected
SMEs in Kumi Municipality, however in some occasions, research assistant gave a hand in
explaining some concepts to especially uneducated respondents.
3.8 Research Procedure
The researcher developed a proposal in a period of about 3 months under the guidance of the
supervisors. Once the proposal is ready; the researcher obtained an introduction letter from
Uganda Christian University which was used to seek permission from Kumi municipality to
proceed with the study. Once the permission was granted, the researcher conducted pilot tests of
the instruments and proceeded to collect data. The researcher distributed the questionnaires
through emails and hand delivery. The data collected was assembled, cleaned up and analyzed
using appropriate data analysis methods and presented using tables, figures by use of SSPS
software.

3.9 Validity and reliability of research instrument.

3.9.1 Validity of instruments
Validity refers to the extent to which research results can be accurately interpreted and generated
(Saunders & Tosey, 1990; Vogt et al., 2007) explains it as “the truth or accuracy of the study”.
Validity tests will be conducted for content and criteria to test well how the tool used is
representative and captures relationships between the variables as well as a concept measure
Content Validity Index (CVI) was determined by first discussing the items in the instrument with
the supervisors and research experts. This was calculated using;
CVI = Total Number of items rated by all respondents
Total Number of items in the Instrument
Thereafter, the content validity index was computed using the methodology proposed by Crocker
et al (1986). Neuman (2000) recommends a content validity index of above 0.5, indicating that
the validity of the instrument is acceptable.
3.10.2 Reliability of the instrument
According to Hoffschwelle (2011), reliability results from a process that produces consistent,
dependable, replicable findings as confirmed by previous studies. Vogt et al., (2007) who defines
reliability as the consistency of a design or a measurement to give same conclusion if used by
different scholars or used to different times. The researcher made sure that clear operational
definitions of the variables under the study are provided so as to ensure internal consistency.
To enhance the reliability of the instrument, a pilot study was conducted. Pre-testing was used to
gauge the clarity and relevancy of the instrument items and those items found to be inadequate
for measuring variables were modified to improve the quality of the research instruments. A
research tool will be subjected to a reliability test and a Cronbach Alpha of 0.7 or higher is
significant enough to show reliability of the instrument (Nunnally, 1978). The closer it is to 1 the
higher the reliability.

3.11 Data Analysis

The quantitative data was collected, edited and coded using the statistical package for the social
sciences (SPSS) 20. Two types of analyses were computed; descriptive statistics (frequencies,
percentages, mean, and standard deviation) and inferential statistics (regression analysis). The
frequencies, percentages, means and standard deviation were used to determine the respondents’
views on each of the study variable. The regression analysis technique was used to measure the
magnitude of the effect. The results of findings were summarized and presented in tables for
easy analysis and interpretation

3.12 Ethical considerations

According to Saunders and Tosey (1990), Ethics are the standards of behavior that guide a study
in relation to the right of those who become the subject of work, or affected by it. The study
sought approval from Uganda Christian University, Mbale university college Department of
business in quest of permission to continue with data collection. All the necessary requirements
and suggestions were incorporated in the process of data collection to protect the respondents
who were to participate in the interview exercise.
Furthermore, Consent was first sought from any participant before being enrolled in the study
and the study ensured that participants voluntarily participate in the study. Finally, the study
ensured utmost confidentiality of those participating in the process by concealing their names
and other personal information.
 CHAPTER FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS

4.0 Introduction
This chapter presents findings in line the objectives of the objectives of the study. The chapter
deals with the presentation, analysis as well as interpretations of the study findings. The chapter
contains the respondents’ rate of response, the respondent characteristics; SME characteristics
and study objectives focusing on Technical skills, Human skills, conceptual skills as well as the
performance measures among Small and Medium sixes enterprises in Kumi Municipality,
Southern division. The data was collected exclusively using a self-administered questionnaire as
a research instrument. The researcher made use of descriptive and regression analysis to present
the result in tables and figures.

4.1 Response rate

Out of 97 self-administered questionnaires administered, only 73 were returned. Out of these, 64
questionnaires were considered to be complete for further analysis giving 75% response rate.
This high response rate was achieved mainly due to better data collection procedures and
engagements, where the researcher pre-notified and explained to the potential respondents, the
benefits of the study findings of the intended survey.

4.2 Respondents’ characteristics.

The information collected from the respondents about the key characteristics of the respondents
in terms of age, gender, position held and their education level are presented in the tables below
Table 4.2.1: Gender of Respondents
Frequency Percent Valid Percent Cumulative Percent

Male 43 67.2 67.2 67.2

Female 21 32.8 32.8 100.0

 Total 64 100.0 100.0

Source: Primary data, 2021

From table 4.2.1, majority of the respondents in in the study were male representing 67.2% as
compared to 32.8% female representation in the study.

4.2.2 Age of the Respondents

To establish the age of the respondents, respondents were asked to state their ages and below are
the results that were recorded in figure 2.
Figure 2: showing age of the respondents

Age of the Respondents

Frequency Percentage

34.3
3

26.5 22
20.3 18.7
17
13 12

20-29Years 30-39Years 40-49Years 50&above

From figure 2, it was found out that most of the respondents had 40-49 years and these took the
highest toll of 34.3%. Those who were in the category of 30-39 years constituted 26.5%, 20-29
years were represented by 20.3% and the last category of above50 years was represented 18.7%.
On the other hand, from the interviews conducted, most of the respondents were between above
50 years and these took a percentage of 50%. Those who were between 40-49 years took 40%
and 30-39 had 10% of the respondents. The above statistics inform us that the study was
conducted mostly in the people who were 30 years and above. These categories of years are
associated and susceptible to have enough experience of what is exactly happening as far as the
study is concerned.
Table 4.2.2 Educational level of respondents
Frequency Percent Valid Percent Cumulative Percent
Primary 2 3.1 3.1 3.1
Secondary 12 18.8 18.8 21.9
Tertiary 27 42.2 42.2 64.1
University 23 35.9 35.9 100.0
Total 64 100.0 100.0
Source: Primary data, 2021
On the education level of the respondents, majority (27) 42.2% of the respondents have gone
through tertiary education followed by (23) 35.9% being university graduates indicating that a
bigger proportion has gone through formal education and may possess certain business
knowledge and skills. 18.8% have attained secondary education level while the remaining 3.1%
stopped at primary level.
Table 4.2.3: Sector of SME
Frequency Percent Valid Percent Cumulative Percent
Trade & commerce 40 62.5 62.5 62.5
Service 24 37.5 37.5 100.0
Total 64 100.0 100.0
Source: Primary data, 2021
The information from the study also revealed that 62.5 % of these enterprises in the study are
engaged in trade and commerce where as 37.5% are in service sector.

4. 3 Descriptive statistics of the study variables

This section presents data collected and analysed on the first objective of the study which was to
examine the effect of technical skills on performance of SMEs. The data collected from their
responses is presented on the table below.
4. 3.1 Descriptive analysis on the effect of technical skills on performance of SMEs
Table 4.3.1: Reported response on effect of effect of technical skills on performance of
SMEs

Std.
Items Mean Deviation
There is a strong emphasis on technological leadership 3.56 0.233
Computer literacy is essential in business operations 2.73 1.142
There is use of computer software to manage business operations 3.20 1.237
There is delegation of tasks to subordinates in enterprises 3.04 1.142
Grand mean 3.13
Source: Primary data, 2021
Note: These items were measured on a five-point Likert scale where 1=strongly disagree
and 5=strongly agree. S.D indicate the degree to which individual scores by respondents
are far from the mean. N= 64

Basing on the above table, it is evidenced that in most SMEs there is strong emphasis on
technological leadership (Mean=3.56, SD=0.233) implying that most of these enterprises have
embraced new technological advancements. On computer literacy is essential in business
operations, it evident that most SMEs embrace computer literacy with Mean=2.73, SD=1.237.
On whether there is use of computer software to manage business operations, there were wide
variation on responses as shown by SD 1.237 and mean 3.20. It is also noted that these there is
little delegation of tasks to subordinates in SMEs as shown by Mean=3.04, SD=1.208 as a result
of wide variation in responses. Generally, basing on the grad mean=3.13, the responses indicate
that there is less application of the technical skills in these enterprises in monitoring their
performance.

4.3.2 Descriptive statistics on effect of Human skills on performance of SMEs

Human skills as a dimension was provided for the respondents to express their opinion in form of
their degree of acceptance to different items provided to the respondent and the data collected
form their responses is presented on the table below.
Table 4.3.2: Reported responses on effect of Human skills on performance of SMEs

Std.
Items Mean Deviation

There is effective communication between business owners and 3.78 1.175

workers

Workers exhibit team work among themselves 3.53 1.221

Workers in the SME have high levels of adaptability and flexibility to 3.75 1.069
work situations

Management encourages creativity among workers of SME 3.66 1.087

Workers in SME are constantly engaged in research 3.92 .965

Grand mean 3.72

Source: Primary data, 2021

Note: These items were measured on a five-point Likert scale where 1=strongly disagree
and 5=strongly agree. S.D indicate the degree to which individual scores by respondents
are far from the mean. N= 64

From the table 4.3.2 above, the data indicates that on average, respondents agreed on the items
used to measure Human skills among these small and medium enterprises with a grand mean
core of 3.72. Majority of the respondents are making efforts in ensuring effective communication
between business owners and workers in their enterprises with a mean score of 3.78 and standard
deviation of 1.175, an indication that there are variations in the responses where some
respondents agreed and others did not agree on this item. The data also revealed that Most
enterprises are making efforts in constantly engaging in research (Mean=3.92, SD=0.965).
however, there are notable variations on how different entrepreneurs score on different
measurements of human skills evaluated as evidence by the big standard deviation scores, for
example, responses on whether these enterprises exhibit team work among workers an average
score of 3.53 with a big standard deviation value score of 1.221 indicating that there exists a big
deviation between the minimum score and the maximum score from the average score. Also,
whether workers in the SME have high levels of adaptability and flexibility to work situations,
results showed variations in responses with mean 3.75 and standard deviation 1.069. The above
findings still show that management of most SMEs does not encourage creativity among workers
of SME (mean=3.66, SD=1.087) which show varied responses.
4.3.3 Descriptive analysis on effect of conceptual skills on performance of SMEs
In response to assessment of conceptual skills, different items were provided to the respondents
to express their opinion in form of their degree of agreement and the data collected from their
responses is presented on the table below.
Table 4.3.3: Reported response levels on effect of conceptual skills on performance of
SMEs
Items Mean Std.
Deviation
Most managers of SMEs inspire their employees 3.42 1.206
Owners of SMEs communicate their performance goals 3.58 1.020
SMEs encourage collaboration in their operations 3.78 0.934
Employees of SMEs engage in logical thinking and multitasking 3.33 1.128
Employees are encouraged to take up management position through 3.92 0.948
delegation
Grand mean 3.60
Source: Primary data, 2021
Note: These items were measured on a five-point Likert scale where 1=strongly disagree
and 5=strongly agree. S.D indicate the degree to which individual scores by respondents
are far from the mean. N= 64

From the table above, it is evidenced that most of these enterprises encourage collaborations in
their operations with mean of 3.78 and standard deviation 0.934. Also there was agreement that
employees are encouraged to take up management positions through delegation as indicated by
mean of 3.92 and standard deviation of 0.948. On whether managers of SMEs inspire their
employees, results show wide variation in responses as indicated by (mean=3.42, SD=1.206). It
is also noted that owners of SMEs communicate their performance goals (mean=3.58,
SD=1.020) with wide variations. Also, employees of SMEs do not engage in logical thinking and
multitasking as indicated by Mean=3.53, SD=1.112 which show variations on scores indicated
by large standard deviation scores and therefore implies that not all respondents agreed to fact
that there are high conceptual skills among these SMEs as evidenced by low scores of some
items. Generally, this can be seen basing on the table above and grand mean=3.60 that a big
number of these enterprises understand the importance of conceptual skills.

4.4 Regression analysis to establish the effect between the study variables
For the objectives of this study to be fulfilled, regression analysis using SPSS version 23.0 was
undertaken in order to examine effect of managerial skills on performance of SMEs. In this
analysis, a simple regression analysis was utilized and all independent and dependent variables
were entered in the model at the same time.

4.4.1 Regression analysis for the effect of Technical skills on performance of SMEs
In order to address the first objective of the study, a regressive analysis was done to examine the
effect of technical skills literacy as an independent variable on performance as an independent
variable. The results from analysis are presented in the model summary and coefficients tables
below.
Table 4.4.1: Regression model summary and coefficients for the effect of Technical skills on
performance of SMEs
Model Summary

Adjusted R Std. Error of the Estimate

Model R R Square Square F-statistic

1 .332a .110 .096 .553 5.693

a. Predictors: (Constant), Technical skills
Coefficientsa

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta Sig.

1 (Constant) 4.615 .301 .00 0

 Technical skills .153 .091 .132 .00 7

a. Dependent Variable: Performance

Source: Primary data, 2021
From the table 4.4.1 showing the model summary statistics above, a p-value = 0.007 that is
higher than 5% level of significance indicates that technical skills positively (Beta=0.153)
predicts the performance and effect is insignificant at p-value > 0.05.
An adjusted R2 of 0.096 implies that an extra effort in ensuring proper use of technical skills
among these SMEs explains and predicts significantly 9.6% variations in performance of SMEs
in Kumi Municipality and the remaining 90.4% is explained by other factors. Basing on such
findings, the researcher therefore concludes that Technical skills insignificantly and positively
affects performance.
4.4.2 Regression Analysis for the effect of human skills on performance of SMEs
For analysis of the effect of managerial skills on performance of SMEs in Kumi Municipality,
the independent variable was conceptualized in terms of human skills and for the study to
achieve its one of the objectives, human skills was regressed to assess its effect on performance.
The results from analysis are presented in the model summary and coefficients tables below.
Table 4.4.2: Regression model summary and coefficients for the effect of human skills on
performance of SMEs
Model summary

Model R R Square Adjusted R Square F-Statistic Std. Error of the Estimate

1 .304a .092 .077 9.421 .464

a. Predictors: (Constant), Human skills

Coefficientsa

Model Standardized
Unstandardized Coefficients Coefficients

B Std. Error Beta Sig.

1 (Constant) 2.892 .325 .000

 Human skills .224 .089 .304 .015

a. Dependent Variable: Performance

Source: primary data, 2021
From the tables 4.4.1 showing the model summary statistics above, a p-value = 0.015 that is less
than 5% level of significance indicates that Human skills positively (Beta=0.224) predicts the
performance and effect is significant at p-value < 0.05.
An adjusted R2 of 0.077 implies that an extra effort in ensuring Human skills among these SMEs
explains and predicts significantly 7.7% variations in performance of SMEs in Kumi
Municipality and the remaining 92.3% explained by other factors. Basing on such findings, the
researcher therefore concludes that Human skills significantly and positively affects
performance.
4.4.3 Regression Analysis for the effect of Conceptual skills on performance of SMEs
In order to analyses the effect of managerial skills on performance of SMEs in Kumi
Municipality, the independent variable was conceptualized in terms of Conceptual skills and for
the study to achieve its one of the objectives, regression analysis to assess its effect on
performance was performed using SPSS. The results from analysis are presented in the model
summary and coefficients tables below.
Table 4.4.3: Regression model summary and Coefficients for the effect of conceptual skills
on performance of SMEs
Model Summary

Model R R Square Adjusted R Square F-Statistic Std. Error of the Estimate

1 .194a .037 .021 8.642 .588

a. Predictors: (Constant), conceptual skills
Coefficientsa

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta Sig.

1 (Constant) 3.356 .374 .000

 Conceptual skills .091 .100 .114 .169
a. Dependent Variable: Performance
Source: primary data, 2020
From the table 4.4.3 showing the model summary statistics above, a p-value = 0.169 that is more
than 5% level of significance indicates that conceptual skills among SMEs positively
(Beta=0.091) predicts and affects their performance. However, its effect is insignificant at p-
value > 0.05.
An adjusted R2 of 0.021 implies that an extra effort in ensuring effective conceptual skills among
these SMEs explains 2.1% variations in performance of SMEs in Kumi municipality. However,
these variations are not significant in affecting their performance. Basing on such findings, the
researcher therefore concludes that conceptual skills positively affects performance however
much the effect that exists between the variables is not significant.

4.4.4 Regression Analysis for the effect of Managerial skills on performance of SMEs
To address the purpose of the study aiming at examining the effect of managerial skills on
performance of Small and medium enterprises in Kumi Municipality, a multiple regression
analysis between three dimensions of an independent variable that included Technical skills,
Human skills and conceptual skills and performance as a dependent variable was conducted the
results from analysis are presented in the model summary and coefficients tables below.
Table 4.4.4: Regression model summary and Coefficients for the effect of managerial skills
on performance of SMEs
Model Summary

F-statistic Std. Error of the

Model R R Square Adjusted R Square Estimate Sig

1 .418a .175 .116 6.869 .371 .025a

a. Predictors: (Constant), Technical skills, Human skills, Conceptual skills

Coefficientsa

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta Sig.

3.011 .470
.000
.036
1 (Constant) .029 .105
.483
.305
Technical skills
.225 .096 .022
.095
Human skills
.016
Conceptual skills .072 .096
Source: primary data, 2021
From the tables 4.4.4 showing the model summary statistics above, a p-value = 0.025 that is less
5% level of significance indicates that Technical skills, Human skills and Conceptual skills
among SMEs positively predicts and affects their performance. The effect of conceptual skills
and Technical skills literacy is significant at p-value < 0.05 whereas effect of human skills
concept is insignificant at p>0.05.
An adjusted R2 of 0.116 from the findings implies that an extra effort in strengthening
Managerial skills in terms of possessing Technical skills, human skills as well as conceptual
skills among these SMEs explains 11.6% variations in performance of SMEs. Basing on such
findings, the researcher therefore concluded that managerial skills significantly affects SMEs
performance.
In conclusion, the study found out that managerial skills as a concept positively and significantly
affect performance among these SMEs with an implication that enterprises which possess such
skills, knowledge and competence in managing financial resources enjoy the benefits of
enhanced performance.
 CHAPTER FIVE
SUMMARY, DISCUSSION OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS OF THE STUDY
5.0 Introduction
This chapter presents the discussions of findings, summary, conclusion and recommendations of
the study that examined the effect of Managerial skills on performance of SMEs in Kumi
Municipality. It also explains how Technical skills, Human skills and conceptual skills effect
performance of SMEs. The chapter presents discussions on how the study findings relate to
existing theory and findings from empirical studies.

5.1. Summary of the key findings

The study sought to assess the effect of Managerial skills on performance of SMEs in Uganda
taking an empirical investigation in Kumi Municipality. Specifically, the study investigated the
effect of Technical skills, Human skill and conceptual skills on performance. A sample of 97
SMEs was selected from a population of 130 SMEs where a response rate of 75% was obtained.
The primary data was then collected through administering of questionnaires.
The study revealed that these SMEs give less attention to Human skills. However, much they
hire few people to help in running of these enterprises.
The study further revealed that conceptual skills is also given attention to as it is evidenced by
proper recording of all assets owned by an enterprise, most of these SMEs maintain both cash
books and business bank accounts separately, however, some of them don’t separate petty
cashbook from the main cashbook, don’t do even collect bank statements for bank reconciliation
purposes to establish the cause for the disagreements between the two separate accounts and
some SMEs don’t even record essential transactions. All this was evidenced by low mean scores.
Findings from the study revealed that these SMEs in Kumi tend to give attention to technical
skills of budgeting and it is done by purchasing what’s is budgeted for, preparing budgets for
activates to be engaged in. however, most of their budgets don’t run for a complete year and they
don’t normally budget for all their sales to be made in a period and they rarely budget for what
they spend on every day.
The study revealed that some of these SMEs register low sales growth as evidenced by their sales
not growing overtime due to the fact that they don’t carry out sales’ promotional activities. They
also experience low market growth evidenced by selling less quantities than the competitors,
most of these SMEs have not opened branches form different places however much some of
these SMEs normally purchase more than the previous purchases.
Most of them indicated that their profits have been increasing form period to period, however,
most disagreed on the fact that their incomes exceed the expenses incurred and most of these
SMEs don’t plough back the profits made during the period indicating a low profit growth.
In order to establish the effect of Managerial skills on the performance of SMEs, regression
analysis was performance and the findings revealed that technical skills, Human skills and
conceptual skills positively affect performance. However, only the effect of conceptual skills on
performance is insignificant due to its high p-value (0.169) great than 5% significant level.
Therefore, though all dimensions of managerial skills have positive effect on the performance,
they differ in their levels of significance.

5.2 Discussion of findings

In earlier chapters, the evidence regarding technical skills, human skills and conceptual skills as
well as performance levels was reported. Therefore, in this chapter, the discussion of these
findings is given. The first section provides discussion about the first objective of the study,
followed by the second and third objective.
5.2.1 The effect of Technical skills on the performance of SMEs
Objective one of this study sought to examine the effect technical skills on performance of
SMEs, a regression analysis was performed to determine how technical skills affects
performance. The study revealed that technical skills literacy significantly and positively affects
performance. The study reveals that with an adjusted R 2= 0.096, technical skills predicts and
explains 10.6% variations in performance of SMEs and effect is significant at P<0.05.
From the study, limited technical skills was revealed to be exiting among these SMEs with a
lower mean score of 2.52. This implies that most SMEs in Kumi Municipality don’t have
required knowledge, skills and technical skills.
Many of these SMEs don’t capacity building trainings to employees. This findings are in line
with Addaney et al., (2016) who explains that lack of technical skills has the capacity to cause
poor performance of small scale enterprises. Obago (2014) explains that individuals who are
technically incompetent tend to be unknowledgeable and end up performing substandard and
shoddy work and this hinders performance of SMEs in the long run.
Basing on the above explanations therefore, technical skills are a necessary competency that each
SME requires to ensure its survival. It is true that most SMEs operate without technically
competent persons and therefore they need knowledge of how to improve and manage technical
skills among their employees.
In confirming the effect of technical skills on performance, the study achieved its first objective
and established that technical skills significantly and positively affect and predicts performance
of Small and Medium Sized Enterprises.
5.2.2 The effect of human skills on the performance of SMEs
The second objective of the study sought to assess the effect of human skills of performance of
SMEs. To achieve this, a regression analysis was carried out to determine the magnitude and
existence of effect between the variables. With adjusted R2 = 0.077, the findings revealed that an
extra effort in ensuring proper human skills knowledge and strategies among these SMEs
explains and predicts significantly 7.7% variations in performance of SMEs in Kumi
Municipality significant at p<0.05 less than 5% significance level. A moderate high level of
human skills with a mean score of 3.56 was established.
This implies that most of SMEs have human skills, knowledge and competence in ensuring
proper book keeping as evidenced in ensuring proper recording of assets, however some of
SMEs proved to be lacking such skills as they don’t follow proper recruitment processes. As
Bongomin et al. (2016) explained, human skills knowledge positively affect performance of
firms as it is taken as basic skills and fundamental competences needed for a firm to operate and
grow efficiently.
Therefore, the declining performances of these Enterprise also attributed to how poor they handle
human resources as Chelimo and Sopia (2014) also pinned that proper human resources
positively enhances SMEs growth as measured by profitability and increased business expansion.
The study findings are further in agreement with Chepkemoi, Patrick, and Njoroge (2017) in that
Small and medium Enterprise that ensure proper human skills management are in position to
determine their performance accurately in terms of profit growth as well as sales growth .
Though human skills simplifies business processes such as hiring technical persons, bench
marking its performance with other similar or related enterprises and provide a basis for
instituting relevant financial controls to prevent early business failures, most SMEs have failed to
handle properly their records due to lack accounting knowledge and this has caused their
performance to remain low and their growth to be stunted.
To answer the second objective of the study, the study therefore established that human skills
significantly and positively affects the performance of SMEs in Kumi Municipality.
5.2.3 Effect of conceptual skills on the performance of SMEs
The third objective of the study sought to assess the effect of conceptual skills of performance of
SMEs. To achieve this, a regression analysis was also carried out to determine the magnitude and
existence of effect between the variables.
With adjusted R2 = 0.021, the findings revealed that an extra effort in ensuring conceptual
knowledge and skills among these SMEs explains and predicts 2.1% variations in performance
of SMEs in Kumi Municipality however, its effect is not significant (p>0.05) at 5% significance
level.
A moderate high level of conceptual skills among the SMEs with a mean score of 3.55 was
established. The above findings from the study implies that SMEs in Kumi Municipality tend to
give attention to how budgeting is should be done by purchasing what’s is budgeted for,
preparing budgets for activates to be engaged in. however, with low scores, most of their budgets
don’t run for a complete year and they don’t normally budget for all their sales to be made in a
period and they rarely budget for what they spend on every day. Therefore, SME low
performance is attributed to the poor budgeting process and budgetary controls as evidenced
from the findings.
Effective conceptual skills and knowledge enhance performance inform of reduced unnecessary
expenditures and this streamlines revenue and expenditure lines. This in return helps an
enterprise in production cost reduction and increased supply revenues or net profits made.
Presence of such controls enhances more formal budget planning which in turn escalates higher
growth in sales and profit (Adomako and Danso, 2014)
However, these findings from the study indicate that conceptual skills affect positively the
performance of SMEs but its effect is insignificant as Gonçalves (2014) also explained that
budgeting may have an effect on performance however, its effect can be insignificant in sense
that it is a difficult process that needs participation which is affected by many conditions like
likes diverting opinions on what items to spend on and therefore its hardly easy to ascertain its
absolute effect on the performance.
Therefore, to confirm the effect of conceptual skills on performance of SME, the study achieved
its objective and established that conceptual skills among SMEs positive affect their performance
and absence of budgeting competence and knowledge on how much, what, how, where and when
to spend is affecting and declining slowly their performance levels.

In conclusion of this section therefore, it is evidenced that conceptual skills, human skills and
technical skills affect positively performance of SMEs in Kumi municipality although the effect
of conceptual skills on performance is insignificant. Managerial skills are key to enhancement of
performance. As Lusardi & Mitchell (2013) explained, managerial skills provides the knowledge
and understanding of how business operations can be made and streamlined, what alternatives to
be considered for investment decisions and ensuing effective accountability.

5.4 Conclusion
A positive change/increase in an entrepreneur’s conceptual, human and technical skills is likely
to bring a positive change/increase in chances of success and vice versa. Success of a SSE can be
more predicted by technical and conceptual skills as compared to human skills. A one unit
increase in one’s technical skills possessed will bring more chances of success as compared to a
one unit increase in either human or conceptual skills. But also a one unit increase in one’s
conceptual skills will bring more chances of success as compared to a one unit increase in
human. Therefore whereas both technical and conceptual are important in fostering
entrepreneurial success, technical skills are more important than conceptual skills.

From the postulations of the environmental and individual theories, success can be better
explained by the way the entrepreneur is able to manipulate the environment in which the
business operates and the self. So the biggest challenge of small-scale entrepreneurs seems to be
how to manage the venture to lead it to success.
The study sought to examine the effect of managerial skills on performance of SMEs in Kumi
Municipality. Based on the study findings, the study concludes that managerial skills has a
significant and positive effect on performance of SMEs. These findings are consistent with
earlier empirical studies reviewed in earlier chapters. Eniola and Entabang (2014) who
established that managerial skills among SMEs enhance performance to a greater extent and
ACCA (2017) also found out that lack of managerial skills and capacity has serious
consequences for those of low incomes.
Basing on the findings of this study, the researcher rejected the null hypothesis in favor of an
alternative hypothesis that human skills significantly affects and predicts performance of these
SMEs and therefore implies high levels of human skills inform of skills, knowledge and
competence to ensure proper record keeping among SMEs implies and leads to improved
performance.
Basing on the study, the researcher also rejected the null hypothesis in favor of an alternative
hypothesis that technical skills literacy significantly and positively predicts performance and
therefore concludes that availability of such skill, knowledge and competence a resource
increases performance of SMEs in Kumi Municipality. However, the study concludes that
conceptual skills is also an important resource that an SMEs needs to enhance its performance
even though its effect is not significant.
Therefore, SMEs should put much emphasis on acquiring and maintaining skills, knowledge and
competences in ensuring that there is effective record keeping, budgeting for operational
activities is done promptly as well as ensuring that both external and internal debts are managed
efficiently so as to enhance their performance and such skills and knowledge should be
maintained so as to win a competitive edge over other competing entities in an industry.

5.5 Recommendations
There is need for the Government of Uganda to promote more women entrepreneurs in Kampala,
in order to promote gender equality in business and economic growth. This study found that men
dominate women in ownership of small-scale enterprises.

The Ministry of Education and Sports (MOES) and the National Council for Higher Education
(NCHE) should promote entrepreneurial skills in universities and other training institutions. This
study found more graduate entrepreneurs and diploma holders, therefore introducing
entrepreneurial skills in training courses will go a long way in boosting performance of these
entrepreneurs.

The attention of Non-Governmental Organizations (NGOs) and authorities responsible for

promoting entrepreneurs in Uganda should be put on young entrepreneurs.

There is need to educate Small-scale entrepreneurs in Kumi on formation of joint ventures since
most of them are still running sole proprietorship business, which are more prone to risks and
can hardly get assistance from government, other organizations and loans from financial
institutions. This can be done by entrepreneurs’ and business associations such as Uganda
Investment Authority, KACITA, private sector foundation, Uganda small-scale association and
so on.

The government through the private sector foundation needs to devise means to ensure that
Small-scale entrepreneurs can be able to employ more workers and survive longer as this will not
only uplift them, but also help to solve the high unemployment problem in the country. Policies
like reducing taxes, removing some irrelevant licenses and ongoing training programs will go a
long way in ensuring small-scale entrepreneurs’ survival and increasing number of people
employed.

Small-scale entrepreneurs need to put much more effort on how to open up branches but must
also be careful of when to do it to avoid ruining the mother branch. In all the efforts to open up
another branch, the entrepreneur must consolidate the first branch or look for partners in the
second branch. Kampala Small-scale entrepreneurs should also emphasize assets acquisition in
their businesses as this helps in consolidating the business and increasing their wealth, other than
keeping liquid cash, which can lose value and can easily be spent on less important and
unplanned things. Kampala Small-scale entrepreneurs also need to look for avenues of
increasing their revenue and profits. They can do this by forming strong associations through
which they can collectively bargain for higher prices, look for bigger markets and advocate for
reduced taxes among other things. The government however also needs to help Small-scale
entrepreneurs in Kumi increase their revenue and profits, through reducing taxes and license
fees.
Entrepreneurs in Kumi need to consider employing more part time workers than full time
employees, as this will reduce their costs but also increase on the number of people they employ.
They also need to promote their efforts in training the workers they employ in their businesses,
as this will extend more benefits to the society. They should also ensure that they keep adequate
level of stock, as this will reduce out of stock claims and boost customer’s confidence. Out of
stock claims send a bad image to potential customers and therefore they lose their confidence in
such a business, which lowers chances of success. Issues like knowing when to stock, how long
does the stock take to be sold off, when to re-order, how long will the stock spend in transit and
so on can help an entrepreneur solve many of these problems. This means that Small-scale
entrepreneurs must strengthen their regular planning for their businesses.

Entrepreneurs in Kumi can also boost their public relations by attending social functions of their
customers especially the most important ones like funerals. This increases customers’ attachment
to the business, which increases chances of success.

To ensure entrepreneurial success in Kumi, Conceptual skills must be emphasized. For example
the ministry of education must ensure that Conceptual skills such as business plan development,
goal setting, resource mobilization and allocation, team building, departmentalization and
delegation skills core papers taught in schools, universities and other training institutions.

Human skills (such as social skills, leading, motivation, and conflict resolution and
communication skills) also need to be emphasised in all training programs for Small-scale
entrepreneurs.

Training programs for entrepreneurs and among the courses taught at different levels, technical
skills like marketing, bookkeeping, budgeting, time management and legal skills should be
emphasized.

For all efforts of training small-scale entrepreneurs and reinforcing them, technical skills should
be given maximum attention, since they contribute the biggest percentage of success to a
business. Special and refresher courses in such fields like marketing and competition techniques,
bookkeeping, budgeting, time management and legal aspects need to be ongoing. Consultancy
firms also need to notice this so that they always focus on these skills when they are giving their
advices to business owners. All Non-Government Organizations (NGOs) in the drive to promote
entrepreneurs must also ensure that their attention and resources are invested in boosting
people’s Technical abilities.

5.6 Suggestions for further research

A replication of this study in other different sectors especially in micro enterprises as well as
other parts of the Uganda would explain a complete picture of the significance of the managerial
skills performance effect in general and on the performance of micro, small and medium sized
enterprise in particular.
The study conducted was conducted basing a small sample size. This is because of the limited
and budget allocated for the study and therefore a further study should be conducted on a relative
sample size.
The study only focused on three dimensions of managerial skills which included human skills,
conceptual skills and technical skills. However, there are a number of dimensions that
conceptualize managerial skills. Therefore, further research should be conducted on those other
dimensions like accountability, saving, investment, expenditure literacy among SMEs for
generalization of the results and fully establishment of the relationships and the effects that exist
between managerial skills and performance.
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 APPENDICES
UGANDA CHRISTIAN UNIVERSITY
APPENDIX I: QUESTIONNAIRE
Dear Respondent,
I’m Kwapi James, S16/BUW/BEPP/034 a student of Uganda Christian University. This
questionnaire has been designed strictly for academic purposes pertaining the research topic
“Effect of Managerial skills on performance of SMEs in Southern division, Kumi
municipality.”
Please kindly fill in the gaps and where necessary tick the best option in the boxes provided.
Your options are very crucial to this study and information given will be treated with utmost
confidentiality.
Section A: Respondent’s Background
Please, tick ( ) the box that represents your view or clearly write your response in the
provided space on the following statements
1. Gender of the respondent
Male Female

2. Age of the respondent

20-29 Years 30-39 years 40-49 years Above 50 years

3. Education level of the respondent

Primary Secondary University

Others; Specify…………………………………………………….
4. Nature of the business

Trade & commerce Service

Section B: Managerial skills and performance of SMEs
Strongly Disagree Disagree Not Sure Agree Strongly Agree
1 2 3 4 5
Please use the above scale to tick ( ) the answer that best suits your opinion on the following
statements.
Section C: Technical skills and performance of SMEs
S/N Statements 1 2 3 4 5
1 There is a strong emphasis on technological leadership
2 Computer literacy is essential in business operations
3 There is use of computer software to manage business operations
4 There is delegation of tasks to subordinates in enterprises
Do you have any other comment (s) you would like to advance on technical skills? Please
specify:
………………………………………………………………………………………………………
………………………………………………………………………………………………………
Section D: Human skills and performance of SMEs
S/N Statements 1 2 3 4 5
1. There is effective communication between business owners and
workers
2. Workers exhibit team work among themselves
3. Workers in the SME have high levels of adaptability and
flexibility to work situations
4. Management encourages creativity among workers of SME
5. Workers in SME are constantly engaged in research
Do you have any other comment (s) you would like to advance on human skills? Please specify:
………………………………………………………………………………………………………
………………………………………………………………………………………………………
Section E: Conceptual skills and performance of SMEs
S/N Statements 1 2 3 4 5
1. Most managers of SMEs inspire their employees
2. Owners of SMEs communicate their performance goals
3. SMEs encourage collaboration in their operations
4. Employees of SMEs engage in logical thinking and multitasking
5. Employees are encouraged to take up management position
through delegation
Do you have any other comment (s) you would like to advance conceptual skills? Please specify:
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Section F: Performance of SMEs
Could you please indicate the degree of agreement or disagreement with each one of the
following statements about your organization?
Key: SD = Strongly Dis Agree, D= Disagree, N= Neutral, A= Agree and SA = Strongly Agree
Please indicate your degree of agreement with each of the statements in sections A by showing
one tick on each statement

Statements SD D N A SA

Your enterprise’s productivity has been growing over time

Customer satisfaction is key in your enterprise

Quality goods and services are provided to customers

THANK YOU FOR YOUR ASSISTANCE