The impact of managers' competences upon the performance of small enterprises

Abstract

PURPOSE: The objective of the article is to present the results of the study pertaining to the impact of competences of small enterprises' managers upon the enterprises' performance.

DESIGN/METHODOLOGY/APPROACH: The review of available literature as well as empirical studies were performed in order to arrive at the objective. This enabled an in-depth examination of the subject matter. The review of literature enabled the methodology of the study to be formed. The survey approach with the use of a questionnaire was applied in data collection. The impact of the managers' competences upon the performance of the enterprises was examined by means of structural equation modeling.

FINDINGS: The study expands knowledge in the field of small enterprises management. The article revealed that the performance of such enterprises is affected by the competences of the management. Based upon the review of literature, three types of competences were distinguished. A list of competences, which takes the specific character of small businesses into consideration, was developed for each of the types. The empirical study revealed that managerial competences directly affect the performance of the enterprises. Such competences are reinforced by specialized competences as well as personal and social competences.

PRACTICAL IMPLICATIONS: The results of the study may offer valuable information for small enterprise owners. They may prove helpful in developing competence profiles and strategies regarding the improvement of managers' competences. They may also be of use to consultants offering trainings and advisory services for small businesses. The results of the study are compelling and encourage further research.

ORIGINALITY/VALUE: The subject matter seems vital because insufficient competence level of the management is believed to be one of the weaknesses of small enterprises. Usually, such businesses are analyzed in relation to large enterprises or the entire MSME sector. The current study pertains exclusively to small enterprises, which have the lowest development capacity in the sector. Studies prove that the enhancement of the management's competences may contribute to the improvement of business performance.