Determinants of Entrepreneurial Competencies Development in Small and Medium Enterprises

Abstract

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

Entrepreneurial Competencies and Readiness of Extension Service Beneficiaries of a State University

“…Thus, the null hypothesis is rejected. This is consistent with the findings of Umar, Cob, Omar, and Hamzah (2019) that suggest that those with higher educational attainment possess greater entrepreneurial competencies. Similarly, education allows an individual to acquire substantial knowledge and understanding, develop basic mental ability, and improve competencies that lead to self-employment (Genty et al, 2015).…”

Effect of government role and human resource competence on level of success of small and medium enterprises in East Java province with business performance as mediation variable

“…Thus, H4 is accepted. This result is comparable to the findings of previous researches, including Laguna et al (2012), Mejri & Zouaoui (2020), Sarwoko & Nurfarida (2018), Sidek & Mohamad (2014), and Umar et al (2018), which generally said that human resource competence contributes to business performance. Theoretically, the contribution of human resource competence encompasses five aspects such as motives, selfconcept, traits, knowledge, and skills (Widjaja, 2018).…”

“…For instance, from a business perspective, the most recognized element is "number", which is about how far a unit in SMEs can improve its sales and earnings. More information about SMEs are given by Law No.20 of 2008 on Small and Medium Enterprises (Habsari & Kholifah, 2018;Bhinekawati, 2016;Umar et al, 2018).…”

“…Empirical studies already proved that SMEs level of success is determined by many factors (Harmawan, 2019), which among others are government role (Habsari & Kholifah, 2018;Saputra et al, 2015;Ondang et al, 2019;and Akhmad et al, 2018), human resource competence (Arief & Rosiawan, 2009;Idrus & Abdussakir, 2019;Laguna et al, 2012;Mejri & Zouaoui, 2020;Sarwoko & Nurfarida, 2018;Sidek & Mohamad, 2014;Umar et al, 2018), and business performance (Merdekawati & Rosyanti, 2020;Makarenko et al, 2019;Ramani, 2018;and Nandita et al, 2019). It is true that those factors above are similarly influential to SMEs success but at different significance level.…”

Analisis Faktor-Faktor yang Memengaruhi Ketahanan UMKM Makanan dan Minuman Bersertifikat Halal saat Pandemi COVID-19 di Kota Banda Aceh

“…Menjadi wirausahawan membutuhkan lebih dari ide-ide besar. Seorang wirausahawan sejati adalah seseorang yang memiliki keunggulan sifat, keterampilan, dan karakteristik unik yang memungkinkan mereka untuk mengatasi rintangan dan mengejar impian mereka dengan kecepatan penuh (Umar et al, 2018). Karakteristik seorang wirausaha merupakan modal dasar yang sangat penting untuk dimiliki agar mampu mempertahankan dan mengembangkan bisnis dalam segala situasi yang dihadapinya (Sánchez, 2012;Ahmed et al, 2018).…”