Effects of entrepreneurship skills on the performance of small and medium scale enterprises: a study of smock enterprises in Bolgatanga

Abstract

Small and Medium Scale Enterprises (SMEs) contribute a colossal percentage to Gross Domestic Product (GDP) in ensuring economic growth, employment, income stability and poverty reduction in most developing countries like Ghana. In-spite of the above roles most of these enterprises are now collapsing as a result of not performing creditably well. It is in line with this that this study examines the effect of entrepreneurial skills on the performance of the Bolgatanga smock enterprises. The subject was investigated using a descriptive survey method that employs both qualitative and quantitative techniques to collect and analyze data using instruments such as questionnaires and interviews. Both open and close ended questions were designed for the study. The study showed that majority of entrepreneurs in the Bolgatanga smock industry had no or very little training on entrepreneurship and were engaged in enterprises which were necessity-based rather than opportunity-based. The study also found out those entrepreneurs who had entrepreneurial skills performed above average. They had the ability to recognize potentially profitable business opportunities and were risk takers. Prior knowledge of customers’ needs and management skills were also important but were rated low. Several challenges were noted to affect growth and performance of the smock industry. These included poor access to credit facility, lack of adequate market, lack of business training and absence of government support. The study recommended training on entrepreneurial skills and provision of support services to the enterprise owners