Management Skills and Performance of Small-scale Enterprises in Manicaland Agricultural Showgrounds in Mutare, Zimbabwe

Abstract

Most people have recognised the importance and significance of Small and Medium Enterprises (SMEs) leading to appreciation of entrepreneurship in economic development. This study sought to identify crucial business management skills that help SME’s to survive by evaluating that correlation between business management skills and performance of SME’s. In this study, 44 owner or managers of small- scale enterprises were used as research respondents out of 50 manufacturing owners or managers. The manufacturing SME’s selected were welders, carpenters, and steel fabricators. Explorative design employed for this study. Semi-structured questionnaires were used as research instruments to collect data through face to face interviews. Qualitative data collection used through observations and closed questions. The study showed that there is a strong positive relationship between bookkeeping, marketing skill, planning skill and performance of SME’s as the correlation obtained for the multiple regression was 0.71 and 50% of change in performance was explained by business management skills. The findings further revealed a strong positive significant relationship between demographic features of education and experience with performance of owner or manager. From the findings it can be concluded that education and experience have influence over individual performance. Results of the study are useful tool for policy makers such as ZIMRA and Ministry of Women Community Small and Medium Enterprises Development, business financial support institutions, and business stakeholders, government policy agencies in underlining a new way to consider future growth. Again, supporting entrepreneurs does not require education support systems only since they are other factors that influence performance, but it requires other supporting activities that helps organisations to run efficiently since 50% of change in performance is explained by other factors. Suggested area of further studies could be extended by focusing the research on relationship between entrepreneur characteristic and performance of SME’s and effect of vocational training and practical short course on entrepreneurial attitude, factors affecting source of finance for manufacturing SME’s as well as success of manufacturing SME’s