MANAGERIAL COMPETENCE AND PERFORMANCE OF SMALL SCALE ENTERPRISES IN THE WA MUNICIPALITY

Abstract

In order to cope with the constant rapid changes In today's business environment, having a competent manager is vital to expansion in revenue, profit and overall business growth. There is however paucity of literature in the area of managerial competence and performance of Small Scale Enterprises (SSEs) in the Ghanaian economy in general and the Wa Municipality specifically. The study therefore seeks to assess the effects of managerial competence on performance of SSEs in the Wa Municipality. The study adopts a survey design and sampled 222 SSE owners/managers. An interview schedule is used to solicit the views of owners/managers of SSEs concerning issues on their level of education, experience, self-efficacy and tolerance for ambiguity as well as their estimated annual profits which are analysed using both descriptive and test (log-log regression model and Kendall's coefficient of concordance) statistics. The study reveals that years of education, years of managerial experience and self-efficacy of SSE owners/managers are positively related to and significant in explaining estimated annual profits of SSEs in the Wa Municipality. The study also confirms finance and access to credit as the main challenge impeding the performance of SSEs in the municipality. Hence, the study ultimately opines that managerial competence of SSE owners/managers significantly explains why and how SSEs in the Wa Municipality perform differently. The study therefore proposes sustained managerial capacity training, adult literacy for SSE owners/mangers, self-efficacy targeting and improved microfinance schemes as measures to improve performance of SSEs in the Wa Municipality.