Management competence and performance of SMEs in Uganda

Abstract

The purpose of this research is to critically examine management competence on the performance of SMEs in Uganda as the country embarks on building managers with better skills in planning, entrepreneurial orientation and decision making to improve the performance of the SME sector in the coming decade and this was based on a case study. The study, based on the findings and objectives concluded a positive insignificant relationship between entrepreneurial orientation and performance of SMEs because Nkozi Clays performs relatively well with a low level of innovation and risk taking. In the data collection process, questionnaires were administered by the researcher to a sample of 36 respondents of which 31 respondents managed to return them answered at Nkozi clays in Mawokota division, Nabusanke village. The study found a positive relationship between planning and overall performance of SMEs because planning affects the organization’s long term and short term targets such as expansion, competitivess and sustainability in the market. The study concludes that in Mawokota division, business performance is greatly affected by decision making and without solutions to the problem some businesses might not be able to expand their market share and profitability levels since it’s through better decision making that managers are able to identify the best opportunities and exploit them through strategic reforms which SMEs can perform. The study therefore recommends that managers and their subordinates in SMEs embrace and display good decision making and planning skills as to enhance their level of performance. Organizations need to offer regular training and develop staffs’ managerial skills if they want to attain increased organizational performance