Role of management competence and performance of SMES in Uganda:

Abstract

The study was about role of management competence and performance of SMEs in Uganda, a case study of Victoria Seed Limited, Gulu branch. The research had three specific objectives: to evaluate the importance of management competence and performance of SMEs, to assess the use of management skills on performance of SMEs, to find out the relationship between management experience, skills and performance of SMEs and lastly to investigate the relationship between management competence and performance of SMEs as the major objective of the study. A case study design was used during the study. The researcher also used both qualitative and quantitative methods in order to obtain in-depth information and to ease the analysis of the collected data. Findings of the study were presented according to the research objectives. The research established that majority of SMEs’ employees spent a maximum of 10 years working for an enterprise before retiring and very few workers proceeds this limit. The study showed that SMEs’ employees must pose a wide range of technical skills such as technology, technical business management for them to work with advanced technologies. findings also revealed that management skills helps in spreading team work among SMEs’ employees, is a vital asset that influences performances of SMEs and aids SMEs to meet their expectations and goals. It further revealed that management skills and experience are forms of human capital that create platforms for teamwork among SMEs. This implies that efficient human capital would result into higher performance of SMEs. However other factor such as lack of innovation and experienced human resource to aid SME’s businesses show no relationship between management experiences and performance of SMEs. Based on the findings of the study, the researcher recommended that SMEs owners and managers need to invest in skills for them to meet their goals and expectations of their businesses and more in managerial skills to steer up their work units, teams and individuals results which would eventually lead to superior performance of SMEs in their respective business frameworks. In conclusion, management competence positively influences the performance of SMEs. However on the other hand, it also influences the performance of SMEs negatively. This was evidenced by lack of innovation and experienced human resource to aid SME’s businesses