The effect of entrepreneurial skills on the performance of a business organization

Abstract

This study was carried out to investigate the effect of entrepreneurial skills on the performance of a business organization in Century Bottling Company which is located in Namanve in Kampala. The study population was the employers and employees of Century Bottling Company Namanve. The objectives of the study were: To examine the relationship between creativity and business organization performance, to evaluate the relationship between innovation skills and business organization performance and to assess the relationship between management skills and business organization performance. Literature was reviewed to supplement and support the research findings and mainly articles, academic journals, text books, and internet were used as major sources of literature. This literature greatly contributed to the study and findings of the study were compared with the literature to see whether they concur or not. Questionnaires were used as means of data collection and 60 questionnaires were distributed to the employees and employers. The data collected was then analyzed properly to produce information. Tables were used in the presentation of data collected from the field. The study findings indicated that management skills had a positive effect on the performance of Century Bottling Company Ltd for example they improve productivity and promote team work. Innovation skills had a positive effect on the performance of Century Bottling Company for example they promote quality and help an organization achieve goals. Creativity skills also had positive effects on performance of Century Bottling Company for example they help in solving problems and promote good decisions. From the research findings, it was clear that when employees and employers apply management skills in a business, they will positively affect the performance of a business organization but if management skills are not applied by employees and employers in business, then there will be negative effects on the performance of a business organization. It was also confirmed that when employees and employers apply innovation skills in business, they will positively affect the performance of a business organization and this means the sales will increase and quality will be improved. More so, it was confirmed that when employers and employees apply creativity skills in business, they will positively affect the performance of a business organization and this means that the sales will increase and the business will expand. On the other hand, when employees and employers do not apply creativity skills, they can negatively affect the business and therefore the sales and quality will decrease and the business will not be able to expand. The study findings facilitated recommendations that the research put to the management of Century Bottling Company Ltd which included: the management of business organizations should apply management skills in their respective departments by knowing how to set priorities and allocating them according to each individual’s skills and abilities, the management of business organizations should find ways of reasonably applying innovation skills by introducing new products or new quality of existing products and introducing new methods of production and then the management of business organizations should find ways of applying creativity skills in business by creating new ideas. The study findings finally urges future researchers to focus on the following areas: The effects of management planning on the performance of a business organization, the effect of entrepreneurial skills on productivity of a business organization as well as the effect of practical skills on the performance of a business organization.