The relationship between entrepreneurship skills and the performance of small scale businesses in Uganda.

Abstract

The purpose of the study was to find out the relationship between Entrepreneurship skills and Performance of Small Scale Businesses and the case study was Rubaga Division- Kampala District. The study was guided by the following objectives; to establish the relationship technical skills and small scale business performance, to find out how organizational skills relate to small scale business performance and to explore the relationship between leadership skills and small scale business performance. Data was collected with use of questionnaires and the interview guide. The researcher used both qualitative and quantitative methods during collection of data and the questionnaires administered were both open and close ended. The information was analyzed using the Statistical Package for Social Sciences (SPSS) and presented in form of tables, graphs, frequencies, percentages, correlation coefficients and also analyzed in line with the objectives of the study. The findings indicate that; the members of Rubaga Division have limited entrepreneurship skills particularly in terms of recognizing business opportunities, basic business, and financial management skills being innovative and communicating effectively in business transactions. Above all lack of entrepreneurship skills greatly affected the growth of their businesses in terms of return on investment, net profit and sales turnover. Therefore, the researcher recommends that cooperatives should organize training for its members in entrepreneurship skills. They need to be equipped with such skills as separating money between business and household, reinvesting profits in the business, maintaining records of sales and expenses, and thinking proactively about new markets and opportunities for profits. In addition to these strategies, business to business linkages should be explored by entrepreneurs to enable Small scale businesses join global business chain to create new market and explore business opportunities.