Entrepreneurship Skills and Performance of Smes; a Case Study of Aggrey Zone in Rubaga Division-Kampala District

Abstract

Small and Medium Enterprises (SMEs) are important to economic growth and significantly essential to generate profit, increase sales and provide return on investment to the owners of SMEs. Therefore the SMEs growth depends to a great degree on the way entrepreneurship skills have been developed in SMEs. The study thought to examine the “Entrepreneurship Skills and Performance of SMEs; A Case Study of Aggrey Zone In Rubaga Division-Kampala District”

The study adopted a survey research design and employed a stratified random simple sampling. The study used a questionnaire to collect the required data from a sample of 28 SMEs. The data collected was coded, quantified and analyzed quantitatively and qualitatively. Quantitative data was analyzed by the use of statistical package for social sciences (SPSS). The data was analyzed descriptively and inferentially and presented through figures, tables and percentages.

The findings indicate that; the whole Aggrey Zone members have limited entrepreneurship skills particularly in terms of recognising business opportunities, basic business, financial management skills being innovative and communicating effectively in business transactions. Particularly 65% admitted that they lack skills of identifying business opportunities. Similarly, the study indicated that, (96%) of the sales decrease because of failure to communicate effectively with their potential customers/ clients. Above all lack of entrepreneurship skills greatly affected the growth of their businesses in terms return on investment, net profit and sales turnover.

Therefore, it is recommended that the cooperative 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 SMEs join global business chain to create new market and explore business opportunities

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