Title: Impact of entrepreneurial skills on the firm's performance: evidence from manufacturing SMEs in India

Authors: Balkrishna E. Narkhede; Rupendra S. Nehete; Rakesh D. Raut; Subhash K. Mahajan

Addresses: Production Engineering Department, Veermata Jijabai Technological Institute (V.J.T.I.), Mumbai – 400 019, India ' VJTI, Mumbai, Maharashtra, 400 019, India ' Operations Management, Symbiosis Centre for Management and Human Resources Development, Rajiv Gandhi IT park, Phase-I, Hinjewadi, Pune 411057, India ' Technical Education, Maharashtra State, Mumbai-400 001, India

Abstract: Several studies show that most small and medium businesses fail within their first five years. Although the role of factors such as access to funds and culture has been widely studied, the influence of owner/manager practices and capabilities have generally been ignored. This study has empirically tested a framework identifying the causal links among personal skills, entrepreneurial skills, business skills, and technical skills on firm's performance based on a sample of 360 manufacturing SMEs operating in the manufacture of machinery and equipment, packaging, automobile, and metal processing in India. Test of hypothesis indicate that personal skills, business skills and technical skills were positively related to the firm's performance of SMEs, whereas, entrepreneurial skills were not positively related to firm's performance of SMEs.

Keywords: personal skills; entrepreneurial skills; business skills; technical skills; firm performance; SMEs; India; entrepreneurship; manufacturing industry; small and medium-sized enterprises; owner-managers; machinery and equipment industry; packaging industry; automobile industry; metal processing industry; SME performance.

DOI: 10.1504/IJICBM.2014.059207

International Journal of Indian Culture and Business Management, 2014 Vol.8 No.2, pp.216 - 236

Published online: 07 Jun 2014 *

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