Evaluating Entrepreneurs Competency on the Growth of Small Scale Businesses in the Cape Coast Metropolis

Abstract

The study evaluated entrepreneur’s competency on the growth of small scale businesses. The study, among other objectives, sought to examine the competencies of entrepreneurs in terms of (education, related job experience, knowledge and skills and training), examined the association between entrepreneurs competency on the growth of small businesses and determined competency development strategies and the associated challenges among entrepreneurs in the Mechanic and Beautician sectors in the Cape Coast Metropolis. The study employed a cross-sectional study design. It involved two hundred (200) entrepreneurs. Questionnaire and interview guide were used to collect data. Results were analysed using descriptive statistics. Chi-square test was also used to find out the associations between variables.It was found that almost all the entrepreneurs had at least basic education. Also, greater parts of the entrepreneurs were adjudged to be mainly competent based on their levels of education, working experience, knowledge and skills and training they had. In addition, the findings confirmed that education, job related experience, knowledge and skill as well as training were significantly associated with the growth dimensions (growth in sales, growth in profit, growth in market share, customer satisfaction, employee retention and increased in number of employees.). On-the-job training in the form of apprenticeship was the most important strategy used by the entrepreneurs. However, high cost of training and lack of support from government and other agencies were upsetting their efforts. It is recommended that government should perk up its support for these artisans to enhance their performance and growth. The on-the-job training approach should be sustained due to its associated advantages over the off-the-job type.

Keywords: human capital, small scale business, development, competency, entrepreneurs