Effect of managerial competencies on Small and Medium Enterprise (SME) performance

Performance of SMEs have been of concern to researchers all over the world. SMEs in Africa are not performing as they should. Their contribution to gross domestic products is relatively low when compared to other countries in the same stage of development. Their employment generation is also low when compared to other countries. Hence, researchers have in recent times studied variables that could positively influence SME performance. For this paper, managerial competence was studied and its influence on SME performance by reviewing critical empirical studies. From the review of literature, this paper concludes that managerial competencies enhance SME performance. The study recommends that managers should always exhibit competencies such as technical skills, generic skills and conceptual skills to ensure high SME performance. There is a need to intensify more effort on managerial competence among those holding leadership positions. This cascades down to all within the organization. Also, capacity building opportunities should be given to all workers regardless of cadre as they lead different aspects of the operation of the organization.