Entrepreneurial competences, human capital and financial performance among small scale enterprises (SSEs) in Uganda

Abstract

The study was about the Entrepreneurial Competencies, Human Capital and Financial Performance of Small Scale Enterprises (SSEs) in Uganda. It sought to establish the relationship between entrepreneurial competencies and financial performance, human capital and financial performance and the influence of entrepreneurial competencies and human capital on financial performance by testing a conceptual model about these two independent variables on financial performance for Small Scale Enterprises. The sample used for study was 375 owner/managers of the SSEs, who were drawn from the informal sector in Kampala District. The surveyed firms were drawn from latest available information of Uganda Bureau of Statistics Business Register Report, (2006/2007) using purposive sampling. A correlation and regression analysis were done between entrepreneurial competencies, human capital and financial performance. The findings from the study revealed a significant and positive relationship between entrepreneurial competencies and financial performance (Beta=.570, p< .05), it also revealed a positive but insignificant relationship between human capital and financial performance (Beta =.010, p> .05,). The main findings of this that entrepreneurial competencies positively and significantly affect financial performance of Small Scale Enterprises while human capital factors do not significantly affect the financial performance of these firms. The study suggests further research in the area of human capital and entrepreneurship and human capital and performance of firms.