Entrepreneurial Capabilities of Micro and Small-Scale Enterprises (MSEs): Evidence from South Wollo Zone, Ethiopia

Abstract

Micro and Small Enterprises (MSEs) are expected to acquire business knowledge, skills and expertise to profitably operate their business consistently in this contemporary business dynamics. The current study aims to examine the perceived entrepreneurial capabilities of MSEs in the selected town of the south Wollo Zone, Ethiopia. Entrepreneurial capability related data were collected from 78 randomly selected MSEs owner/managers and data were collected through a 5-point Likert scale questionnaire. The mean significant test and correlation results of the study indicated that significant number of MSEs acquired the basic entrepreneurial capabilities (like goal setting, commitment and persistence, information seeking, and opportunity hunting) to run their business. The ranked mean and paired-sample t test result indicated that there is a significant difference on the possession of different entrepreneurial capabilities by MSEs. MSE capability of maintaining the goodwill of their organization is better possessed by MSEs than other entrepreneurial capabilities. Furthermore, MSEs with one entrepreneurial capability are more likely to have other capabilities too. Future researches shall determine the relationship of perceived entrepreneurial capabilities with MSEs’ performance.