The influence of entrepreneurial competencies on small firm performance

This research studies the influence of entrepreneurial competencies on the performance of small enterprises by building a causal model using data obtained from Spanish entrepreneurs. in this model entrepreneurs' competencies influence firm performance, competitive scope, and organisational capability in a direct or indirect way are explained. We have found support for most of our hypotheses. Results indicate that entrepreneurial competence plays an influential role in organisational capability and competitive scope, and also has a direct effect on firm performance. The use of organisational capabilities affects positively the firm performance and it partially mediates the relationship between entrepreneurial competence and firm performance. Although competitive scope is not significantly related to business growth, it is a strong predictor of other performance dimensions, such as efficiency and relative performance. Organisational capability is a strong predictor of competitive scope. The implications and future research directions are discussed.