The Influence of Operational Managerial Competencies of Business Owners and Managers on Performance of Small-Scale Businesses in Sheema Municipality, Sheema District

Abstract

This study assessed the influence of operational managerial competencies on performance of small-scale businesses with special emphasis on the experiences in Sheema Municipality. A cross-sectional design with a quantitative method was used to conduct the study on small-scale businesses in Sheema Municipality. According to the 2021 Sheema Municipality Commercial Office records, the total number of small-scale businesses in Sheema Municipality is 2659, which constituted this study’s target population. This study’s sample size was obtained using Yamane (1967) formula, n = 2659/ (1 + (2659 * 0.052 ) = 347.80902551, which was approximately, 348 people and the study population included small-scale business owners, managers and resourceful people. The correlational research design was used to make inference about the population from drawing from the sample findings. The study employed stratified random sampling in which 309 respondents participated in the study. A self-administered questionnaire was used to obtain the data from small-scale businesses entities. The findings also revealed that for each additional increase in overall rigour of operational managerial competencies of business owners and managers, performance of small-scale businesses in Sheema Municipality was likely to get an average increase of 2.149 units in performance of small-scale businesses (β = 2.149, p = 0.000). It was concluded that business small-scale business attach importance to operational managerial competencies. The study results led to rejection of the null hypothesis of this study and alternative hypothesis stating that operational managerial competencies of business owners and managers significantly influence performance of small-scale businesses in Sheema Municipality was accepted.