Individual background characteristics, managerial skills and the performance of small-scale enterprises in Mukono municipality, Uganda

Abstract

This study aimed at investigating the factors that influence the performance of small-enterprises in Mukono municipality, Mukono district using cross-sectional data. The study aimed to achieve three main objectives: to examine the influence of individual background characteristics on the performance of small-scale enterprises in Mukono municipality, Uganda; to examine the influence of individual background characteristics on managerial skills of small-scale business owners or managers and to examine the influence of managerial skills on the performance of small-scale enterprises in Mukono Municipality, Uganda. Data analysis was performed with the use of the STATA software version 14 at three levels of analysis: the univariate, bivariate and multivariate levels of analysis. Frequency distribution tables were presented at the univariate level of analysis while chi-square tests were estimated at the bivariate level of analysis to determine whether there is an association between dependent and independent variables. A step-wise approach was employed at multivariate level of analysis to establish whether the strength and direction of variables change as new variables are introduced in the model. Results indicate that females (RRR=0.590; p<0.10), respondents with work experience not being related to current business (RRR=0.542; p<0.05), and ever owning a family business (RRR=0.447; P<0.01), were less likely to have performing small-scale enterprises. However, the results indicate that respondents in the age group 20-24 (RRR=2.637; p<0.05) were more likely to have performing small-scale enterprises while respondents with primary education (RRR=7.718; p<0.05) or tertiary (RRR=2.997; 0.05) were more likely to be unsure if their small-scale enterprises were performing or not. The unsuspected finding, however, is that respondents with no education were instead more likely (RRR=4.371; p<0.10) to have performing small-scale enterprises compared to their counterparts with secondary education. Based on the results, this study therefore advocates for promoting managerial skills, particularly the human skills through trainings, consultation, and friendly workshops among business operators or owners in order to boost performance.