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DISSERTATION
PRESENTATION OF
CHAPTER ONE TO FOUR
BY
KIBUUKA MUHAMMAD
Ph.D. Business Management
MANAGERIAL SKILLS ANDMANAGERIAL SKILLS AND
SUCCESS OF SMALL-SCALESUCCESS OF SMALL-SCALE
ENTREPRENEURSENTREPRENEURS
IN KAMPALA,IN KAMPALA,
UGANDAUGANDA
CHAPTER ONECHAPTER ONE
INTRODUCTIONINTRODUCTION
ļ® Development & creation of wealth of a nationDevelopment & creation of wealth of a nation
depends on competitiveness of its firms.depends on competitiveness of its firms.
ļ® The competitiveness of firms depends vitally onThe competitiveness of firms depends vitally on
capabilities, efficiency & competency of itscapabilities, efficiency & competency of its
entrepreneurs & managers (Alvaro,entrepreneurs & managers (Alvaro, et alet al, 2007)., 2007).
ļ® Since in most small enterprises, the entrepreneur onSince in most small enterprises, the entrepreneur on
performs key managerial functionsperforms key managerial functions ((Freiling, 2007Freiling, 2007))
his/her managerial competencies play a great role inhis/her managerial competencies play a great role in
success and that is the major attention of this study.
CHAPTER ONE CONTā€¦CHAPTER ONE CONTā€¦
ļ® Entrepreneurship management field has changed
from initiation and taking of risks (Schumpeter,
1932), to venture management competitiveness
(Hitt et al, 2001)
ļ® The domain of Small-scale entrepreneurs and their
performance, has attracted attention of many
researchers globally (Basil, 2005).
ļ® Since SSEs are believed to contribute enormously to
development and poverty alleviation (Jeya, 2009),
various plans, policies and researches have always
focused at their success factors (Jeya, 2009).
CHAPTER ONE CONTā€¦CHAPTER ONE CONTā€¦
ļ® While small businesses dominate in both developedWhile small businesses dominate in both developed
and developing nations (they contribute over 60% ofand developing nations (they contribute over 60% of
all companies in Malaysia, Philipines, Brazil andall companies in Malaysia, Philipines, Brazil and
India; 90% jobs in U.S; 80% in Japan & 50% inIndia; 90% jobs in U.S; 80% in Japan & 50% in
Germany), In developing countries and Uganda inGermany), In developing countries and Uganda in
particular, their GDP contribution is less than50%,particular, their GDP contribution is less than50%,
(Soni, 2005; Ruffing, 2004).(Soni, 2005; Ruffing, 2004).
CHAPTER ONE CONTā€¦CHAPTER ONE CONTā€¦
ļ® While the role of small-scale entrepreneurs has beenWhile the role of small-scale entrepreneurs has been
remarkably recognised globally, in African context theirremarkably recognised globally, in African context their
contribution is still small, a possible reason why they arecontribution is still small, a possible reason why they are
still poor.still poor.
ļ® Where as SSE challenges are many, their biggestWhere as SSE challenges are many, their biggest
impediment to growth which is almost uniform globally isimpediment to growth which is almost uniform globally is
management skills (others are competition, unfavourablemanagement skills (others are competition, unfavourable
regulations, financial hurdles, political instabilities,regulations, financial hurdles, political instabilities,
inadequate market knowledge, poor technology, managinginadequate market knowledge, poor technology, managing
growth, taxation and customer service, pricing, complicatedgrowth, taxation and customer service, pricing, complicated
labour laws, infrastructural and bureaucratic procedures)labour laws, infrastructural and bureaucratic procedures)
(Soni, 2005) .(Soni, 2005) .
ļ® This studyā€™s specific interest was on mgt skills as keyThis studyā€™s specific interest was on mgt skills as key
inadequacy hindering growth & survival of SSE in Kampalainadequacy hindering growth & survival of SSE in Kampala
CHAPTER ONE CONTā€¦CHAPTER ONE CONTā€¦
ļ® Ugandaā€™s competiveness globally and regionally has beenUgandaā€™s competiveness globally and regionally has been
reported to be low (Ministry of Finance, Planning and Economicreported to be low (Ministry of Finance, Planning and Economic
Development, 2008) & its attributed partly to unsatisfactoryDevelopment, 2008) & its attributed partly to unsatisfactory
performance of the private sector, in which most SSEs fall. Thatperformance of the private sector, in which most SSEs fall. That
is why GoU put up the Competitiveness and Investment Climateis why GoU put up the Competitiveness and Investment Climate
Strategy (2006-2010).Strategy (2006-2010).
ļ® Before 1844, commercial businesses were mainly in BugandaBefore 1844, commercial businesses were mainly in Buganda
where chiefs conducted business on behalf of the King; afterwhere chiefs conducted business on behalf of the King; after
1844, Arabs dominated businesses. After World War II,1844, Arabs dominated businesses. After World War II,
Ugandans demanded economic independence (Ojok, 2000) andUgandans demanded economic independence (Ojok, 2000) and
freedom to gin and export their own cotton. After Independencefreedom to gin and export their own cotton. After Independence
(1962), a few Ugandans in Kampala started SSE for profit(1962), a few Ugandans in Kampala started SSE for profit
(Musiime, 2007), leaving medium and large-scale enterprises to(Musiime, 2007), leaving medium and large-scale enterprises to
Asians, possibly because they lacked skills to manage largeAsians, possibly because they lacked skills to manage large
ventures.ventures.
CHAPTER ONE CONTā€¦CHAPTER ONE CONTā€¦
ļ® Ugandan lacked skills in business know-how,Ugandan lacked skills in business know-how,
bookkeeping, and raising capital, which limited theirbookkeeping, and raising capital, which limited their
success (Musiime, 2007). This became more vivid insuccess (Musiime, 2007). This became more vivid in
1972, when Asians were expelled, local entrepreneurs1972, when Asians were expelled, local entrepreneurs
hardly survived for a year & Uganda was dragged intohardly survived for a year & Uganda was dragged into
economic crisis (Musiime, 2007).economic crisis (Musiime, 2007).
ļ® Of all studies conducted on determinants of SSEOf all studies conducted on determinants of SSE
success in Uganda (e.g.success in Uganda (e.g. Ishengoma & Kappel 2008;Ishengoma & Kappel 2008;
Tushabomwe-Kazooba 2006; Lois & Annette, 2005;Tushabomwe-Kazooba 2006; Lois & Annette, 2005;
Mayanja, 2001; Kiwanuka 1998; Kyeyune, 1996;Mayanja, 2001; Kiwanuka 1998; Kyeyune, 1996;
Lubowa,1996), none of them related it to the three typesLubowa,1996), none of them related it to the three types
of managerial skills, namely 1) conceptual; 2) human;of managerial skills, namely 1) conceptual; 2) human;
and 3) technical skills, a gap this study intended to fill.and 3) technical skills, a gap this study intended to fill.
TheoreticalTheoreticalļ® Several theories explain rise, growth, success & failure of small businesses (e.g.Several theories explain rise, growth, success & failure of small businesses (e.g.
environmental theory, (Hannan & Freeman, 1977) individual theory (Levanderenvironmental theory, (Hannan & Freeman, 1977) individual theory (Levander
& Raccula, 2001& Raccula, 2001)), the Five stages model (Churchill & Lewis, 1983)ā€¦, the Five stages model (Churchill & Lewis, 1983)ā€¦
ļ® Arriving at a generally acceptable theory of small businesses has been aArriving at a generally acceptable theory of small businesses has been a
problem (Churchill & Lewis, 1983; dā€™Amboise, 1988).problem (Churchill & Lewis, 1983; dā€™Amboise, 1988).
ļ® Many theorists focused on a few dimensions like business size, survival, riskMany theorists focused on a few dimensions like business size, survival, risk
taking, innovation and other entrepreneur characteristics (Churchill & Lewis,taking, innovation and other entrepreneur characteristics (Churchill & Lewis,
1983; dā€™Amboise, 1988).1983; dā€™Amboise, 1988).
ļ® Many have talked about managerial characteristics of owner, but have notMany have talked about managerial characteristics of owner, but have not
attempted to specified managerial skills the owner should possess in order toattempted to specified managerial skills the owner should possess in order to
succeed.succeed.
ļ® The word entrepreneur, manager and owner have been used interchangeablyThe word entrepreneur, manager and owner have been used interchangeably
Churchill & Lewis (1983) and dā€™Amboise (1988).Churchill & Lewis (1983) and dā€™Amboise (1988).
ļ® Many times the entrepreneur is the manager and owner, hence words likeMany times the entrepreneur is the manager and owner, hence words like
owner-manager, entrepreneur-manager have risen.owner-manager, entrepreneur-manager have risen.
ļ® This study dwelled on the Five Stages models (Churchill & Lewis, 1983).This study dwelled on the Five Stages models (Churchill & Lewis, 1983). IIt ist is
more elaborate in explaining the rise, growth and failure of small businesses. Inmore elaborate in explaining the rise, growth and failure of small businesses. In
Uganda, no study on this model was found.Uganda, no study on this model was found.
Theoretical Contā€¦Theoretical Contā€¦
ļ® The five stages model (FSM) explains the long run growth pathThe five stages model (FSM) explains the long run growth path
of small businesses. Although has a wide application, it did notof small businesses. Although has a wide application, it did not
mention the key management factors that can bring success atmention the key management factors that can bring success at
different stages of a small business growth.different stages of a small business growth.
ļ® This study wanted to go beyond by examining the extent toThis study wanted to go beyond by examining the extent to
which specific management characteristics can influence successwhich specific management characteristics can influence success
or failure of initiated ventures (Plaschka & Welsch, 1990)or failure of initiated ventures (Plaschka & Welsch, 1990)..
ļ® The study proposed that to be successful in his/her innovationThe study proposed that to be successful in his/her innovation
and risk taking, entrepreneur (small business owner) requiresand risk taking, entrepreneur (small business owner) requires
competence in several managerial abilities. As further supportedcompetence in several managerial abilities. As further supported
byby Mintzberg (in studymode.com, 2010), after initiation stage,Mintzberg (in studymode.com, 2010), after initiation stage,
managerial competences boost managerā€™s ability to respondmanagerial competences boost managerā€™s ability to respond
towards environmental changes.towards environmental changes.
Theoretical Contā€¦Theoretical Contā€¦ļ® The five stages, explains the factors through which theThe five stages, explains the factors through which the
business grows along the stages of the growth path.business grows along the stages of the growth path.
ļ® It indicates that managerial roles and requirements of aIt indicates that managerial roles and requirements of a
small business change as the business grows from one stagesmall business change as the business grows from one stage
to another.to another.
ļ® Most noticeable is that most managerial roles of a smallMost noticeable is that most managerial roles of a small
business rest on the owner in the first, second and thirdbusiness rest on the owner in the first, second and third
stages. But in later stages, the founderā€™s direct managementstages. But in later stages, the founderā€™s direct management
is disengaged.is disengaged.
ļ® This studyā€™s theoretical examination is on the first threeThis studyā€™s theoretical examination is on the first three
stages, where the entrepreneur or owner-manager performsstages, where the entrepreneur or owner-manager performs
most of the managerial functions. This model is depictedmost of the managerial functions. This model is depicted
belowbelow
Theoretical ModelTheoretical Model
Fig. 1: Theoretical Model; The Five Stages Model of Small Business Growth
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Existence Survival Success Take off Resource maturity
Age of Firm Young Mature
Size, dispersion
complexity
Large
Small
Disengage Grow
Adapted from Growth stages of Churchill & Lewis (1983)
Explanation of the theoretical modelExplanation of the theoretical model
ļ® Explanation of the theoretical modelExplanation of the theoretical model
ļ® In existence stage, major concerns are production,In existence stage, major concerns are production,
obtaining customers, marketing and resources.obtaining customers, marketing and resources.
ļ® The owner performs almost all works and directlyThe owner performs almost all works and directly
supervises all business activities. The owner-supervises all business activities. The owner-
manager must have an average level of competencemanager must have an average level of competence
to perform these tasks (Churchill & Lewis, 1983).to perform these tasks (Churchill & Lewis, 1983).
The model does not mention key managerial skillsThe model does not mention key managerial skills
required for entrepreneur to answer these questions.required for entrepreneur to answer these questions.
ļ® We proposed that managerial skills like conceptual,We proposed that managerial skills like conceptual,
human and technical can enhance their ability tohuman and technical can enhance their ability to
deal with these concerns.deal with these concerns.
Explanation of the model contā€¦Explanation of the model contā€¦
ļ® In the survival stage, major concerns areIn the survival stage, major concerns are
relationship between revenue and expenditure,relationship between revenue and expenditure,
customer satisfaction, expansion and profitability.customer satisfaction, expansion and profitability.
ļ® The business still has a few employees.The business still has a few employees.
ļ® Owner-manager is still key in all daily operations.Owner-manager is still key in all daily operations.
ļ® Owner-manager requires managerial competences toOwner-manager requires managerial competences to
move to another level.move to another level.
ļ® This model does not explain the factors that affectThis model does not explain the factors that affect
customer satisfaction, expansion and profitability.customer satisfaction, expansion and profitability.
Explanation of the model contā€¦Explanation of the model contā€¦
ļ® In success stage, major concerns are business size,In success stage, major concerns are business size,
expansion, profitability, opening up branches & ownerā€™sexpansion, profitability, opening up branches & ownerā€™s
satisfaction.satisfaction.
ļ® Owner-manager still key in all daily operations.Owner-manager still key in all daily operations.
ļ® But there is a question of whether the owner should enjoyBut there is a question of whether the owner should enjoy
them the profits or re-invest or open branches.them the profits or re-invest or open branches.
ļ® The owner-manager still requires managerial competencesThe owner-manager still requires managerial competences
to enable him/her select suitable functional managers to taketo enable him/her select suitable functional managers to take
over certain duties and to delegate efficiently.over certain duties and to delegate efficiently.
ļ® We examined whether delegation skills can speed upWe examined whether delegation skills can speed up
business success. Other basic skills required here arebusiness success. Other basic skills required here are
financial, marketing, production, planning, monitoring,financial, marketing, production, planning, monitoring,
adaptation to environmental changes and relationships.adaptation to environmental changes and relationships.
Explanation of the model contā€¦Explanation of the model contā€¦
ļ® Once in success stage, major challenges of growth are overOnce in success stage, major challenges of growth are over
come.come.
ļ® The business has enough money to employ professionalsThe business has enough money to employ professionals
and experts, expand its production and put in place properand experts, expand its production and put in place proper
structures and systems. This studyā€™s major problem was onstructures and systems. This studyā€™s major problem was on
owner-managerā€™s ability to move to the success stage.owner-managerā€™s ability to move to the success stage.
ļ® Finally, the model implies that managerial skills (though notFinally, the model implies that managerial skills (though not
explicitly specified) are more important and required whenexplicitly specified) are more important and required when
the business is still young. We agreed with that notion andthe business is still young. We agreed with that notion and
tested whether specific managerial skills (conceptual,tested whether specific managerial skills (conceptual,
human and technical) can enhance success.human and technical) can enhance success.
CONCEPTUAL PERSPECTIVECONCEPTUAL PERSPECTIVE
ļ® Managerial skills (independent variable), conceptualised as theManagerial skills (independent variable), conceptualised as the
ability of a manager (in this case a small-scale entrepreneur or aability of a manager (in this case a small-scale entrepreneur or a
small business owner) to perform managerial tasks or rolessmall business owner) to perform managerial tasks or roles
effectively and efficiently (Zuzana & Matej, 2007). Three typeseffectively and efficiently (Zuzana & Matej, 2007). Three types
of managerial skills were examined (conceptual, human andof managerial skills were examined (conceptual, human and
technical) against success of SSEs (dependent variable),technical) against success of SSEs (dependent variable),
conceptualised as internal or personal success (measured byconceptualised as internal or personal success (measured by
personal expectations/benefits like profits, sales, personalpersonal expectations/benefits like profits, sales, personal
satisfaction, expansion, and improved life) and external successsatisfaction, expansion, and improved life) and external success
(measured by increased jobs, output, improved quality, relations(measured by increased jobs, output, improved quality, relations
and trained people); long term survival was taken to be both.and trained people); long term survival was taken to be both.
While many studies have been done on success or failure ofWhile many studies have been done on success or failure of
SSEs, in Uganda, no study examined managerial skills andSSEs, in Uganda, no study examined managerial skills and
specifically in terms of Conceptual, Human and Technical,specifically in terms of Conceptual, Human and Technical,
hence the need to cover these conceptual & contextual gaps.hence the need to cover these conceptual & contextual gaps.
CONCEPTUAL MODELCONCEPTUAL MODEL
HUMAN SKI LLS
ā€¢ Social skills (+)
ā€¢ Leading skills (+ )
ā€¢ Motivation skills (Ɨ)
ā€¢ Conflict resolution skills (+ )
ā€¢ Communication skills (+ )
CONCEPTUAL SKI LLS
ā€¢ Planning skills
- Business plan development (+)
- Goal setting (+)
- Resource mobilization (+)
ā€¢ Organizing skills
- Task identification (+)
- Team building (+ )
- Departmentalization (+)
- Delegation (+)
TECHNI CAL SKI LLS
ā€¢ Professional skills (+)
ā€¢ Marketing skills (+)
ā€¢ Budgeting skills (+)
ā€¢ Time management skills (+ )
ā€¢ Legal skills (+ )
I NTERNAL/ PERSONAL
ā€¢ Increased profits
ā€¢ Increased sales
ā€¢ Expansion
ā€¢ Improved life
ā€¢ Long-term survival
EXTERNAL
ā€¢ Increased Job creation
ā€¢ Increased output
ā€¢ Improved relations
ā€¢ Improved quality
ā€¢ Increased trained
people
ā€¢ Increased assets
ā€¢ Long-term survival
MANAGERI AL SKI LLS SUCCESS OF SSEs
Contextual perspectiveContextual perspectiveļ® This study was conducted in Kampala District, the abode of mostThis study was conducted in Kampala District, the abode of most
SSEs. Most small business owners in Kampala acquire skillsSSEs. Most small business owners in Kampala acquire skills
informally through self learning and apprenticeships, limited toinformally through self learning and apprenticeships, limited to
production; so they lack skills to manage ventures (Lois & Annette,production; so they lack skills to manage ventures (Lois & Annette,
2005). Competition in Kampala is stiff, operational costs are high and2005). Competition in Kampala is stiff, operational costs are high and
peoplesā€™ demands are high. All these require competent management.peoplesā€™ demands are high. All these require competent management.
ļ® Mortality rate of new SSE in Uganda is very high (Lois & Annette,Mortality rate of new SSE in Uganda is very high (Lois & Annette,
2005). This incits a question why!2005). This incits a question why!
ļ® In his key note address to theIn his key note address to the Symposium on Modalities for FinancingSymposium on Modalities for Financing
SMEs, Ssendaula (2003) pointed out that financial institutions cannotSMEs, Ssendaula (2003) pointed out that financial institutions cannot
lend these enterprises due to; poor records and accounts management,lend these enterprises due to; poor records and accounts management,
low level of technical and management skills, outdated technologies,low level of technical and management skills, outdated technologies,
unacceptable rates of return, lack of professionalism & networkingunacceptable rates of return, lack of professionalism & networking
skills, poor quality products & ltd knowledge of businessskills, poor quality products & ltd knowledge of business
opportunities. Most of these are managerial.opportunities. Most of these are managerial.
Statement of the ProblemStatement of the Problem
ļ® Most SSEs in Uganda die in first two years, majority employMost SSEs in Uganda die in first two years, majority employ
<10 workers & contribute <20% to GDP (Ishengoma & Kappel,<10 workers & contribute <20% to GDP (Ishengoma & Kappel,
2008; Lois, &2008; Lois, & AnnetteAnnette, 2005). This failure to progress/succeed, 2005). This failure to progress/succeed
is likely to discourage new entrepreneurs, encourage jobis likely to discourage new entrepreneurs, encourage job
seekers and increase unemployment.seekers and increase unemployment.
ļ® While several factors account for entrepreneurial success orWhile several factors account for entrepreneurial success or
failure, (e.g. capital, environment, government support etc.),failure, (e.g. capital, environment, government support etc.),
managerial skills are very crucial (Hisrich & Peters, 1998).managerial skills are very crucial (Hisrich & Peters, 1998).
According to Ssempebwa (1992) in MOFPED (2008), 78% ofAccording to Ssempebwa (1992) in MOFPED (2008), 78% of
the SSEs in Kampala are constrained by inadequate skills,the SSEs in Kampala are constrained by inadequate skills,
including managerial skills.including managerial skills.
ļ® Thus for entrepreneurs to succeed in their entrepreneurialThus for entrepreneurs to succeed in their entrepreneurial
ventures, they must ensure proper management of theirventures, they must ensure proper management of their
ventures, which calls for possession and application of severalventures, which calls for possession and application of several
managerial skills such as Conceptual, Human and Technicalmanagerial skills such as Conceptual, Human and Technical
(George & Johns, 2001)(George & Johns, 2001).. Therefore tTherefore this study wanted tohis study wanted to
examine whether this high rate of SSE failure is due toexamine whether this high rate of SSE failure is due to
inadequate managerial skills or not.inadequate managerial skills or not.
PURPOSE OF THE STUDY
To establish the relationship between the various
dimensions of Managerial skills and success of
SSE in Kampala, and prove or disprove the
theoretical assertions/ hypothetical/
contentions.
Research ObjectivesResearch Objectives
1.1. To investigate the extent to which managerial skillsTo investigate the extent to which managerial skills
were possessed by the SSEs in Kampala.were possessed by the SSEs in Kampala.
2.2. To establish the extent to which SSEs in Kampala areTo establish the extent to which SSEs in Kampala are
successful in their business ventures.successful in their business ventures.
3.3. To establish whether the extent of managerial skillsTo establish whether the extent of managerial skills
possessed and success differ among SSEs inpossessed and success differ among SSEs in
Kampala based on their individual characteristics.Kampala based on their individual characteristics.
4.4. To establish whether managerial skills of SSEs inTo establish whether managerial skills of SSEs in
Kampala are related or can explain their businessKampala are related or can explain their business
success.success.
HypothesesHypotheses
1.1. The extent of managerial skills possessed andThe extent of managerial skills possessed and
success does not significantly differ among SSEs insuccess does not significantly differ among SSEs in
Kampala based on their individual characteristics.Kampala based on their individual characteristics.
2.2. Managerial skills of SSEs in Kampala are notManagerial skills of SSEs in Kampala are not
significantly related to their business success.significantly related to their business success.
METHODOLOGYMETHODOLOGY
DesignDesign
Descriptive survey design; for objectives one and twoDescriptive survey design; for objectives one and two
Ex-post facto; the researcher requested business
owners to give facts that had already taken place and were
existing (Cooper & Schindler, 2008).
Descriptive comparativeDescriptive comparative;; to compare the extent ofto compare the extent of
managerial skills possessed by the SSEs and the extent tomanagerial skills possessed by the SSEs and the extent to
which they are successful based on their individualwhich they are successful based on their individual
characteristics.characteristics.
Descriptive co-relational;Descriptive co-relational; to establish whetherto establish whether
managerial skills of SSEs in Kampala are significantly co-managerial skills of SSEs in Kampala are significantly co-
related to their business successrelated to their business success..
Cross-sectional survey; to collect data from a sample
of Kampala SSEs at one point in time, intending to draw
generalizations on all SMEs there in.
METHODOLOGY CONTā€¦METHODOLOGY CONTā€¦
PopulationPopulation
Target;Target;
All the Small-scale Entrepreneurs or the owners of Small-All the Small-scale Entrepreneurs or the owners of Small-
scale Enterprises (SSEs) in Kampala district Uganda.scale Enterprises (SSEs) in Kampala district Uganda.
There are over 11003 SSE (MoFPED 2008) in Kampala, takingover 11003 SSE (MoFPED 2008) in Kampala, taking
more than 40% of national total.more than 40% of national total.
Sample SizeSample Size
Given a big population of 11003 SSE in Kampala,Given a big population of 11003 SSE in Kampala,
there was a need for sampling to minimize timethere was a need for sampling to minimize time
and costs. Sloveneā€™s formula (due to itsand costs. Sloveneā€™s formula (due to its
consistency) was used to come up with a sampleconsistency) was used to come up with a sample
ofof 386 SSEs
Sampling ProceduresSampling Procedures
Purposive samplingPurposive sampling to; inclusion andto; inclusion and
exclusion criteria setexclusion criteria set
Stratified according toStratified according to Divisions into fiveDivisions into five
DivisionsDivisions
Data on the number of SSEs in each Division was notData on the number of SSEs in each Division was not
available.available.
Proportionate or quotaProportionate or quota sampling was applied tosampling was applied to
select 77 firms from each Divisionselect 77 firms from each Division..
ConvenientConvenient sampling was employed to finally selectsampling was employed to finally select
respondents.respondents. The researcher did not access any listThe researcher did not access any list
of SSEs in Kampala and the nature of their distributionof SSEs in Kampala and the nature of their distribution
could not warrant use random sampling techniques.could not warrant use random sampling techniques.
Research InstrumentsResearch Instruments
Non standardized questionnaires (Non standardized questionnaires (TheThe
researcher did not access any standardisedresearcher did not access any standardised
instrument for measuring study constructsinstrument for measuring study constructs ))
1. Face sheet (factual questions used)1. Face sheet (factual questions used)
2. Managerial skills2. Managerial skills
3. Entrepreneurial success3. Entrepreneurial success
All questions for 2 & 3 were closed-ended and based onAll questions for 2 & 3 were closed-ended and based on
five point Likert Scales, ranging from one to five,five point Likert Scales, ranging from one to five,
where 1=Very little or no skill at all; 2=Little skills; 3where 1=Very little or no skill at all; 2=Little skills; 3
= moderate skills; 4 = Much skills; and 5=Very much= moderate skills; 4 = Much skills; and 5=Very much
skills.skills. The two variables were measured using opinions of
SSEs, hence the application of Likert based questions (Likert,(Likert,
1932).1932).
DATA GATHERING PROCEDURES
BEFORE ADMIN. OF QUESTIONNAIRES
1. Introduction letter from SPGSR
2. Validity and reliability tests
3. Briefing of research assistants
4. Sampling and distribution of questionnaires
DURING THE ADMIN. OF QUESTIONNAIRES
1. Briefing of respondents
2. Retrieval of questionnaires
AFTER THE ADMIN.OF QUESTIONNAIRES
Entered, edited, diagnostic tests and organization of
data through SPSS
Analysed and then interpreted results
Data AnalysisData Analysis
Descriptive Data AnalysisDescriptive Data Analysis
1. Frequency and percentage distributions, for demographic1. Frequency and percentage distributions, for demographic
characteristics of respondentscharacteristics of respondents
2. Means for describing extent to which SSEs possessed the three types2. Means for describing extent to which SSEs possessed the three types
of managerial skills as well as the extent to which they wereof managerial skills as well as the extent to which they were
successful (internally and externally)successful (internally and externally)
*Item analysis illustrated the strengths and weaknesses of SSEs on*Item analysis illustrated the strengths and weaknesses of SSEs on
the two variables of the study. This catered for objectives one andthe two variables of the study. This catered for objectives one and
two.two.
Comparative Data AnalysisComparative Data Analysis
3. The studentā€™s two independent samples t-test and OneWay ANOVA3. The studentā€™s two independent samples t-test and OneWay ANOVA
for differences in managerial skills possessed and extent of success.for differences in managerial skills possessed and extent of success.
This catered for objective three.This catered for objective three.
Correlative Data AnalysisCorrelative Data Analysis
4. Pearson linear correlation coefficient to establish whether managerial4. Pearson linear correlation coefficient to establish whether managerial
skills possessed are co-related with successskills possessed are co-related with success
5. Regression analysis, to establish whether the managerial skills5. Regression analysis, to establish whether the managerial skills
possessed can predict the extent to which the SSEs were successful.possessed can predict the extent to which the SSEs were successful.
Tools in 4 &5 were used to achieve objective four.Tools in 4 &5 were used to achieve objective four.
ETHICAL CONSIDERATIONS
1. PERMISSION TO CONDUCT THE STUDY
2. CODING OF QUESTIONNAIRES
3. RESPONDENTS TO SIGN THE INFORMED
CONSENT
4. CITATIONS AND REFERENCING
5.FINDINGS SHALL BE PRESENTED IN
GENERALIZED MANNER
LIMITATIONS
1. CONFOUNDING VARIABLES
2. UNCONTROLLED SETTINGS
3. TESTING
4. INSTRUMENTATION
5. ATTRITION
THANK YOU VERY MUCH
FOR LISTENING!!!

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Managerial skills and success of Small-scale entrepreneurs in Kampala Uganda

  • 1. DISSERTATION PRESENTATION OF CHAPTER ONE TO FOUR BY KIBUUKA MUHAMMAD Ph.D. Business Management
  • 2. MANAGERIAL SKILLS ANDMANAGERIAL SKILLS AND SUCCESS OF SMALL-SCALESUCCESS OF SMALL-SCALE ENTREPRENEURSENTREPRENEURS IN KAMPALA,IN KAMPALA, UGANDAUGANDA
  • 3. CHAPTER ONECHAPTER ONE INTRODUCTIONINTRODUCTION ļ® Development & creation of wealth of a nationDevelopment & creation of wealth of a nation depends on competitiveness of its firms.depends on competitiveness of its firms. ļ® The competitiveness of firms depends vitally onThe competitiveness of firms depends vitally on capabilities, efficiency & competency of itscapabilities, efficiency & competency of its entrepreneurs & managers (Alvaro,entrepreneurs & managers (Alvaro, et alet al, 2007)., 2007). ļ® Since in most small enterprises, the entrepreneur onSince in most small enterprises, the entrepreneur on performs key managerial functionsperforms key managerial functions ((Freiling, 2007Freiling, 2007)) his/her managerial competencies play a great role inhis/her managerial competencies play a great role in success and that is the major attention of this study.
  • 4. CHAPTER ONE CONTā€¦CHAPTER ONE CONTā€¦ ļ® Entrepreneurship management field has changed from initiation and taking of risks (Schumpeter, 1932), to venture management competitiveness (Hitt et al, 2001) ļ® The domain of Small-scale entrepreneurs and their performance, has attracted attention of many researchers globally (Basil, 2005). ļ® Since SSEs are believed to contribute enormously to development and poverty alleviation (Jeya, 2009), various plans, policies and researches have always focused at their success factors (Jeya, 2009).
  • 5. CHAPTER ONE CONTā€¦CHAPTER ONE CONTā€¦ ļ® While small businesses dominate in both developedWhile small businesses dominate in both developed and developing nations (they contribute over 60% ofand developing nations (they contribute over 60% of all companies in Malaysia, Philipines, Brazil andall companies in Malaysia, Philipines, Brazil and India; 90% jobs in U.S; 80% in Japan & 50% inIndia; 90% jobs in U.S; 80% in Japan & 50% in Germany), In developing countries and Uganda inGermany), In developing countries and Uganda in particular, their GDP contribution is less than50%,particular, their GDP contribution is less than50%, (Soni, 2005; Ruffing, 2004).(Soni, 2005; Ruffing, 2004).
  • 6. CHAPTER ONE CONTā€¦CHAPTER ONE CONTā€¦ ļ® While the role of small-scale entrepreneurs has beenWhile the role of small-scale entrepreneurs has been remarkably recognised globally, in African context theirremarkably recognised globally, in African context their contribution is still small, a possible reason why they arecontribution is still small, a possible reason why they are still poor.still poor. ļ® Where as SSE challenges are many, their biggestWhere as SSE challenges are many, their biggest impediment to growth which is almost uniform globally isimpediment to growth which is almost uniform globally is management skills (others are competition, unfavourablemanagement skills (others are competition, unfavourable regulations, financial hurdles, political instabilities,regulations, financial hurdles, political instabilities, inadequate market knowledge, poor technology, managinginadequate market knowledge, poor technology, managing growth, taxation and customer service, pricing, complicatedgrowth, taxation and customer service, pricing, complicated labour laws, infrastructural and bureaucratic procedures)labour laws, infrastructural and bureaucratic procedures) (Soni, 2005) .(Soni, 2005) . ļ® This studyā€™s specific interest was on mgt skills as keyThis studyā€™s specific interest was on mgt skills as key inadequacy hindering growth & survival of SSE in Kampalainadequacy hindering growth & survival of SSE in Kampala
  • 7. CHAPTER ONE CONTā€¦CHAPTER ONE CONTā€¦ ļ® Ugandaā€™s competiveness globally and regionally has beenUgandaā€™s competiveness globally and regionally has been reported to be low (Ministry of Finance, Planning and Economicreported to be low (Ministry of Finance, Planning and Economic Development, 2008) & its attributed partly to unsatisfactoryDevelopment, 2008) & its attributed partly to unsatisfactory performance of the private sector, in which most SSEs fall. Thatperformance of the private sector, in which most SSEs fall. That is why GoU put up the Competitiveness and Investment Climateis why GoU put up the Competitiveness and Investment Climate Strategy (2006-2010).Strategy (2006-2010). ļ® Before 1844, commercial businesses were mainly in BugandaBefore 1844, commercial businesses were mainly in Buganda where chiefs conducted business on behalf of the King; afterwhere chiefs conducted business on behalf of the King; after 1844, Arabs dominated businesses. After World War II,1844, Arabs dominated businesses. After World War II, Ugandans demanded economic independence (Ojok, 2000) andUgandans demanded economic independence (Ojok, 2000) and freedom to gin and export their own cotton. After Independencefreedom to gin and export their own cotton. After Independence (1962), a few Ugandans in Kampala started SSE for profit(1962), a few Ugandans in Kampala started SSE for profit (Musiime, 2007), leaving medium and large-scale enterprises to(Musiime, 2007), leaving medium and large-scale enterprises to Asians, possibly because they lacked skills to manage largeAsians, possibly because they lacked skills to manage large ventures.ventures.
  • 8. CHAPTER ONE CONTā€¦CHAPTER ONE CONTā€¦ ļ® Ugandan lacked skills in business know-how,Ugandan lacked skills in business know-how, bookkeeping, and raising capital, which limited theirbookkeeping, and raising capital, which limited their success (Musiime, 2007). This became more vivid insuccess (Musiime, 2007). This became more vivid in 1972, when Asians were expelled, local entrepreneurs1972, when Asians were expelled, local entrepreneurs hardly survived for a year & Uganda was dragged intohardly survived for a year & Uganda was dragged into economic crisis (Musiime, 2007).economic crisis (Musiime, 2007). ļ® Of all studies conducted on determinants of SSEOf all studies conducted on determinants of SSE success in Uganda (e.g.success in Uganda (e.g. Ishengoma & Kappel 2008;Ishengoma & Kappel 2008; Tushabomwe-Kazooba 2006; Lois & Annette, 2005;Tushabomwe-Kazooba 2006; Lois & Annette, 2005; Mayanja, 2001; Kiwanuka 1998; Kyeyune, 1996;Mayanja, 2001; Kiwanuka 1998; Kyeyune, 1996; Lubowa,1996), none of them related it to the three typesLubowa,1996), none of them related it to the three types of managerial skills, namely 1) conceptual; 2) human;of managerial skills, namely 1) conceptual; 2) human; and 3) technical skills, a gap this study intended to fill.and 3) technical skills, a gap this study intended to fill.
  • 9. TheoreticalTheoreticalļ® Several theories explain rise, growth, success & failure of small businesses (e.g.Several theories explain rise, growth, success & failure of small businesses (e.g. environmental theory, (Hannan & Freeman, 1977) individual theory (Levanderenvironmental theory, (Hannan & Freeman, 1977) individual theory (Levander & Raccula, 2001& Raccula, 2001)), the Five stages model (Churchill & Lewis, 1983)ā€¦, the Five stages model (Churchill & Lewis, 1983)ā€¦ ļ® Arriving at a generally acceptable theory of small businesses has been aArriving at a generally acceptable theory of small businesses has been a problem (Churchill & Lewis, 1983; dā€™Amboise, 1988).problem (Churchill & Lewis, 1983; dā€™Amboise, 1988). ļ® Many theorists focused on a few dimensions like business size, survival, riskMany theorists focused on a few dimensions like business size, survival, risk taking, innovation and other entrepreneur characteristics (Churchill & Lewis,taking, innovation and other entrepreneur characteristics (Churchill & Lewis, 1983; dā€™Amboise, 1988).1983; dā€™Amboise, 1988). ļ® Many have talked about managerial characteristics of owner, but have notMany have talked about managerial characteristics of owner, but have not attempted to specified managerial skills the owner should possess in order toattempted to specified managerial skills the owner should possess in order to succeed.succeed. ļ® The word entrepreneur, manager and owner have been used interchangeablyThe word entrepreneur, manager and owner have been used interchangeably Churchill & Lewis (1983) and dā€™Amboise (1988).Churchill & Lewis (1983) and dā€™Amboise (1988). ļ® Many times the entrepreneur is the manager and owner, hence words likeMany times the entrepreneur is the manager and owner, hence words like owner-manager, entrepreneur-manager have risen.owner-manager, entrepreneur-manager have risen. ļ® This study dwelled on the Five Stages models (Churchill & Lewis, 1983).This study dwelled on the Five Stages models (Churchill & Lewis, 1983). IIt ist is more elaborate in explaining the rise, growth and failure of small businesses. Inmore elaborate in explaining the rise, growth and failure of small businesses. In Uganda, no study on this model was found.Uganda, no study on this model was found.
  • 10. Theoretical Contā€¦Theoretical Contā€¦ ļ® The five stages model (FSM) explains the long run growth pathThe five stages model (FSM) explains the long run growth path of small businesses. Although has a wide application, it did notof small businesses. Although has a wide application, it did not mention the key management factors that can bring success atmention the key management factors that can bring success at different stages of a small business growth.different stages of a small business growth. ļ® This study wanted to go beyond by examining the extent toThis study wanted to go beyond by examining the extent to which specific management characteristics can influence successwhich specific management characteristics can influence success or failure of initiated ventures (Plaschka & Welsch, 1990)or failure of initiated ventures (Plaschka & Welsch, 1990).. ļ® The study proposed that to be successful in his/her innovationThe study proposed that to be successful in his/her innovation and risk taking, entrepreneur (small business owner) requiresand risk taking, entrepreneur (small business owner) requires competence in several managerial abilities. As further supportedcompetence in several managerial abilities. As further supported byby Mintzberg (in studymode.com, 2010), after initiation stage,Mintzberg (in studymode.com, 2010), after initiation stage, managerial competences boost managerā€™s ability to respondmanagerial competences boost managerā€™s ability to respond towards environmental changes.towards environmental changes.
  • 11. Theoretical Contā€¦Theoretical Contā€¦ļ® The five stages, explains the factors through which theThe five stages, explains the factors through which the business grows along the stages of the growth path.business grows along the stages of the growth path. ļ® It indicates that managerial roles and requirements of aIt indicates that managerial roles and requirements of a small business change as the business grows from one stagesmall business change as the business grows from one stage to another.to another. ļ® Most noticeable is that most managerial roles of a smallMost noticeable is that most managerial roles of a small business rest on the owner in the first, second and thirdbusiness rest on the owner in the first, second and third stages. But in later stages, the founderā€™s direct managementstages. But in later stages, the founderā€™s direct management is disengaged.is disengaged. ļ® This studyā€™s theoretical examination is on the first threeThis studyā€™s theoretical examination is on the first three stages, where the entrepreneur or owner-manager performsstages, where the entrepreneur or owner-manager performs most of the managerial functions. This model is depictedmost of the managerial functions. This model is depicted belowbelow
  • 12. Theoretical ModelTheoretical Model Fig. 1: Theoretical Model; The Five Stages Model of Small Business Growth Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Existence Survival Success Take off Resource maturity Age of Firm Young Mature Size, dispersion complexity Large Small Disengage Grow Adapted from Growth stages of Churchill & Lewis (1983)
  • 13. Explanation of the theoretical modelExplanation of the theoretical model ļ® Explanation of the theoretical modelExplanation of the theoretical model ļ® In existence stage, major concerns are production,In existence stage, major concerns are production, obtaining customers, marketing and resources.obtaining customers, marketing and resources. ļ® The owner performs almost all works and directlyThe owner performs almost all works and directly supervises all business activities. The owner-supervises all business activities. The owner- manager must have an average level of competencemanager must have an average level of competence to perform these tasks (Churchill & Lewis, 1983).to perform these tasks (Churchill & Lewis, 1983). The model does not mention key managerial skillsThe model does not mention key managerial skills required for entrepreneur to answer these questions.required for entrepreneur to answer these questions. ļ® We proposed that managerial skills like conceptual,We proposed that managerial skills like conceptual, human and technical can enhance their ability tohuman and technical can enhance their ability to deal with these concerns.deal with these concerns.
  • 14. Explanation of the model contā€¦Explanation of the model contā€¦ ļ® In the survival stage, major concerns areIn the survival stage, major concerns are relationship between revenue and expenditure,relationship between revenue and expenditure, customer satisfaction, expansion and profitability.customer satisfaction, expansion and profitability. ļ® The business still has a few employees.The business still has a few employees. ļ® Owner-manager is still key in all daily operations.Owner-manager is still key in all daily operations. ļ® Owner-manager requires managerial competences toOwner-manager requires managerial competences to move to another level.move to another level. ļ® This model does not explain the factors that affectThis model does not explain the factors that affect customer satisfaction, expansion and profitability.customer satisfaction, expansion and profitability.
  • 15. Explanation of the model contā€¦Explanation of the model contā€¦ ļ® In success stage, major concerns are business size,In success stage, major concerns are business size, expansion, profitability, opening up branches & ownerā€™sexpansion, profitability, opening up branches & ownerā€™s satisfaction.satisfaction. ļ® Owner-manager still key in all daily operations.Owner-manager still key in all daily operations. ļ® But there is a question of whether the owner should enjoyBut there is a question of whether the owner should enjoy them the profits or re-invest or open branches.them the profits or re-invest or open branches. ļ® The owner-manager still requires managerial competencesThe owner-manager still requires managerial competences to enable him/her select suitable functional managers to taketo enable him/her select suitable functional managers to take over certain duties and to delegate efficiently.over certain duties and to delegate efficiently. ļ® We examined whether delegation skills can speed upWe examined whether delegation skills can speed up business success. Other basic skills required here arebusiness success. Other basic skills required here are financial, marketing, production, planning, monitoring,financial, marketing, production, planning, monitoring, adaptation to environmental changes and relationships.adaptation to environmental changes and relationships.
  • 16. Explanation of the model contā€¦Explanation of the model contā€¦ ļ® Once in success stage, major challenges of growth are overOnce in success stage, major challenges of growth are over come.come. ļ® The business has enough money to employ professionalsThe business has enough money to employ professionals and experts, expand its production and put in place properand experts, expand its production and put in place proper structures and systems. This studyā€™s major problem was onstructures and systems. This studyā€™s major problem was on owner-managerā€™s ability to move to the success stage.owner-managerā€™s ability to move to the success stage. ļ® Finally, the model implies that managerial skills (though notFinally, the model implies that managerial skills (though not explicitly specified) are more important and required whenexplicitly specified) are more important and required when the business is still young. We agreed with that notion andthe business is still young. We agreed with that notion and tested whether specific managerial skills (conceptual,tested whether specific managerial skills (conceptual, human and technical) can enhance success.human and technical) can enhance success.
  • 17. CONCEPTUAL PERSPECTIVECONCEPTUAL PERSPECTIVE ļ® Managerial skills (independent variable), conceptualised as theManagerial skills (independent variable), conceptualised as the ability of a manager (in this case a small-scale entrepreneur or aability of a manager (in this case a small-scale entrepreneur or a small business owner) to perform managerial tasks or rolessmall business owner) to perform managerial tasks or roles effectively and efficiently (Zuzana & Matej, 2007). Three typeseffectively and efficiently (Zuzana & Matej, 2007). Three types of managerial skills were examined (conceptual, human andof managerial skills were examined (conceptual, human and technical) against success of SSEs (dependent variable),technical) against success of SSEs (dependent variable), conceptualised as internal or personal success (measured byconceptualised as internal or personal success (measured by personal expectations/benefits like profits, sales, personalpersonal expectations/benefits like profits, sales, personal satisfaction, expansion, and improved life) and external successsatisfaction, expansion, and improved life) and external success (measured by increased jobs, output, improved quality, relations(measured by increased jobs, output, improved quality, relations and trained people); long term survival was taken to be both.and trained people); long term survival was taken to be both. While many studies have been done on success or failure ofWhile many studies have been done on success or failure of SSEs, in Uganda, no study examined managerial skills andSSEs, in Uganda, no study examined managerial skills and specifically in terms of Conceptual, Human and Technical,specifically in terms of Conceptual, Human and Technical, hence the need to cover these conceptual & contextual gaps.hence the need to cover these conceptual & contextual gaps.
  • 18. CONCEPTUAL MODELCONCEPTUAL MODEL HUMAN SKI LLS ā€¢ Social skills (+) ā€¢ Leading skills (+ ) ā€¢ Motivation skills (Ɨ) ā€¢ Conflict resolution skills (+ ) ā€¢ Communication skills (+ ) CONCEPTUAL SKI LLS ā€¢ Planning skills - Business plan development (+) - Goal setting (+) - Resource mobilization (+) ā€¢ Organizing skills - Task identification (+) - Team building (+ ) - Departmentalization (+) - Delegation (+) TECHNI CAL SKI LLS ā€¢ Professional skills (+) ā€¢ Marketing skills (+) ā€¢ Budgeting skills (+) ā€¢ Time management skills (+ ) ā€¢ Legal skills (+ ) I NTERNAL/ PERSONAL ā€¢ Increased profits ā€¢ Increased sales ā€¢ Expansion ā€¢ Improved life ā€¢ Long-term survival EXTERNAL ā€¢ Increased Job creation ā€¢ Increased output ā€¢ Improved relations ā€¢ Improved quality ā€¢ Increased trained people ā€¢ Increased assets ā€¢ Long-term survival MANAGERI AL SKI LLS SUCCESS OF SSEs
  • 19. Contextual perspectiveContextual perspectiveļ® This study was conducted in Kampala District, the abode of mostThis study was conducted in Kampala District, the abode of most SSEs. Most small business owners in Kampala acquire skillsSSEs. Most small business owners in Kampala acquire skills informally through self learning and apprenticeships, limited toinformally through self learning and apprenticeships, limited to production; so they lack skills to manage ventures (Lois & Annette,production; so they lack skills to manage ventures (Lois & Annette, 2005). Competition in Kampala is stiff, operational costs are high and2005). Competition in Kampala is stiff, operational costs are high and peoplesā€™ demands are high. All these require competent management.peoplesā€™ demands are high. All these require competent management. ļ® Mortality rate of new SSE in Uganda is very high (Lois & Annette,Mortality rate of new SSE in Uganda is very high (Lois & Annette, 2005). This incits a question why!2005). This incits a question why! ļ® In his key note address to theIn his key note address to the Symposium on Modalities for FinancingSymposium on Modalities for Financing SMEs, Ssendaula (2003) pointed out that financial institutions cannotSMEs, Ssendaula (2003) pointed out that financial institutions cannot lend these enterprises due to; poor records and accounts management,lend these enterprises due to; poor records and accounts management, low level of technical and management skills, outdated technologies,low level of technical and management skills, outdated technologies, unacceptable rates of return, lack of professionalism & networkingunacceptable rates of return, lack of professionalism & networking skills, poor quality products & ltd knowledge of businessskills, poor quality products & ltd knowledge of business opportunities. Most of these are managerial.opportunities. Most of these are managerial.
  • 20. Statement of the ProblemStatement of the Problem ļ® Most SSEs in Uganda die in first two years, majority employMost SSEs in Uganda die in first two years, majority employ <10 workers & contribute <20% to GDP (Ishengoma & Kappel,<10 workers & contribute <20% to GDP (Ishengoma & Kappel, 2008; Lois, &2008; Lois, & AnnetteAnnette, 2005). This failure to progress/succeed, 2005). This failure to progress/succeed is likely to discourage new entrepreneurs, encourage jobis likely to discourage new entrepreneurs, encourage job seekers and increase unemployment.seekers and increase unemployment. ļ® While several factors account for entrepreneurial success orWhile several factors account for entrepreneurial success or failure, (e.g. capital, environment, government support etc.),failure, (e.g. capital, environment, government support etc.), managerial skills are very crucial (Hisrich & Peters, 1998).managerial skills are very crucial (Hisrich & Peters, 1998). According to Ssempebwa (1992) in MOFPED (2008), 78% ofAccording to Ssempebwa (1992) in MOFPED (2008), 78% of the SSEs in Kampala are constrained by inadequate skills,the SSEs in Kampala are constrained by inadequate skills, including managerial skills.including managerial skills. ļ® Thus for entrepreneurs to succeed in their entrepreneurialThus for entrepreneurs to succeed in their entrepreneurial ventures, they must ensure proper management of theirventures, they must ensure proper management of their ventures, which calls for possession and application of severalventures, which calls for possession and application of several managerial skills such as Conceptual, Human and Technicalmanagerial skills such as Conceptual, Human and Technical (George & Johns, 2001)(George & Johns, 2001).. Therefore tTherefore this study wanted tohis study wanted to examine whether this high rate of SSE failure is due toexamine whether this high rate of SSE failure is due to inadequate managerial skills or not.inadequate managerial skills or not.
  • 21. PURPOSE OF THE STUDY To establish the relationship between the various dimensions of Managerial skills and success of SSE in Kampala, and prove or disprove the theoretical assertions/ hypothetical/ contentions.
  • 22. Research ObjectivesResearch Objectives 1.1. To investigate the extent to which managerial skillsTo investigate the extent to which managerial skills were possessed by the SSEs in Kampala.were possessed by the SSEs in Kampala. 2.2. To establish the extent to which SSEs in Kampala areTo establish the extent to which SSEs in Kampala are successful in their business ventures.successful in their business ventures. 3.3. To establish whether the extent of managerial skillsTo establish whether the extent of managerial skills possessed and success differ among SSEs inpossessed and success differ among SSEs in Kampala based on their individual characteristics.Kampala based on their individual characteristics. 4.4. To establish whether managerial skills of SSEs inTo establish whether managerial skills of SSEs in Kampala are related or can explain their businessKampala are related or can explain their business success.success.
  • 23. HypothesesHypotheses 1.1. The extent of managerial skills possessed andThe extent of managerial skills possessed and success does not significantly differ among SSEs insuccess does not significantly differ among SSEs in Kampala based on their individual characteristics.Kampala based on their individual characteristics. 2.2. Managerial skills of SSEs in Kampala are notManagerial skills of SSEs in Kampala are not significantly related to their business success.significantly related to their business success.
  • 24. METHODOLOGYMETHODOLOGY DesignDesign Descriptive survey design; for objectives one and twoDescriptive survey design; for objectives one and two Ex-post facto; the researcher requested business owners to give facts that had already taken place and were existing (Cooper & Schindler, 2008). Descriptive comparativeDescriptive comparative;; to compare the extent ofto compare the extent of managerial skills possessed by the SSEs and the extent tomanagerial skills possessed by the SSEs and the extent to which they are successful based on their individualwhich they are successful based on their individual characteristics.characteristics. Descriptive co-relational;Descriptive co-relational; to establish whetherto establish whether managerial skills of SSEs in Kampala are significantly co-managerial skills of SSEs in Kampala are significantly co- related to their business successrelated to their business success.. Cross-sectional survey; to collect data from a sample of Kampala SSEs at one point in time, intending to draw generalizations on all SMEs there in.
  • 25. METHODOLOGY CONTā€¦METHODOLOGY CONTā€¦ PopulationPopulation Target;Target; All the Small-scale Entrepreneurs or the owners of Small-All the Small-scale Entrepreneurs or the owners of Small- scale Enterprises (SSEs) in Kampala district Uganda.scale Enterprises (SSEs) in Kampala district Uganda. There are over 11003 SSE (MoFPED 2008) in Kampala, takingover 11003 SSE (MoFPED 2008) in Kampala, taking more than 40% of national total.more than 40% of national total. Sample SizeSample Size Given a big population of 11003 SSE in Kampala,Given a big population of 11003 SSE in Kampala, there was a need for sampling to minimize timethere was a need for sampling to minimize time and costs. Sloveneā€™s formula (due to itsand costs. Sloveneā€™s formula (due to its consistency) was used to come up with a sampleconsistency) was used to come up with a sample ofof 386 SSEs
  • 26. Sampling ProceduresSampling Procedures Purposive samplingPurposive sampling to; inclusion andto; inclusion and exclusion criteria setexclusion criteria set Stratified according toStratified according to Divisions into fiveDivisions into five DivisionsDivisions Data on the number of SSEs in each Division was notData on the number of SSEs in each Division was not available.available. Proportionate or quotaProportionate or quota sampling was applied tosampling was applied to select 77 firms from each Divisionselect 77 firms from each Division.. ConvenientConvenient sampling was employed to finally selectsampling was employed to finally select respondents.respondents. The researcher did not access any listThe researcher did not access any list of SSEs in Kampala and the nature of their distributionof SSEs in Kampala and the nature of their distribution could not warrant use random sampling techniques.could not warrant use random sampling techniques.
  • 27. Research InstrumentsResearch Instruments Non standardized questionnaires (Non standardized questionnaires (TheThe researcher did not access any standardisedresearcher did not access any standardised instrument for measuring study constructsinstrument for measuring study constructs )) 1. Face sheet (factual questions used)1. Face sheet (factual questions used) 2. Managerial skills2. Managerial skills 3. Entrepreneurial success3. Entrepreneurial success All questions for 2 & 3 were closed-ended and based onAll questions for 2 & 3 were closed-ended and based on five point Likert Scales, ranging from one to five,five point Likert Scales, ranging from one to five, where 1=Very little or no skill at all; 2=Little skills; 3where 1=Very little or no skill at all; 2=Little skills; 3 = moderate skills; 4 = Much skills; and 5=Very much= moderate skills; 4 = Much skills; and 5=Very much skills.skills. The two variables were measured using opinions of SSEs, hence the application of Likert based questions (Likert,(Likert, 1932).1932).
  • 28. DATA GATHERING PROCEDURES BEFORE ADMIN. OF QUESTIONNAIRES 1. Introduction letter from SPGSR 2. Validity and reliability tests 3. Briefing of research assistants 4. Sampling and distribution of questionnaires DURING THE ADMIN. OF QUESTIONNAIRES 1. Briefing of respondents 2. Retrieval of questionnaires AFTER THE ADMIN.OF QUESTIONNAIRES Entered, edited, diagnostic tests and organization of data through SPSS Analysed and then interpreted results
  • 29. Data AnalysisData Analysis Descriptive Data AnalysisDescriptive Data Analysis 1. Frequency and percentage distributions, for demographic1. Frequency and percentage distributions, for demographic characteristics of respondentscharacteristics of respondents 2. Means for describing extent to which SSEs possessed the three types2. Means for describing extent to which SSEs possessed the three types of managerial skills as well as the extent to which they wereof managerial skills as well as the extent to which they were successful (internally and externally)successful (internally and externally) *Item analysis illustrated the strengths and weaknesses of SSEs on*Item analysis illustrated the strengths and weaknesses of SSEs on the two variables of the study. This catered for objectives one andthe two variables of the study. This catered for objectives one and two.two. Comparative Data AnalysisComparative Data Analysis 3. The studentā€™s two independent samples t-test and OneWay ANOVA3. The studentā€™s two independent samples t-test and OneWay ANOVA for differences in managerial skills possessed and extent of success.for differences in managerial skills possessed and extent of success. This catered for objective three.This catered for objective three. Correlative Data AnalysisCorrelative Data Analysis 4. Pearson linear correlation coefficient to establish whether managerial4. Pearson linear correlation coefficient to establish whether managerial skills possessed are co-related with successskills possessed are co-related with success 5. Regression analysis, to establish whether the managerial skills5. Regression analysis, to establish whether the managerial skills possessed can predict the extent to which the SSEs were successful.possessed can predict the extent to which the SSEs were successful. Tools in 4 &5 were used to achieve objective four.Tools in 4 &5 were used to achieve objective four.
  • 30. ETHICAL CONSIDERATIONS 1. PERMISSION TO CONDUCT THE STUDY 2. CODING OF QUESTIONNAIRES 3. RESPONDENTS TO SIGN THE INFORMED CONSENT 4. CITATIONS AND REFERENCING 5.FINDINGS SHALL BE PRESENTED IN GENERALIZED MANNER
  • 31. LIMITATIONS 1. CONFOUNDING VARIABLES 2. UNCONTROLLED SETTINGS 3. TESTING 4. INSTRUMENTATION 5. ATTRITION
  • 32. THANK YOU VERY MUCH FOR LISTENING!!!