The effect of managerial competencies on the performance of small and medium enterprises in Makana Municipality, South Africa.

• Main Authors: Mercy S. Ncube, Tendai Chimucheka
• Format: Article
• Language: English
• Published: AfricaJournals 2019-10-01
• Series: African Journal of Hospitality, Tourism and Leisure
• Subjects: managerial competencies; SMMEs; performance; communication; teamwork; planning
• Online Access: https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_41_vol_8_5__2019_fort_hare.pdf

Small, micro and medium enterprises (SMMEs) are important for economic development, poverty alleviation and employment creation in most developing countries. The primary objective of this study was to investigate the effects of managerial competencies on the performance of SMMEs in Makana Municipality, in the Eastern Cape Province of South Africa. The study followed a quantitative research approach. Data was collected using the survey method by way of a self-administered questionnaire, which was distributed to a sample of 96 SMME owners and managers in Makana Municipality. It was found that communication competencies, planning competencies, self-management competencies, and global awareness competencies have an effect on the performance of the SMMEs. However, teamwork and strategic action competencies did not show any effect on the performance of SMMEs. The study concluded that managerial competencies have an effect on the performance of SMMEs. Having established the effect of managerial competences on the performance of SMMEs in Makana Municipality, recommendations are provided to the government, the municipality as well as to the owners and managers. The government and the local municipality should strengthen support structures that will help SMME operators to develop managerial competencies. The government should also help SMME owners and managers to access training or education in order to improve their managerial competencies. The SMMEs owners and managers should try to attend business seminars and relevant training to equip themselves with the managerial competencies. SMME owners and managers should be prepared to invest in their human capital through training and development, especially in aspects that will help improve their managerial competencies.