Entrepreneurial Skills and the Success of Small and Medium-Scale Enterprises (SMEs): Wa Municipality, Ghana

Abstract

This study explored the extent to which entrepreneurial skills are critical for the success of Small and Medium-Scale Enterprises (SMEs) in the Wa Municipality using demographic factors (Age, gender, and educational level), innovativeness, calculated risk-taking, and determination as entrepreneurial measures. Employing a structured questionnaire, data was collected from 411 SME managers through random sampling. Via SPSS, descriptive and inferential statistics were applied in analysing the data. Correlation and regression analyses were performed to determine the nature and extent of the relationship between the independent and dependent variables. The correlation analysis showed that all the metrics influenced SMEs’ success positively though determination had no significant correlation (p > 0.05). The regression analysis showed innovativeness as the sole factor with the strength to influence SMEs’ success to about 13.9% (p-value = 0.001) at (R² = 0.059, Prob>F = 0.000). SMEs should therefore focus more on research and development projects to succeed.