EFFECT OF ENTREPRENEURIAL MINDSET AND ENTREPRENEURIAL COMPETENCE ON PERFORMANCE OF SMALL AND MEDIUM ENTERPRISE, EVIDENCE FROM LITRATURE REVIEW

Abstract

This study was undertaken to review the literature of the impact of entrepreneurial mindset and entrepreneurial competence on performance of small and medium enterprises (SMEs). The review employed systematic review and was able to identify several components that contribute for enhancing the firms’ performance. Most significant entrepreneurial competence components positively and significantly affecting the performance include: opportunity and innovation competence, relational, conceptual, commitment, strategic, organizing, capability of managing resources. Entrepreneurial mindset affects positively and significantly the performance of SMEs and parameters includes: seeking opportunity, creativity, innovation, risk taking, pro-activeness, and alertness to take action. The new development is the established relationship between entrepreneurial mindset and entrepreneurial competence that contribute to business success based on this the review developed conceptual modelThe implication includes in order enhancing the performance, entrepreneurs’ in SMEs with entrepreneurial mindset, they should acquire knowledge and skill through education and participating in entrepreneurship program offered by government and non-government organization. The government should give priority for people engaged in running the entrepreneurial venture and should strive to offer the entrepreneurial essential skills that enable the individual/people to become an entrepreneur/s as a result helps to enhance their performance of firms.Keywords: Small and Medium Enterprises; Entrepreneurial Competence; Entrepreneurial Mindset, SMEs Performance, Impact