THE ROLE OF SOFT SKILLS IN BOOSTING FINANCIAL METRICS FOR LEBANESE SMES

Abstract

Small and medium-sized enterprises (SMEs) are critical to Lebanon's economic structure, contributing significantly to employment and economic growth. However, one of the key challenges SMEs face is maintaining robust financial performance in an increasingly competitive and volatile business environment (Mekdessi et al., 2023). While much attention has been placed on technical skills development, the role of soft skills training in enhancing financial performance has been relatively underexplored. This research examines how soft skills, such as communication, leadership, emotional intelligence, and problem-solving, directly influence the financial metrics of Lebanese SMEs. Through a quantitative analysis of SMEs that have integrated soft skills training into their development programs, this study demonstrates that such training significantly improves financial outcomes, including profitability, operational efficiency, and customer satisfaction. These findings highlight the critical importance of a balanced skillset—one that incorporates both technical competencies and soft skills—to ensure the long-term success and competitiveness of SMEs in Lebanon. Practical recommendations are provided for SME leaders to incorporate soft skills training as part of their strategic development to drive financial growth.