Abstract

This research endeavors to empirically examine the effects of entrepreneurial competencies on the performance of Small and Medium Enterprises (SMEs) in Malaysia. Adopting a cross-sectional approach, the study collected quantitative data from 109 SMEs owner-managers, randomly chosen from the registration lists of three prominent agencies such as PUNB, MARA, and SMECorp in Peninsular Malaysia, encompassing the manufacturing, service, and construction sectors. The researchers utilized Partial Least Squares (PLS) analysis and bootstrapping methods to test the developed hypotheses. The results indicate that strategic, commitment, organizing, relationship, and conceptual competencies significantly influence SME performance, whereas opportunity competencies demonstrate no substantial impact. This study contributes to the field by identifying relevant entrepreneurial competencies and empirically assessing their influence on SMEs performance in a developing country context. The insights gained from this research are valuable for policymakers in developing and implementing effective entrepreneurship training programs.