The Influence of Experience and Owner-Managers Education on SME Performance: Case of Motor Spares Enterprises at Kelvin Light Industries in Bulawayo

Abstract

The continued failure of small to medium enterprises and lack of growth of those that survive, continue to pose some challenges to the Zimbabwean economy. Lack of experience and education by ownermanagers of SMEs, is one of the major challenges impeding their survival and growth. The study sought to establish the influence of experience and owner-managers education on SME performance specifically focusing on motor spares SMEs at Kelvin Light Industries in Bulawayo. The objective of this study, therefore, was to analyse the relationship between experience and owner-managers education and the performance of SMEs. The descriptive research design was employed in this study. The researcher adopted stratified sampling technique supported by simple random technique to select participants from the population. Closed-ended questionnaires were used to collect data from owner-managers operating at Kelvin Light Industries. SPSS version 20 was used to analyse and present the data. The results of the study showed that there was a strong relationship between both education and experience of owner-managers on SME performance. The researcher recommends that owner-managers should continuously receive training on how to run and manage their SMEs. Owner-managers should employ human capital on merit which would give them a competitive advantage in business.

Leveraging Small Business Development Through Employment Contracts: The Mediation Effect of Job Insecurity

“…It measures the firm's ability to expand as a result of meeting its set targets, objectives, and goals. However, despite their enormous contribution to different economies, the same cannot be said about these small business enterprises in the context of developing countries such as Zimbabwe (Ndlovu, Shumba & Vakira, 2018). For instance, a number of them are failing to survive and those who survive are still failing to develop into either medium or big corporate entities.…”

“…For instance, a number of them are failing to survive and those who survive are still failing to develop into either medium or big corporate entities. In the same vein, statistics indicate that about 15 out of 100 small business entities hardly survive beyond five years, with a few graduating to either medium or big entities (Ndlovu, Shumba & Vakira, 2018). Prior literature suggests that these small business entities are bedevilled by a myriad of challenges associated with the entrepreneur's lack of capacity, particularly financial, lack of know-how, high rate of employee turnover, failure the craft strategic plans, lack of zeal and strength to both forms and nurture a successful business in the long run (Gukurume, 2018).…”

“…Similarly, lack of skill, education, miscalculations, and poor decisionmaking significantly contributed to the lack of development of these small businesses (Chiwara, 2015). Consenting to the view around education and skill, Ndlovu, Shumba and Vakira (2018) argue that highly skilled and educated owners embrace and promote the concept of business continuity as compared to the less educated. By the same token, a lack of adequate skills in terms of managerial competencies and strategic management has been cited as the major challenge deterring the development of these small business entities (Karedza, Sikwila, Mpofu & Makurumidze, 2014).…”

“…By the same token, a lack of adequate skills in terms of managerial competencies and strategic management has been cited as the major challenge deterring the development of these small business entities (Karedza, Sikwila, Mpofu & Makurumidze, 2014). Undoubtedly, one of the primary reasons behind the failure of SMMEs revolves around the capacity and ability of owner-managers to decisively manage their small businesses (Ndlovu, Shumba & Vakira, 2018).…”

“…This has been exacerbated by the owner managers' exploitative characteristics, who believe that employees should just be grateful for the job opportunities available to them (Ofosuhene & Sammo, 2020). Consequently, they should not expect comfort or dictate employment terms as their duties are to follow instructions and take orders from either owners or managers (Ndlovu, Shumba & Vakira, 2018).…”