managerial skills and success of small-scale entrepreneurs in kampala uganda

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DISSERTATION PRESENTATION OF CHAPTER ONE TO FOUR BY KIBUUKA MUHAMMAD Ph.D. Business Management

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Page 1: Managerial skills and success of Small-scale entrepreneurs in Kampala Uganda

DISSERTATIONPRESENTATION OF

CHAPTER ONE TO FOURBY

KIBUUKA MUHAMMAD

Ph.D. Business Management

Page 2: Managerial skills and success of Small-scale entrepreneurs in Kampala Uganda

MANAGERIAL SKILLS AND MANAGERIAL SKILLS AND

SUCCESS OF SMALL-SCALE SUCCESS OF SMALL-SCALE

ENTREPRENEURS ENTREPRENEURS

IN KAMPALA,IN KAMPALA,

UGANDAUGANDA

Page 3: Managerial skills and success of Small-scale entrepreneurs in Kampala Uganda

CHAPTER ONECHAPTER ONEINTRODUCTIONINTRODUCTION

Development & creation of wealth of a nation Development & creation of wealth of a nation depends on competitiveness of its firms.depends on competitiveness of its firms.

The competitiveness of firms depends vitally on The competitiveness of firms depends vitally on capabilities, efficiency & competency of its capabilities, efficiency & competency of its entrepreneurs & managers (Alvaro, entrepreneurs & managers (Alvaro, et alet al, 2007)., 2007).

Since in most small enterprises, the entrepreneur on Since in most small enterprises, the entrepreneur on performs key managerial functions performs key managerial functions ((Freiling, 2007Freiling, 2007) ) his/her managerial competencies play a great role in his/her managerial competencies play a great role in success and that is the major attention of this study.

Page 4: Managerial skills and success of Small-scale entrepreneurs in Kampala Uganda

CHAPTER ONE CONT…CHAPTER ONE CONT… Entrepreneurship management field has changed

from initiation and taking of risks (Schumpeter, 1932), to venture management competitiveness (Hitt et al, 2001)

The domain of Small-scale entrepreneurs and their performance, has attracted attention of many researchers globally (Basil, 2005).

Since SSEs are believed to contribute enormously to development and poverty alleviation (Jeya, 2009), various plans, policies and researches have always focused at their success factors (Jeya, 2009).

Page 5: Managerial skills and success of Small-scale entrepreneurs in Kampala Uganda

CHAPTER ONE CONT…CHAPTER ONE CONT… While small businesses dominate in both developed While small businesses dominate in both developed

and developing nations (they contribute over 60% of and developing nations (they contribute over 60% of all companies in Malaysia, Philipines, Brazil and all companies in Malaysia, Philipines, Brazil and India; 90% jobs in U.S; 80% in Japan & 50% in India; 90% jobs in U.S; 80% in Japan & 50% in Germany), In developing countries and Uganda in Germany), In developing countries and Uganda in particular, their GDP contribution is less than50%, particular, their GDP contribution is less than50%, (Soni, 2005; Ruffing, 2004). (Soni, 2005; Ruffing, 2004).

Page 6: Managerial skills and success of Small-scale entrepreneurs in Kampala Uganda

CHAPTER ONE CONT…CHAPTER ONE CONT… While the role of small-scale entrepreneurs has been While the role of small-scale entrepreneurs has been

remarkably recognised globally, in African context their remarkably recognised globally, in African context their contribution is still small, a possible reason why they are contribution is still small, a possible reason why they are still poor.still poor.

Where as SSE challenges are many, their biggest Where as SSE challenges are many, their biggest impediment to growth which is almost uniform globally is impediment to growth which is almost uniform globally is management skills (others are competition, unfavourable management skills (others are competition, unfavourable regulations, financial hurdles, political instabilities, regulations, financial hurdles, political instabilities, inadequate market knowledge, poor technology, managing inadequate market knowledge, poor technology, managing growth, taxation and customer service, pricing, complicated growth, taxation and customer service, pricing, complicated labour laws, infrastructural and bureaucratic procedures) labour laws, infrastructural and bureaucratic procedures) (Soni, 2005) .(Soni, 2005) .

This study’s specific interest was on mgt skills as key This study’s specific interest was on mgt skills as key inadequacy hindering growth & survival of SSE in Kampalainadequacy hindering growth & survival of SSE in Kampala

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CHAPTER ONE CONT…CHAPTER ONE CONT… Uganda’s competiveness globally and regionally has been Uganda’s competiveness globally and regionally has been

reported to be low (Ministry of Finance, Planning and Economic reported to be low (Ministry of Finance, Planning and Economic Development, 2008) & its attributed partly to unsatisfactory Development, 2008) & its attributed partly to unsatisfactory performance of the private sector, in which most SSEs fall. That performance of the private sector, in which most SSEs fall. That is why GoU put up the Competitiveness and Investment Climate is why GoU put up the Competitiveness and Investment Climate Strategy (2006-2010).Strategy (2006-2010).

Before 1844, commercial businesses were mainly in Buganda Before 1844, commercial businesses were mainly in Buganda where chiefs conducted business on behalf of the King; after where chiefs conducted business on behalf of the King; after 1844, Arabs dominated businesses. After World War II, 1844, Arabs dominated businesses. After World War II, Ugandans demanded economic independence (Ojok, 2000) and Ugandans demanded economic independence (Ojok, 2000) and freedom to gin and export their own cotton. After Independence freedom to gin and export their own cotton. After Independence (1962), a few Ugandans in Kampala started SSE for profit (1962), a few Ugandans in Kampala started SSE for profit (Musiime, 2007), leaving medium and large-scale enterprises to (Musiime, 2007), leaving medium and large-scale enterprises to Asians, possibly because they lacked skills to manage large Asians, possibly because they lacked skills to manage large ventures. ventures.

Page 8: Managerial skills and success of Small-scale entrepreneurs in Kampala Uganda

CHAPTER ONE CONT…CHAPTER ONE CONT… Ugandan lacked skills in business know-how, Ugandan lacked skills in business know-how,

bookkeeping, and raising capital, which limited their bookkeeping, and raising capital, which limited their success (Musiime, 2007). This became more vivid in success (Musiime, 2007). This became more vivid in 1972, when Asians were expelled, local entrepreneurs 1972, when Asians were expelled, local entrepreneurs hardly survived for a year & Uganda was dragged into hardly survived for a year & Uganda was dragged into economic crisis (Musiime, 2007).economic crisis (Musiime, 2007).

Of all studies conducted on determinants of SSE Of all studies conducted on determinants of SSE success in Uganda (e.g. success in Uganda (e.g. Ishengoma & Kappel 2008; Ishengoma & Kappel 2008; Tushabomwe-Kazooba 2006; Lois & Annette, 2005; Tushabomwe-Kazooba 2006; Lois & Annette, 2005; Mayanja, 2001; Kiwanuka 1998; Kyeyune, 1996; Mayanja, 2001; Kiwanuka 1998; Kyeyune, 1996; Lubowa,1996), none of them related it to the three types Lubowa,1996), none of them related it to the three types of managerial skills, namely 1) conceptual; 2) human; of managerial skills, namely 1) conceptual; 2) human; and 3) technical skills, a gap this study intended to fill.and 3) technical skills, a gap this study intended to fill.

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Theoretical Theoretical Several theories explain rise, growth, success & failure of small businesses (e.g. Several theories explain rise, growth, success & failure of small businesses (e.g. environmental theory, (Hannan & Freeman, 1977) individual theory (Levander environmental theory, (Hannan & Freeman, 1977) individual theory (Levander & Raccula, 2001& Raccula, 2001)), the Five stages model (Churchill & Lewis, 1983)…, the Five stages model (Churchill & Lewis, 1983)…

Arriving at a generally acceptable theory of small businesses has been a Arriving at a generally acceptable theory of small businesses has been a problem (Churchill & Lewis, 1983; d’Amboise, 1988). problem (Churchill & Lewis, 1983; d’Amboise, 1988).

Many theorists focused on a few dimensions like business size, survival, risk Many theorists focused on a few dimensions like business size, survival, risk taking, innovation and other entrepreneur characteristics (Churchill & Lewis, taking, innovation and other entrepreneur characteristics (Churchill & Lewis, 1983; d’Amboise, 1988). 1983; d’Amboise, 1988).

Many have talked about managerial characteristics of owner, but have not Many have talked about managerial characteristics of owner, but have not attempted to specified managerial skills the owner should possess in order to attempted to specified managerial skills the owner should possess in order to succeed. succeed.

The word entrepreneur, manager and owner have been used interchangeably The word entrepreneur, manager and owner have been used interchangeably Churchill & Lewis (1983) and d’Amboise (1988).Churchill & Lewis (1983) and d’Amboise (1988).

Many times the entrepreneur is the manager and owner, hence words like Many times the entrepreneur is the manager and owner, hence words like owner-manager, entrepreneur-manager have risen.owner-manager, entrepreneur-manager have risen.

This study dwelled on the Five Stages models (Churchill & Lewis, 1983). This study dwelled on the Five Stages models (Churchill & Lewis, 1983). IIt is t is more elaborate in explaining the rise, growth and failure of small businesses. In more elaborate in explaining the rise, growth and failure of small businesses. In Uganda, no study on this model was found.Uganda, no study on this model was found.

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Theoretical Cont…Theoretical Cont… The five stages model (FSM) explains the long run growth path The five stages model (FSM) explains the long run growth path

of small businesses. Although has a wide application, it did not of small businesses. Although has a wide application, it did not mention the key management factors that can bring success at mention the key management factors that can bring success at different stages of a small business growth. different stages of a small business growth.

This study wanted to go beyond by examining the extent to This study wanted to go beyond by examining the extent to which specific management characteristics can influence success which specific management characteristics can influence success or failure of initiated ventures (Plaschka & Welsch, 1990)or failure of initiated ventures (Plaschka & Welsch, 1990). .

The study proposed that to be successful in his/her innovation The study proposed that to be successful in his/her innovation and risk taking, entrepreneur (small business owner) requires and risk taking, entrepreneur (small business owner) requires competence in several managerial abilities. As further supported competence in several managerial abilities. As further supported by by Mintzberg (in studymode.com, 2010), after initiation stage, Mintzberg (in studymode.com, 2010), after initiation stage, managerial competences boost manager’s ability to respond managerial competences boost manager’s ability to respond towards environmental changes. towards environmental changes.

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Theoretical Cont…Theoretical Cont… The five stages, explains the factors through which the The five stages, explains the factors through which the

business grows along the stages of the growth path. business grows along the stages of the growth path. It indicates that managerial roles and requirements of a It indicates that managerial roles and requirements of a

small business change as the business grows from one stage small business change as the business grows from one stage to another. to another.

Most noticeable is that most managerial roles of a small Most noticeable is that most managerial roles of a small business rest on the owner in the first, second and third business rest on the owner in the first, second and third stages. But in later stages, the founder’s direct management stages. But in later stages, the founder’s direct management is disengaged. is disengaged.

This study’s theoretical examination is on the first three This study’s theoretical examination is on the first three stages, where the entrepreneur or owner-manager performs stages, where the entrepreneur or owner-manager performs most of the managerial functions. This model is depicted most of the managerial functions. This model is depicted belowbelow

Page 12: Managerial skills and success of Small-scale entrepreneurs in Kampala Uganda

Theoretical ModelTheoretical Model

Fig. 1: Theoretical Model; The Five Stages Model of Small Business Growth

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Existence Survival Success Take off Resource maturity

Age of Firm Young Mature

Size, dispersion complexity

Large

Small

Disengage Grow

Adapted from Growth stages of Churchill & Lewis (1983)

Page 13: Managerial skills and success of Small-scale entrepreneurs in Kampala Uganda

Explanation of the theoretical model Explanation of the theoretical model Explanation of the theoretical model Explanation of the theoretical model In existence stage, major concerns are production, In existence stage, major concerns are production,

obtaining customers, marketing and resources. obtaining customers, marketing and resources. The owner performs almost all works and directly The owner performs almost all works and directly

supervises all business activities. The owner-manager supervises all business activities. The owner-manager must have an average level of competence to perform must have an average level of competence to perform these tasks (Churchill & Lewis, 1983). The model does these tasks (Churchill & Lewis, 1983). The model does not mention key managerial skills required for not mention key managerial skills required for entrepreneur to answer these questions.entrepreneur to answer these questions.

We proposed that managerial skills like conceptual, We proposed that managerial skills like conceptual, human and technical can enhance their ability to deal human and technical can enhance their ability to deal with these concerns. with these concerns.

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Explanation of the model cont…Explanation of the model cont… In the survival stage, major concerns are In the survival stage, major concerns are

relationship between revenue and expenditure, relationship between revenue and expenditure, customer satisfaction, expansion and profitability.customer satisfaction, expansion and profitability.

The business still has a few employees.The business still has a few employees. Owner-manager is still key in all daily operations. Owner-manager is still key in all daily operations. Owner-manager requires managerial competences to Owner-manager requires managerial competences to

move to another level. move to another level. This model does not explain the factors that affect This model does not explain the factors that affect

customer satisfaction, expansion and profitability. customer satisfaction, expansion and profitability.

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Explanation of the model cont…Explanation of the model cont… In success stage, major concerns are business size, In success stage, major concerns are business size,

expansion, profitability, opening up branches & owner’s expansion, profitability, opening up branches & owner’s satisfaction. satisfaction.

Owner-manager still key in all daily operations. Owner-manager still key in all daily operations. But there is a question of whether the owner should enjoy But there is a question of whether the owner should enjoy

them the profits or re-invest or open branches. them the profits or re-invest or open branches. The owner-manager still requires managerial competences The owner-manager still requires managerial competences

to enable him/her select suitable functional managers to take to enable him/her select suitable functional managers to take over certain duties and to delegate efficiently. over certain duties and to delegate efficiently.

We examined whether delegation skills can speed up We examined whether delegation skills can speed up business success. Other basic skills required here are business success. Other basic skills required here are financial, marketing, production, planning, monitoring, financial, marketing, production, planning, monitoring, adaptation to environmental changes and relationships. adaptation to environmental changes and relationships.

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Explanation of the model cont…Explanation of the model cont… Once in success stage, major challenges of growth are over Once in success stage, major challenges of growth are over

come. come. The business has enough money to employ professionals The business has enough money to employ professionals

and experts, expand its production and put in place proper and experts, expand its production and put in place proper structures and systems. This study’s major problem was on structures and systems. This study’s major problem was on owner-manager’s ability to move to the success stage. owner-manager’s ability to move to the success stage.

Finally, the model implies that managerial skills (though not Finally, the model implies that managerial skills (though not explicitly specified) are more important and required when explicitly specified) are more important and required when the business is still young. We agreed with that notion and the business is still young. We agreed with that notion and tested whether specific managerial skills (conceptual, tested whether specific managerial skills (conceptual, human and technical) can enhance success.human and technical) can enhance success.

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CONCEPTUAL PERSPECTIVECONCEPTUAL PERSPECTIVE Managerial skills (independent variable), conceptualised as the Managerial skills (independent variable), conceptualised as the

ability of a manager (in this case a small-scale entrepreneur or a ability of a manager (in this case a small-scale entrepreneur or a small business owner) to perform managerial tasks or roles small business owner) to perform managerial tasks or roles effectively and efficiently (Zuzana & Matej, 2007). Three types effectively and efficiently (Zuzana & Matej, 2007). Three types of managerial skills were examined (conceptual, human and of managerial skills were examined (conceptual, human and technical) against success of SSEs (dependent variable), technical) against success of SSEs (dependent variable), conceptualised as internal or personal success (measured by conceptualised as internal or personal success (measured by personal expectations/benefits like profits, sales, personal personal expectations/benefits like profits, sales, personal satisfaction, expansion, and improved life) and external success satisfaction, expansion, and improved life) and external success (measured by increased jobs, output, improved quality, relations (measured by increased jobs, output, improved quality, relations and trained people); long term survival was taken to be both. and trained people); long term survival was taken to be both. While many studies have been done on success or failure of While many studies have been done on success or failure of SSEs, in Uganda, no study examined managerial skills and SSEs, in Uganda, no study examined managerial skills and specifically in terms of Conceptual, Human and Technical, specifically in terms of Conceptual, Human and Technical, hence the need to cover these conceptual & contextual gaps.hence the need to cover these conceptual & contextual gaps.

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CONCEPTUAL MODELCONCEPTUAL MODEL

HUMAN SKILLS

Social skills (+) Leading skills (+) Motivation skills (×) Conflict resolution skills (+) Communication skills (+)

CONCEPTUAL SKILLS

Planning skills - Business plan development (+) - Goal setting (+) - Resource mobilization (+)

Organizing skills - Task identification (+) - Team building (+) - Departmentalization (+) - Delegation (+)

TECHNICAL SKILLS

Professional skills (+) Marketing skills (+) Budgeting skills (+) Time management skills (+) Legal skills (+) Bookkeeping skills (+)

INTERNAL/ PERSONAL

Increased profits Increased sales Expansion Improved life Long-term survival

EXTERNAL

Increased Job creation Increased output Improved relations Improved quality Increased trained

people Increased assets Long-term survival

MANAGERIAL SKILLS SUCCESS OF SSEs

Page 19: Managerial skills and success of Small-scale entrepreneurs in Kampala Uganda

Contextual perspectiveContextual perspective This study was conducted in Kampala District, the abode of most This study was conducted in Kampala District, the abode of most

SSEs. Most small business owners in Kampala acquire skills SSEs. Most small business owners in Kampala acquire skills informally through self learning and apprenticeships, limited to informally through self learning and apprenticeships, limited to production; so they lack skills to manage ventures (Lois & Annette, production; so they lack skills to manage ventures (Lois & Annette, 2005). Competition in Kampala is stiff, operational costs are high and 2005). Competition in Kampala is stiff, operational costs are high and peoples’ demands are high. All these require competent management. peoples’ demands are high. All these require competent management.

Mortality rate of new SSE in Uganda is very high (Lois & Annette, Mortality rate of new SSE in Uganda is very high (Lois & Annette, 2005). This incits a question why!2005). This incits a question why!

In his key note address to the In his key note address to the Symposium on Modalities for Financing Symposium on Modalities for Financing SMEs, Ssendaula (2003) pointed out that financial institutions cannot SMEs, Ssendaula (2003) pointed out that financial institutions cannot lend these enterprises due to; poor records and accounts management, lend these enterprises due to; poor records and accounts management, low level of technical and management skills, outdated technologies, low level of technical and management skills, outdated technologies, unacceptable rates of return, lack of professionalism & networking unacceptable rates of return, lack of professionalism & networking skills, poor quality products & ltd knowledge of business skills, poor quality products & ltd knowledge of business opportunities. Most of these are managerial. opportunities. Most of these are managerial.

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Statement of the ProblemStatement of the Problem Most SSEs in Uganda die in first two years, majority Most SSEs in Uganda die in first two years, majority

employ <10 workers & contribute <20% to GDP employ <10 workers & contribute <20% to GDP (Ishengoma & Kappel, 2008; Lois, & (Ishengoma & Kappel, 2008; Lois, & AnnetteAnnette, 2005). This , 2005). This failure to progress/succeed is likely to discourage new failure to progress/succeed is likely to discourage new entrepreneurs, encourage job seekers and increase entrepreneurs, encourage job seekers and increase unemployment.unemployment.

While several factors account for entrepreneurial success While several factors account for entrepreneurial success or failure, (e.g. capital, environment, government support or failure, (e.g. capital, environment, government support etc.), managerial skills are very crucial (Hisrich & Peters, etc.), managerial skills are very crucial (Hisrich & Peters, 1998). According to Ssempebwa (1992) in MOFPED 1998). According to Ssempebwa (1992) in MOFPED (2008), 78% of the SSEs in Kampala are constrained by (2008), 78% of the SSEs in Kampala are constrained by inadequate skills, including managerial skills.inadequate skills, including managerial skills.

Thus for entrepreneurs to succeed in their entrepreneurial Thus for entrepreneurs to succeed in their entrepreneurial ventures, they must ensure proper management of their ventures, they must ensure proper management of their ventures, which calls for possession and application of ventures, which calls for possession and application of several managerial skills such as Conceptual, Human and several managerial skills such as Conceptual, Human and Technical (George & Johns, 2001)Technical (George & Johns, 2001).. Therefore tTherefore this study his study wanted to examine whether this high rate of SSE failure is wanted to examine whether this high rate of SSE failure is due to inadequate managerial skills or not. due to inadequate managerial skills or not.

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PURPOSE OF THE STUDY

To establish the relationship between the various dimensions of Managerial skills and success of SSE in Kampala, and prove or disprove the theoretical assertions/ hypothetical/ contentions.

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Research ObjectivesResearch Objectives1.1. To investigate the extent to which managerial To investigate the extent to which managerial

skills were possessed by the SSEs in Kampala.skills were possessed by the SSEs in Kampala. 2.2. To establish the extent to which SSEs in To establish the extent to which SSEs in

Kampala are successful in their business Kampala are successful in their business ventures.ventures.

3.3. To establish whether the extent of managerial To establish whether the extent of managerial skills possessed and success differ among SSEs skills possessed and success differ among SSEs in Kampala based on their individual in Kampala based on their individual characteristics.characteristics.

4.4. To establish whether managerial skills of SSEs To establish whether managerial skills of SSEs in Kampala are related or can explain their in Kampala are related or can explain their business success.business success.

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HypothesesHypotheses1.1. The extent of managerial skills possessed and The extent of managerial skills possessed and

success does not significantly differ among success does not significantly differ among SSEs in Kampala based on their individual SSEs in Kampala based on their individual characteristics.characteristics.

2.2. Managerial skills of SSEs in Kampala are not Managerial skills of SSEs in Kampala are not significantly related to their business success.significantly related to their business success.

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METHODOLOGYMETHODOLOGYDesignDesign Descriptive survey design; for objectives one and two Descriptive survey design; for objectives one and two

Ex-post facto; the researcher requested business owners to give facts that had already taken place and were existing (Cooper & Schindler, 2008). Descriptive comparativeDescriptive comparative; ; to compare the extent to compare the extent of managerial skills possessed by the SSEs and the of managerial skills possessed by the SSEs and the extent to which they are successful based on their extent to which they are successful based on their individual characteristics.individual characteristics. Descriptive co-relational; Descriptive co-relational; to establish whether to establish whether managerial skills of SSEs in Kampala are managerial skills of SSEs in Kampala are significantly co-related to their business successsignificantly co-related to their business success.. Cross-sectional survey; to collect data from a sample of Kampala SSEs at one point in time, intending to draw generalizations on all SMEs there in.

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METHODOLOGY CONT…METHODOLOGY CONT… PopulationPopulation

Target; Target;

All the Small-scale Entrepreneurs or the owners of All the Small-scale Entrepreneurs or the owners of Small-scale Enterprises (SSEs) in Kampala district Small-scale Enterprises (SSEs) in Kampala district Uganda.Uganda.

There are over 11003 SSE (MoFPED 2008) in Kampala, over 11003 SSE (MoFPED 2008) in Kampala, taking more than 40% of national total. taking more than 40% of national total.

Sample SizeSample Size Given a big population of 11003 SSE in Given a big population of 11003 SSE in Kampala, there was a need for sampling to Kampala, there was a need for sampling to minimize time and costs. Slovene’s formula minimize time and costs. Slovene’s formula (due to its consistency) was used to come (due to its consistency) was used to come up with a sample of up with a sample of 386 SSEs

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Sampling ProceduresSampling Procedures Purposive sampling Purposive sampling to; inclusion and to; inclusion and

exclusion criteria setexclusion criteria setStratified according toStratified according to Divisions into five Divisions into five

DivisionsDivisionsData on the number of SSEs in each Division was not available. Data on the number of SSEs in each Division was not available. Proportionate or quota Proportionate or quota sampling was applied to select 77 sampling was applied to select 77

firms from each Divisionfirms from each Division.. ConvenientConvenient sampling was employed to finally select sampling was employed to finally select

respondents.respondents. The researcher did not access any list of The researcher did not access any list of SSEs in Kampala and the nature of their distribution SSEs in Kampala and the nature of their distribution could not warrant use random sampling techniques. could not warrant use random sampling techniques.

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Research InstrumentsResearch InstrumentsNon standardized questionnaires (Non standardized questionnaires (The The

researcher did not access any standardised researcher did not access any standardised instrument for measuring study constructsinstrument for measuring study constructs ))

1. Face sheet (factual questions used)1. Face sheet (factual questions used) 2. Managerial skills2. Managerial skills 3. Entrepreneurial success3. Entrepreneurial successAll questions for 2 & 3 were closed-ended and All questions for 2 & 3 were closed-ended and

based on five point Likert Scales, ranging from based on five point Likert Scales, ranging from one to five, where 1=Very little or no skill at all; one to five, where 1=Very little or no skill at all; 2=Little skills; 3 = moderate skills; 4 = Much 2=Little skills; 3 = moderate skills; 4 = Much skills; and 5=Very much skills. skills; and 5=Very much skills. The two variables were measured using opinions of SSEs, hence the application of Likert based questions (Likert, 1932).(Likert, 1932).

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DATA GATHERING PROCEDURES

BEFORE ADMIN. OF QUESTIONNAIRES 1. Introduction letter from SPGSR 2. Validity and reliability tests 3. Briefing of research assistants 4. Sampling and distribution of questionnaires

DURING THE ADMIN. OF QUESTIONNAIRES 1. Briefing of respondents 2. Retrieval of questionnaires

AFTER THE ADMIN.OF QUESTIONNAIRESEntered, edited, diagnostic tests and organization of data through SPSSAnalysed and then interpreted results

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Data AnalysisData AnalysisDescriptive Data AnalysisDescriptive Data Analysis1. Frequency and percentage distributions, for demographic 1. Frequency and percentage distributions, for demographic

characteristics of respondentscharacteristics of respondents2. Means for describing extent to which SSEs possessed the three types 2. Means for describing extent to which SSEs possessed the three types

of managerial skills as well as the extent to which they were of managerial skills as well as the extent to which they were successful (internally and externally)successful (internally and externally)

*Item analysis illustrated the strengths and weaknesses of SSEs on *Item analysis illustrated the strengths and weaknesses of SSEs on the two variables of the study. This catered for objectives one and the two variables of the study. This catered for objectives one and two. two.

Comparative Data AnalysisComparative Data Analysis3. The student’s two independent samples t-test and OneWay ANOVA 3. The student’s two independent samples t-test and OneWay ANOVA

for differences in managerial skills possessed and extent of success. for differences in managerial skills possessed and extent of success. This catered for objective three. This catered for objective three.

Correlative Data AnalysisCorrelative Data Analysis4. Pearson linear correlation coefficient to establish whether managerial 4. Pearson linear correlation coefficient to establish whether managerial

skills possessed are co-related with successskills possessed are co-related with success5. Regression analysis, to establish whether the managerial skills 5. Regression analysis, to establish whether the managerial skills

possessed can predict the extent to which the SSEs were successful. possessed can predict the extent to which the SSEs were successful. Tools in 4 &5 were used to achieve objective four. Tools in 4 &5 were used to achieve objective four.

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ETHICAL CONSIDERATIONS

1. PERMISSION TO CONDUCT THE STUDY

2. CODING OF QUESTIONNAIRES

3. RESPONDENTS TO SIGN THE INFORMED

CONSENT

4. CITATIONS AND REFERENCING

5.FINDINGS SHALL BE PRESENTED IN

GENERALIZED MANNER

Page 31: Managerial skills and success of Small-scale entrepreneurs in Kampala Uganda

LIMITATIONS

1. CONFOUNDING VARIABLES

2. UNCONTROLLED SETTINGS

3. TESTING

4. INSTRUMENTATION

5. ATTRITION

Page 32: Managerial skills and success of Small-scale entrepreneurs in Kampala Uganda

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