Distinctive competencies of SMEs’ entrepreneurs: an advanced study

In this paper we analyze the role of the individual competencies of a sample of entrepreneurs of small and medium sized Italian firms and their impact on business performance. First we focus on the measurement of entrepreneurial competencies by using a variety of tools and then we try to find a relationship with firm performance considering a multi-dimensional performance indicator and some control variables. Results show that the entrepreneurial competency portfolio has an impact on the organizational performance. In particular, competencies like Efficiency orientation, Planning, Persuasiveness, Self-confidence, Organizational awareness, Directing others, Teamwork, Leadership and Benchmarking are related to a higher firm performance. Factor analysis also shows some typical behavioral paths related to entrepreneurial effectiveness and regression analysis shows the influence of some control variables. According to our results, it is of utmost importance for entrepreneurs to develop some specific competencies in order to obtain a higher performance.