Abstract:
The entrepreneurs must act proactively with the environment in order to diminish the negative
consequence of the challenging business environment. Entrepreneurial competencies are
becoming more important to take such a proactive move towards the environment. Hence, this
study's aims were; to examine the relationship between owner’s background characteristics and
entrepreneurial competencies and to analyze the impact of entrepreneurial competencies on
performance. Primary data were collected from randomly selected 45 mushroom producers
(owners) in the Kamburupitiya DS Division through a field survey using a pretested structured
questionnaire. Entrepreneurial competencies were operationalized as an opportunity,
organizing, strategic, relationship, commitment and conceptual competencies. Data were
analyzed using descriptive statistics, Pearson correlation and regression analysis. Results
revealed that, 71.7% of the owners were studied up to G.C.E. Ordinary Level. Further, 32.6% of
owners have participated in training sessions before starting their business whereas 67.4% of
owners have such training after starting up their mushroom businesses. Regression analysis
revealed that there is a significant positive relationship between educational level and the
opportunity competency level of respondents (β=.642, p<0.1). Results of the correlation analysis
shown that opportunity (r= 0.71, p<0.01), relationship (r=0.37, p<0.05), conceptual (r=0.46,
p<0.01), organizing (r=0.31, p<0.05) and strategic competencies (r=0.76, p<0.01) were
positively and significantly effect on the business performance. Further, regression analysis
implied that owners' strategic and opportunity competencies have a direct positive relationship
with mushroom production's business performance in the Kamburupitiya DS Division.
Accordingly, this study concluded that the strategic and opportunity competency levels of
entrepreneurs are important to enhance the performance of mushroom production like cottage
industries.
