Abstract:
Small and medium-sized enterprises (SMEs) play a crucial role in the economic and social
development in Sri Lanka and a lack of entrepreneurial competencies among SME entrepreneurs
is one of the factors hindering SME performance in the Sri Lankan context. Hence, this research
aimed to identify the entrepreneurial competencies that impact agribusiness SMEs' performance
in the Ja-Ela Divisional Secretariat Division and to provide suggestions to develop these
competencies to upgrade agribusiness SMEs in Sri Lanka. A field survey with a pre-tested
structured questionnaire was conducted on a randomly selected sample of forty agribusiness
SMEs from eight GN divisions in the Ja-Ela DS Division to collect primary data. In this research,
strategic competency, organizing competency, opportunity competency, commitment
competency, learning competency and relationship competency were measured as
entrepreneurial competencies. SME performance was measured using percentage growth in
revenue, market share, and adaptation to innovation. Data were analysed using descriptive and
inferential statistical methods. The Wilcoxon signed-rank test (one sample) was used to identify
significant challenges faced by SMEs, and the Spearman correlation coefficient was used to
analyse the relationship between entrepreneurial competencies and demographic
characteristics. Results revealed that agribusiness SMEs have a normal level of opportunity
competency (µ=3.3), strategic competency (µ=3.2), conceptual competency (µ=3.4), commitment
competency (µ=3.3) and organizing competency (µ=3.3) while only their relationship
competency (µ=4.0) was high. Correlation analysis revealed that the education level of
entrepreneurs impacts on opportunity (ρ=0.382, p<0.05), strategic (ρ=0.338, p<0.05) and
organizing (ρ=0.405, p<0.05) competencies. Furthermore, entrepreneurs’ strategic (ρ=0.806,
p<0.05), opportunity (ρ=0.733, p<0.05), relationship (ρ=0.863, p<0.05), conceptual (ρ=0.537,
p<0.05) organizing (ρ=.850, p<0.05) and commitment (ρ=.635, p<0.05) competencies have a
direct positive relationship with performance of agribusiness SMEs. This study concludes that
entrepreneurial competencies affect SME performance. However, SME owners’ entrepreneurial
competencies are at a low level, and it is necessary to enhance these competencies through
programs such as trainings, workshops, exhibitions and associations.
