The Role of Entrepreneurial and Business Skills on the Performance of Ethiopian SMEs Engaged in Urban Horticulture Production

Abstract

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The study examined the effect of entrepreneurial and managerial competencies on the growth and sustainability of small Urban Agriculture (UA) businesses in Ethiopia. It also tested whether the political environment moderates the relationship. The research followed a mixed research design where quantitative data was adopted to test hypothesised relationships and describe respondents’ perceptions of entrepreneurial and managerial competencies; and quantitative results were elaborated using qualitative data obtained from interviews and documents. Data were collected from a purposively selected sample of 300 respondents, and 250 useable responses were analysed using the Smart PLS4 algorithm. In addition, a content analysis technique was applied to analyse data from interviewees. Analysis results indicate that skills related to financial management, marketing, networking, opportunity seeking, and environmental consciousness have a significant positive effect on the growth and sustainability of UAs; and the political environment did not moderate the relationship. This implies that entrepreneurs in the UA sector and stakeholders should work on enhancing the managerial skills of UA participants towards attaining sustainability and growth objectives.

Keywords: Managerial Skills, Entrepreneurial Competency, Urban Agriculture, Marketing, Finance, Political Environment

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