EFFECT OF MANAGERIAL AND FINANCIAL SKILLS ON PERFORMANCE OF SELECTED MSMEs IN KADUNA STATE

This study examined the effect of managerial and financial skills on the performance of selected micro, small, and medium enterprises (MSMEs) in Kaduna State. Although the various tiers of government have made frantic efforts to create an enabling environment for MSMEs in Nigeria to thrive, they are still characterized by a high rate of mortality and poor performance in terms of job creation, poverty eradication, and general contribution to the gross domestic product (GDP). The study adopted a descriptive survey design and collected primary data through a structured questionnaire administered to 230 owners/managers of MSMEs across the three Metropolitan Authorities of Kaduna State, Nigeria. This sample size was obtained from the population of 543, using the Yamane (1967) sample formula. The regression analysis was done using partial least squares - structural equation modeling (PLS-SEM) with Smart-PLS version 3 as the statistical tool. Whereas the findings show that managerial skills have a positive and significant effect on the performance of MSMEs in Kaduna State, Nigeria, financial skills were found to have no significant effect on the performance of MSMEs in the State. Consequently, it was recommended that the Kaduna State government should collaborate with the necessary agencies to encourage owners/managers to acquire managerial skills in areas of planning, organizing, leading, and controlling, and apply them as they run their businesses to improve performance.