a guide for the measurement of entrepreneurial skills

Abstract

This manuscript provides a composite index for measuring entrepreneurial skills in emerging business enterprises operating in South African townships in Gauteng Province, South Africa. The index is a result of data gathered from 432 emerging enterprises in Gauteng Province.The index is based on a matrix of indicators used by Worku (2018) for quantifying basic competence in entrepreneurship in the textile industry of Tshwane, South Africa. Skills in entrepreneurship were measured by using 5 dimensions. These were 3 items for the measurement of creativity, 12 items for taking reasonable risk, 15 items for ability in utilising business opportunities, 18 items for business leadership, 11 items for utilising assistance programmes that are made available to business enterprises. Seventy percent of entrepreneurs in the research possessed adequate entrepreneurial skills, whereas 30% did not. Regression analysis based on structural equations modelling identified 3 influential predictors of entrepreneurial skills (actual ownership of business enterprise, lengthy business operation period, and capability to use business intelligence methods for business decision making and the collection of market assessment).