Impact of Managerial Skills on the Performance of Small and Medium Sized Enterprises

Small and Medium-Sized Enterprises (SMEs) in Kaduna State face persistent performance challenges, largely attributed to gaps in managerial skills. Despite the critical role SMEs play in economic development, many struggle with inefficiencies due to inadequate technical expertise and weak interpersonal competencies. This study investigates the impact of technical and interpersonal managerial skills on SME performance, aiming to determine their relative significance in business success. A quantitative research design was employed, using structured questionnaires to collect primary data from 174 SME owner-managers. The study utilized descriptive statistics, correlation analysis, normality tests, and multiple regression modelling in SPSS version 25 to analyse the data. Findings reveal that both technical and interpersonal skills significantly influence SME performance, with interpersonal skills exhibiting a stronger predictive effect. Furthermore, the correlation analysis confirmed a positive relationship between both managerial skill sets and SME performance, emphasizing their complementarity in driving business success. The study concludes that a balanced integration of technical expertise and interpersonal competencies is essential for SME growth and sustainability. However, despite high ratings for technical skills, their direct impact on business outcomes remains limited without strong leadership, communication, and collaboration abilities. Therefore, it is recommended that by 2026, at least 70% of SMEs should participate in structured training programs focusing on financial management, business operations, leadership, and communication. This will equip SME owners with the necessary skills to enhance efficiency, drive innovation, and foster long-term business sustainability.