Conference Paper
Youth Entrepreneurial Capabilities and Performance of their Businesses
No.
ERF_31_MIC36
Publisher
ERF
Date
March, 2025
Topic
D. Microeconomics
In this study, we examine the relationship between the firm-level capabilities of the youth business owners and the performance of their small businesses. The study aims to contribute to understanding youth entrepreneurship in Sudan, amidst the current armed-conflict, and we see advantages in unveiling the entrepreneurial capabilities of young people in fragile and crisis situations. The sample of this study consisted of all small businesses registered by Kassala locality, East Sudan. The population of the study sized 1000 registered businesses, with different business ages. Out of this population, a sample size of 274 businesses were calculated using calculator.net website, as well as other sources. Of the businesses surveyed, 265 entrepreneurs completed an interviewer-administered interview, leading to high response rate of 97 percent. Data collectors were trained prior to the actual field data collection, they were oriented on the research methods and the detailed questions of the questionnaire which was originally designed in English and translated to Arabic. The 265 responding businesses had a median age of 5 years and a median of 15 employees. The sample covered the three economic sectors of industries, agriculture, and services. This study examined empirically how the capabilities of youth-owned businesses in Sudan, and the influence of resources on the performance of these businesses. The study anchored on the resource-based view theory which helped in setting the research model. The findings presented in the study emphasized the support to the resource-based view of the firm, which argues that the firm’s capabilities are central in explaining the firm’s performance. In addition to extensive critical literature review, the study explored the data collected descriptively by explaining the features of the businesses and the correlational aspects among the variables. The study used inferential statistics to test the hypotheses and directions of the relationship between each set of independent and dependent variables. Consistent with previous studies, independent variables in this study include the firm resources, business owner entrepreneurial skills, and previous experience. Firm’ resources were measured using nine-item scale which allowed asking respondents to rate ordinally, Likert-5 points ranging from 1=very poor to 5=very good as measurement of quality. Business owner skills were measured by ten-item scale for ordinal rating using Liker-5 points ranging from 1=very poor to 5=very good as measurement of quality. Previous experience of the entrepreneur was categorized into entrepreneurial and family in consistency with previous studies. In regard to entrepreneurial and family experience, respondents were asked a dichotomous question of 1=yes, and 2=no. Respondents were then asked to mention years of experience in case they answered yes to one of the two options; also asked to mention the number of businesses they worked before the current business. Furthermore, types of businesses they incumbent before their current undertaking, in addition to a question related to experience and familiarity with their current business undertaking. Dependent variable for this study were monthly sales volume, sales growth in recent two years (2023-2024) and number of employees. This is consistent with previous studied cited above. Monthly sales volume was an ordinal question. Number of employees variables were also included in a scale question (males, females and total). Sales growth (two years) is measured ordinally in ten-item scale ranging from 1= <10% to 10= >90-100%. Respondents were also asked to rate their growth in income using ordinal three-item of 1=increased, 2=remained same, and 3=decreased. This was same for growth in number of employees with ordinal rating of 1=increased, 2=remained same, and 3=decreased. Due to the conflict situation in Sudan which impacted aspects of recruitment and retention of personnel in all type of businesses and sectors; it has been observed sizable number of businesses indicated that they laid off employees to maintain the operations, and hence income distributions concentrated narrowly on certain number of employees. Examinations of the relationship between the variables was managed through descriptive statistics such as factor analysis, cross-tabulations and correlations. Regression analysis was executed to examine and test the relationship between each set of the three business capability variables, against the outcome variables, which mainly observed financial measures. Finally, the overall model was tested using multiple regression with enter criteria which displayed in four model, the first model determined the effect of control variable, while the remaining principal three models cater for the degree and magnitude of variance caused. Findings and implications drawn from the study presented, discussed, and projected trends. Some of the findings of the study are consistent with previous studies conducted in other countries, and where variations occurred, reasons and likelihoods explained. This study is among the rare and pioneer investigations among Sudanese entrepreneurs and their capabilities in harnessing business internal resource capabilities to affect performance.
Speakers
Mohamed Elsayed Abdelmomen
Country Representative, UNIDO Sudan
Authors
Munira Abdalla Yousif Abdelrhman
Expert Consultant in Entrepreneurship Courses in Kassala...