The role of entrepreneurial competencies in Finnish SMEs

Abstract

Previous studies indicate a lack of research in entrepreneurial competencies (ECs) in Finland. Therefore, the objective of this study is to investigate the role of ECs in Finnish small and medium-sized enterprises (SMEs). The three research questions of the study include: What are the important ECs in Finnish SMEs? What is the most important EC in Finnish SMEs? How are the important and the most important ECs used?

This study is qualitative in nature and follows a deductive research approach. As a data collection method, semi-structured interviews were conducted and the respondents were from six Finnish SMEs in four different industries, that is, cosmetic, health, food and film industry. A cross-industry analyses of the six SMEs were carried out to answer the research questions and to reach the objective of the study.

The findings of this study suggest that relationship, commitment, learning orientation, strategic, innovativeness, decision-making and problem solving competencies are important in Finnish SMEs. In addition, this study identified how the aforementioned ECs are used. Moreover, based on different industry analysis (cosmetic, health, food and film), relationship competence was identified as the most important EC.

This study offers theoretical contribution to the existing studies on ECs in Finnish context by offering insights on the important and the most important EC. The managerial implications of this study include that besides commitment, learning orientation, strategic, innovativeness, decision-making and problem solving competencies, the major focus must be on building relationship competence. This can be achieved, through effective communication with employees within the organization and by building ties and trust between an entrepreneur and his/her business networks.