Assessing the impact of MSMEs entrepreneurial competency on transformational entrepreneurship in a developing economy

Previously, it was recognized that Micro, Small and Medium Enterprises (MSMEs’) entrepreneurial competencies (EC) play a critical role in supporting MSMEs’ systemic development. However, there is minimal literature regarding how MSMEs’ characteristics impact ECs in sustaining their systemic development towards producing transformational entrepreneurship (TE). This study addresses this gap and provides an increased understanding of the phenomenon. In this correlational, quantitative study, the MSMEs characteristics and ECs were tested with data collected from 576 MSMEs using SPSS. The study found a positive correlation between the MSMEs’ characteristics and ECs. The study identified Nigerian MSMEs’ deficit of essential ECs (business ethics, business management, business strategy, financial management, marketing management, and opportunity identification). The study discussed how TE outcomes in Nigeria would assist theory and practice by focusing on ECs development. In addition, it offers potential benefits for developing economies with similar economic conditions. Future research opportunities are also identified.