Entrepreneurial skills and MSE performance: examining the moderation effect of education on youth-owned businesses

This study examines the impact of entrepreneurial skills on the business performance of youth-owned micro- and small-sized enterprises (MSEs). A correlational quantitative research design was employed, utilizing a cross-sectional survey to collect data from 217 young entrepreneurs. The study adapted validated scales to measure management, leadership, financial and communication skills and financial and non-financial business performance indicators. Covariance-based structural equation modelling was used to assess the relationships between variables and test the hypotheses. The results revealed that management, leadership, financial and communication skills significantly and positively affect business performance. The moderating role of education was statistically significant, confirming that higher educational levels enhance the impact of entrepreneurial skills on business performance. Theoretical frameworks, including the resource-based view, theory of planned behavior and human capital theory, were used to ground the study and inform the hypothesis development. These theories collectively emphasize the strategic importance of entrepreneurial skills and education in determining MSE success. These findings provide insights into youth entrepreneurship and have practical implications for policymakers, educators and practitioners. This study also provides future directions for exploring longitudinal evidence to observe how entrepreneurial skills and education interact to influence MSE performance over time.