Critical entrepreneur knowledge dimensions for the SME performance

Purpose - The purpose of this paper is to illustrate the entrepreneurship knowledge construct with its dimensions and its significance for the firm performance via a model. This research attempts to comprehensively examine the criteria for measuring entrepreneurial knowledge performance outcomes in small and medium enterprises. To date no studies developed a set of widely accepted measurement criteria associated to entrepreneur knowledge and firm performance. This paper, therefore, aims to fill the gap. Design/methodology/approach - Existing studies on entrepreneurial knowledge were reviewed and their limitations were identified. Mailed structured questionnaire data for this study were collected from SME in Slovenia (168 usable responses). Exploratory and confirmatory factor analysis with structural equation modelling was used to estimate the model. Findings - The model hypothesis on the relationship among entrepreneurial knowledge and performance were mainly supported, thus reflecting the positive effect of entrepreneurial knowledge and all its dimensions on SME performance. Research limitations/implications - The study is limited to Slovenian SME, but can be generalised to other regions. Practical implications - Entrepreneurial knowledge can have beneficial effects on the firm's growth and profitability. The findings can be used to guide entrepreneur in developing different dimensions of knowledge. Originality/value - This study proved latent elements of entrepreneurial knowledge model. It gives valuable information, which hopefully will help SMEs to respect more the meaning of knowledge.