ABSTRACT
The role and personality of the entrepreneur/manager/owner of the small firm and their strategic decisions are in direct relationship with the competitiveness and innovative performance of the small and medium-sized enterprise (SME). According to recent research results in 305 small tourism firms in Israel, the entrepreneurial human capital and particularly the managerial skills were the strongest contributors to both short-term and long-term business performance and growth. The entrepreneur needs to be persistent and committed to the task in order to enhance the performance of the firm and motivate their employees through inspiration. This chapter argues that merely the possession of the following competencies does not make an entrepreneur competent. Competencies can only be demonstrated by a person's behaviour and actions, which in turn correspond to the dynamic characteristic of competitiveness. Finally, the chapter concludes that the organizing, relationship and conceptual competencies of the entrepreneur are positively related to the organizational capabilities of an SME.
