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The encouraging outcomes of organizational success, emerging from productive entrepreneurship has led academic and administrative attention on concepts of entrepreneurial competencies and entrepreneurial characteristics in the last few decades. In Somalia particularly, the women have been found to be playing a significant role in the small business sector, despite the several challenges faced by them. The present research aims at assessing the effect of entrepreneurial competencies and entrepreneur’s demographic and personal characteristics on business performance among initial stage entrepreneurs. Further, it also aims at spotting the main challenges encountered by the women entrepreneurs involved in Small business in Somalia. The study adopted extensive relevant literature reviews on the studied variables and drawing conclusions based on the conducted reviews. The reviewed studies showed that entrepreneurial characteristics and entrepreneurial competencies are positively related to overall business performance. Further, through the studies, the study also supports the claim that Somali women entrepreneurs make a significant contribution to the small-scale businesses in Somalia but faced several challenges that must be catered to as an urgency.
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