International Journal of Economics, Commerce and Management United Kingdom Vol. V, Issue 7, July 2017 Licensed under Creative Common Page 173 http://ijecm.co.uk/ ISSN 2348 0386 EFFECT OF ENTREPRENEURIAL SKILLS ON COMPETITIVE ADVANTAGE AMONG SMALL AND MEDIUM SIZE ENTERPRISES John Onditi Omare School of Business and Economics, Daystar University, Nairobi, Kenya Joanes Kaleli Kyongo School of Business and Economics, Daystar University, Nairobi, Kenya jkyongo@daystar.ac.ke Abstract The objective of the study was to establish the effect of entrepreneurial skills on competitive advantage among small and medium enterprises in Kawangware Division, Nairobi County in Kenya and the corresponding hypothesis was formulated and tested. A descriptive survey design was adopted for the study. Convenience sampling was used. The study targeted 102 proprietors of SMEs and 75 of them responded. SPSS Version 21 was used to analyze data using simple regression analysis. Research findings from the test of the hypothesis established that entrepreneurial skills lead to creation of competitive advantage among small and medium size enterprises. The study findings support the Resource Based View which explains how specific entrepreneurial skills, which are intangible resources combine with other tangible resources to enable SMEs to be competitive in the market. The research recommends further investigation of the study variables SMEs in other parts of Kenya. Keywords: Entrepreneurial skills, competitive advantage, small and medium enterprises, Resource Based View INTRODUCTION Entrepreneurial Skills are the capabilities an entrepreneur possesses in order to run a business (Hisrich & Peter, 2002) whereas competitive advantage refers to implementing strategies that are not copied and implemented concurrently by existing and potential competitors (Barney,