Lyles (2004), further evaluate managerial competencies as measured by the education of the founder, managerial experience, entrepreneurial experience, start-up experience and functional area experience versus new venture growth. The results show that relative profits tend to be high when an entrepreneur has more education and experience in the line of business. On the other hand, profitability tends to be low when the entrepreneur has only start up and managerial experience, but lacks an educational background. Other empirical studies, such as Smallbone and Welter (2001), found that managerial competencies as measured by education, managerial experience, start-up experience and knowledge of the industry positively impact on the growth of new MSEs.