This paper examines the effect of the education level of owner-managers on the performance of small and medium-sized enterprises in Mauritius. It captures the effect of the level of education of owner-managers as measured by primary, secondary and tertiary education and finds that education is an important characteristic of the owner-manager which contributes positively to firm performance. Tertiary educated owner-managers contribute more to firm performance. Hence, entrepreneurs should be encouraged to improve their education levels and more highly educated individuals should be encouraged to set up firms as they are likely to have better performing firms that create more employment.