Impact of Entrepreneurial Training on Performance of Micro, Small and Medium Enterprises in Nakuru County.

Abstract

Business enterprises are regarded as engines of economic development in many nations of the world. Many of these enterprises are faced with a myriad of problems especially in their initial stages, key among them, insufficient business and management skills. In this study, enterprises were categorized as micro, small and medium. Entrepreneurial training enables enterprise operators adopt better management practices such as profit retention, good customer relations, timely loan repayments and structured bookkeeping. Researchers have asserted that few programs are assessed and it is on this ground, that the study sought to ascertain the impact of entrepreneurial training on performance of micro, small and medium enterprises focusing on Nakuru County. It specifically investigated the impact of entrepreneurial training on. performance of enterprises, nature of entrepreneurial skills provided, deficiencies in training programs and finally gathered suggestions from respondents on how entrepreneurial training could be improved. The study findings will aid government capacity building agencies, policy makers, non-governmental organizations, religious bodies, financial institutions, tertiary colleges, universities and individuals in developing viable capacity enhancement programs for entrepreneurs. The literature review was primarily concerned with three key aspects: nature of entrepreneurial training offered, deficiencies in business training programs and impact of training on performance of enterprises. The study design was descriptive survey and data for this exercise was collected using pre-tested questionnaires. The researcher obtained a sample of fifty enterprise operators previously trained by Kenya Institute of Business Training (KIBT) and Joints Loans Board (JLB) in Nakuru County between the years, 2010 and August, 2012. A sample composed of enterprise operators drawn from three identified stratas within Nakuru County was obtained using stratified random sampling. Data collected, was edited, coded and then analysed using computer application programs notably, Statistical Package for Social Scientists and Microsoft Excel. Findings were presented using tables and bar graphs. Study findings indicated that, there was a general improvement in business and entrepreneurial skills amongst MSMEs after undertaking either KIBT or JLB training. MSMEs appreciated areas like management of working capital, record keeping and marketing as important ingredients for effective enterprise management. Results obtained showed that there is a correlation between entrepreneurial skills and performance of MSMEs. The researcher recommends that KIBT in conjunction with JLB develop a customized and comprehensive program specifically meant for loan beneficiaries that will incorporate among others, areas such as risk management, business expansion strategies and management of loan delinquency and default. The researchers' total budget amounted to approximately fifty five thousand, five hundred shillings.