Entrepreneurial Competencies and Organizational Performance of Micro and Small Enterprises in Machakos County, Kenya
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Date
2023
Authors
Oraya, Naftaline Achieng
Maina, Samuel
Journal Title
Journal ISSN
Volume Title
Publisher
IAJHRBA
Abstract
MSEs performance is observed as the long
term well-being and strength of the enterprise
relative to its competitors. When sufficient
performance lacks, survival of MSEs in
competitive business environment will be
impossible. Whereas, the contribution of
small enterprises in development is
significant, there are several challenges that
are faced by MSEs that limits their
development and survival. In developing
countries the failure rate of small businesses
is much higher. The main purpose of the
study was to establish the effects of
entrepreneurial competencies on
performance of MSEs in Machakos County,
Kenya. Specifically, the study sought to
examine the effects of management skills,
risk taking, creativity and opportunity
seeking on performance of MSEs in
Machakos County, Kenya. The study will be
anchored on trait entreprenurship theory and
schumpeter’s theory. Descriptive survey
design was adopted. Managers of MSEs were
targeted; therefore, the target population
was5,624 respondents. The study selected a
sample of 373 respondents. To obtain data
questionnaires were employed. Data
collected included primary data which was
analyzed using frequencies, percentages,
mean scores and standard deviations.
Inferential statistics and in particular pearson
correlation and regression analysis was also
used. SPSS software was used for the
computations. Tables and figures were used
in presentation of results. The study
computed correlation analysis to test the
association of the study variables and the
outcomes were presented in tables. The study
found that management skills have positive
association with organizational performance
of MSEs; risk taking has positive link with
organizational performance of MSEs;
creativity has positive, significant link with
organizational performance of MSEs and
opportunity seeking had a positive link with
organizational performance of SMEs. The
study therefore recommends managers of
MSEs in Machakos County to make an effort
to increase their skills, both technical and
interpersonal. This can be achieved by
enrolling in short entrepreneurial courses that
would help them to enhance their skills.
Entrepreneurs should conduct in-depth
research before taking risks i.e. taking
calculated risks. This would allow them to
identify whether the risk is worth taking; it is
important to ensure that the risk is
manageable. They should embrace
technology because it is through technology
that creativity can be improved. It is also
important for MSEs to seek new
opportunities through creation of new
products, venturing into new markets and
being innovative. This means they should
embrace change.
Description
Article
Keywords
Creativity, Entrepreneurial competencies, Management skills, Micro and small enterprises, Opportunity seeking, Performance, Risk taking
Citation
Oraya, N. A., & Maina, S. (2023). Entrepreneurial competencies and organizational performance of micro and small enterprises in Machakos County, Kenya. International Academic Journal of Human Resource and Business Administration, 4(2), 257-272.