Analysis of on business owner leadership capability and Performance of Small and medium enterprises in Kenya
Keywords:
Business owner leadership capability, performance, small and medium enterprisesAbstract
The performance of most small and medium enterprises in Kenya has been declining, which is evidenced by increased cases of closure after a short operating period. This study analyzed the influence of business owner leadership capability on the performance of small and medium enterprises in Kenya. The study adopted a descriptive cross-sectional research design and target population was 2400 small and medium enterprises in Thika town’s light industrial area. The study sampled 331 small and medium enterprises owners using stratified random sampling. Findings indicated that business owner leadership capability had a positive and significant influence on performance of small and medium enterprises (β=0.696, P= .000). The study concluded that business owner leadership capability is imperative in driving the performance of small and medium enterprises. The study recommended that business owners should strengthen their leadership capabilities for effective performance. Entrepreneurs should particularly focus on the following aspects: taking calculated risks, pro-activeness in decision-making, and supporting employees’ creativity. Improvement of the mentioned aspects will result in enhanced business performance.
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