Entrepreneurial Competence and Growth of Micro-Small Enterprises in Kiambu County, Kenya
DOI:
https://doi.org/10.70619/vol1iss2pp1-13Keywords:
Innovation Competency, Growth, Leadership Competency, Networking Competency, Risk-taking Competency, Micro, Small and Medium Enterprises.Abstract
Micro and small enterprises sector in Kenya is characterized by high mortality rate, three out of five fail within the first few months of operation, over 60% fail each year; and most do not survive to their third anniversary. Despite the significance of entrepreneurial competence in small business, it is not clear the influence of entrepreneurial competence on growth micro and small enterprises. Therefore, this study assessed the effect of entrepreneurial competence on growth of micro and small enterprises in Kiambu County. The specific objectives were; to establish the effect of innovation competency, leadership competency, networking competency, and risk-taking competency on the growth of micro and small enterprises. Descriptive research design was used and data collected from 1274 micro and small enterprises owners or managers. Stratified random and simple sampling was used to arrive at 304 micro and small enterprises. The collection of data was done via questions emailed online by the researcher to micro and small enterprises owners. Descriptive measures and regression analysis were used to explain the relationship between variables. It was discovered that the majority of respondents used various innovative technologies in their businesses, including Mshwari and KCB-Mpesa mobile banking technology. The findings also revealed that majority of micro and small enterprises have adopted various leadership competency facets such as results and performance-based traits, listening and engaging with workers, employee engagement (rewarding and facilitating their wellness), avoidance of unethical behavior (drugs and alcohol abuse), and supporting staff teamwork. As part of their network strategies, the majority of the respondents partnered up with other vendors for joint sales, approached former clients, and created multiple revenue streams. Cautious decision-making, taking manageable risks, careful risk analysis, and measured moves all had an effect on a company's growth. The study concluded that innovation, leadership, networking and risk-taking competencies have a positive and significant effect on growth of micro and small enterprises. The recommendation was that micro and small enterprises should embrace innovation competency as a means of enhancing their development, owners should improve their leadership skills, which, according to the results, is a critical component of firm growth and success, entrepreneurs should accept networking as a means of gaining a competitive edge and should follow risk-taking strategies by making calculated moves in their operations and carefully analyzing the available options in order to maximize their chances of landing on the best option.
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Copyright (c) 2021 Barbara Muchiri Gathoni, Evangeline Gichunge , Doreen Mutegi
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