Entrepreneurial Marketing Capability and Performance of Small and Medium Enterprises in Kenya

Abstract

The role small and medium enterprises play in propelling economic growth in Kenya and worldwide cannot be overlooked. However, the majority of these businesses, particularly in developing countries experience severe competition from large international businesses. Most of these small businesses have ended up closing down since they could not cope with the rapidly growing competitive environment. This paper sought to investigate the role of entrepreneurial marketing capability on the performance of small and medium enterprises in Kenya. The study adopted a descriptive cross-sectional research design. The study target population constituted small and medium enterprises in Thika town’s light industrial area, Kiambu County in Kenya. The entire target population comprised approximately 2400 licensed small and medium enterprises majorly in manufacturing, trade, and service sub-sectors. The study sampled 331 small and medium enterprise owners using stratified random sampling. The findings revealed that entrepreneurial marketing capability positively and significantly influences the performance of small and medium enterprises. The study concluded that entrepreneurial marketing capability is a significant contributor to small and medium enterprises’ performance. The study recommended that small and medium enterprise owners should strengthen their marketing capabilities. In particular, they should focus on the following aspects: Market sensing, partner linking, customer-focus strategy, regular branding, and discounted sales. Improving these aspects will result in enhanced business performance.