ENTREPRENEURIAL COMPETENCIES AND FINANCIAL PERFORMANCE OF SMALL AND MICRO ENTERPRISES (A CASE OF SMEs AT THE MUTHURWA MARKET IN NAIROBI)
Abstract
Entrepreneurial competencies have a profound role in the performance of an entrepreneur’s business, especially with regards to SMEs. This research aimed at finding out the effects of entrepreneurial competencies on the financial performance of SMEs. The aspects of entrepreneurial competencies looked at were; creativity and innovation, risk taking, motivation and entrepreneurial leadership. The study was guided by three theories: the resource-based theory, the competency-base theory and the expectancy theory. The research used a quantitative descriptive survey design. The target population was 2,800 SMEs in Muthurwa Market in Nairobi. A sample of 375 SMEs was selected using Krejcie & Morgan (1970) sampling formula. The researcher collected data using questionnaire and interview guides. The data collected was coded and analyzed using the SPSS software. The relationship between the independent and the dependent variables was established using the Pearson’s Moment Correlation Coefficient. The analyzed data was presented using frequency tables, charts, percentages. The findings of the study revealed that: creativity and innovation had a significant positive relationship with financial performance; motivation had an insignificant positive relationship with financial performance; risk-taking had a significant positive relationship with financial performance, and lastly; entrepreneurial leadership had an insignificant relationship with financial performance. The study recommended that studies based on this topic could use higher statistical tools to measures relationship between the independent and the dependent variables like regression analysis.
Keywords: Entrepreneurial Competencies, Creativity and Innovation, Motivation, Risk-Taking, Entrepreneurial Leadership, Financial Performance
CITATION: Kewaiy, N. T., Mathenge, P., Kweyu, M. (2021). Entrepreneurial competencies and financial performance of small and micro enterprises (A case of SMEs at the Muthurwa Market in Nairobi). The Strategic Journal of Business & Change Management, 8 (3), 773 – 783.
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DOI: http://dx.doi.org/10.61426/sjbcm.v8i3.2062
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