ENTREPRENEURIAL FACTORS INFLUENCING BUSINESS PERFORMANCE AMONG SMALL AND MEDIUM ENTERPRISES IN MURANG’A COUNTY
Abstract
The general objective of this study was to investigate the factors influencing business performance in SMES in Murang’a County, a survey of SMES in Murang’a County. The two specific objectives of the study included: To establish the influence of access to finance on business performance among small and medium enterprises in Murang’a County and to examine the influence of entrepreneurial training on business performance among small and medium enterprises in Murang’a County. The study used a descriptive survey research design. The study’s target population was 375 SME’S, from which a sample of 113 respondents was drawn for the study using 30% of the target population. This included SME’S in these sectors, agricultural, carpentry, rabbit farming, poultry business, dairy farming and mechanics. The sample was selected through stratified sampling techniques. The researcher collected data using both structured and unstructured questionnaires and also through use of interview schedules. Quantitative data was analyzed using descriptive statistical tools namely frequencies, percentages, mean and standard deviation, while inferential statistical tools such as correlation and regression were used to determine and explain variable relationship; through SPSS version 22 computer program. The study recommends that Entrepreneurs in the SME sector should ensure there is a training policy in the organization. The study recommends that financial institutions should be in a position to give loans and other credit facilities and financial advisory services to SME’S in order to equip them with knowledge on financial management to help them expand their businesses. The financial institutions should assess the entrepreneur’s credit worthiness before issuing loans and they should not assess factors as gender and an individual’s age. The study recommends that future researchers should focus on other variables that may influence SMES business performance and growth such as availability of markets, laws and regulations, infrastructural networks. A similar study could be carried out in other sectors such as women owned SMES and also other SMES in other counties to find out whether the same results shall be obtained.
Key Words: Entrepreneurial Training, Access to Finance, Business Performance, SMEs
Full Text:
PDFReferences
Armstrong, M. (2006). A Handbook of Human resource Management practice. (10thed). London: Kogan page Limited.
Abdul- Moyeen, A. F. M. (1997). Strategic planning and strategic awareness in small enterprises: A study of small engineering firms in Bangladesh. PhD Thesis, University of Stirling, United Kingdom.
Akoten, J. E., Sawada, Y. & Otsuka, K. (2006). The Determinants of Credit Access and Its Impacts on Micro and Small Enterprises: The Case of Garment Producers in Kenya. The Journal of Economic and Cultural Change, 13, 927-944.
Altman, M. (2009).A behavioral-institutional model of endogenous growth and induced technical change. Journal of Economic Issues, 43 (3), 685- 713.
Alvarez S. A. & Barney, J. B. (2007). Discovery and creation: Alternative theories of entrepreneurial action. Strategic Entrepreneurship Journal, 1, 11-26
Alvarez, S. A. (2003) Resources and hierarchies: Intersections between Entrepreneurship and Strategy. In Ács, Z. J. & Audretsch, D. B. (Eds), Handbook of entrepreneurship research: An interdisciplinary survey and introduction (pp 247-263). and benign environments, Strategic Management Journal, 10(1), 75–87.
Anderson, D. R., Sweeney, D. J. & Williams, T. A. (2007).Statistics for Business and Economics. New York: West Publishing Company
Arburkle, J. L. (2007). AMOS Version 16.0 – Users Guide. Chicago: SPSS Inc.
Aryeetey, E. (2004). Supply and demand for finance of small enterprises in Ghana, World Bank discussion paper 251, The World Bank ,Washington, D.C., 12-47. Asia Pacific Economy , 9 (2) 191 -208Assoc., 67-92.
Atieno, R. (2009). Linkages, Access to Finance and the Performance of Small-Scale Enterprises in Kenya Research Paper No. 2009/06, UNUWIDER.
Audretsch, D. B. & Thurik R. (2001), Linking Entrepreneurship to Growth, OECD
Audretsch, D. B., Lehmann, E. E. & Plummer L. A. (2009). Agency and Governance in Strategic Entrepreneurship. Entrepreneurship: Theory and Practice, 31(1), 149- 166
Ayyagari, B ( 2008). The business enterprises in Nigeria, Lagos. (2008). Small firms are the backbone of the Nigerian economy. Africa
Baas, T., & Schrooten, M (2005). Relationship Banking and SMEs: A theoretical Analysis, Berlin: German Institute for Economic Research, 12-23.
Bartlett, J. E., Kotrlik, J. W. & Higgins C. C. (2001). Organizational Research: Determining appropriate sample size in survey research. Information Technology, Learning and Performance Journal, 19(1), 43-50
Basu, P (2006) Improving Access to Finance for India's Rural Poor, Washington D.C.: The World Bank,
Beck (2007) The basic analytics of access to financial services. Policy Research Working Paper Series, Washington: The World Bank.
Beck, N (2000) Finance and the sources of growth, Journal of Financial Economics 58: 261-300.
Beck, T. (2006) The influence of financial and legal institutions on firm size. Journal of Banking & Finance 30: 2995-3015
Beck, V. (2005): Financial and Legal Constraints to Growth: Does Firm Size Matter? The Journal of Finance, 60(1), 137-177.
Boden, R.J. & Nucci, A.R. (2000).On the survival prospects of men’s and women’s new business ventures. Journal of Business Venturing, 15(4), 347–362.
Bruch, H., Gerber, P, & Maier, V. (2005). Strategic change decisions: doing change.
Bryman, A. (2001). Social Research Methods. New York: Oxford Publishers.
Bryson, J. M. (1995). Strategic Planning for Public and Nonprofit Organizations.
Burgelman, R. A. (1988). Strategy making as a social learning process:
Callaghan, C.W. (2009). Entrepreneurial Orientation And Entrepreneurial Performance Of
Carpenter, R. E. and Petersen, B.C. (2002): Is the Growth of Small Firms Constrained by Internal Finance? Review of Economics and Statistics,84(2): 298–309.
Carrier, C., (1999), The Training and Development Needs of Owner-manager Central Johannesburg Informal Sector Street Traders challenges. Journal of Management, June, 139-159
Coad, A. (2008). Innovation and firm growth in high-tech sectors: a construct and its dimensions. Journal of Management, 29: 963–989.
Cole, G. (2004). Management Theory and Practice. London: Powerbook. comparison of strategies and performance, Journal of Management Studies,28, 439–462.
Cooper, D. R. & Emory, C. W. (2000). Business Research Methods, Chicago: Irwin, 5th Edition
Cooper, D.R. and Schindler, P.S. (2011). “Business Research Methods”, 11th, edition.
Coplin, L. H, (2002). Competitive advantage and the SMEs: The role of distinctive competences as determinants of success, PhD Thesis, University at Autononma De Barcelona.
Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests, Psychometrika, 16, 297– 334.
Drucker, P. (2005). Innovation and Entrepreneurship practice and principles. Oxford: Elsevier Butter Worth Heinemann publications.
Dutton, J. E. & Duncan, R. B. (1987). The influence of the strategic planning.
Ellis, A.; Cutura, J.; Dione, N.; Gillson, I.; Nanuel, C. & Thongori J. (2007) entrepreneurship and strategic management. Strategic Management Journal,
Entrepreneurship Theory and Practice, 31 (3), 341-364
Entrialgo, M.; Fernández, E. & Vázquez, C. J. (2000). Linking entrepreneurship and
Gender and Economic Growth in Kenya: Unleashing the power of women.
Guide to Strengthening and Sustaining Organizational Achievement. Rev. ed. San Francisco: Jossey-Bass. internal corporate venturing, Interfaces, 18, 74–85.
Ireland. Journal of Business Venturing, 7(3), 237–251.
Keh, H.T., & Nguyen, T.T.M. (2007). "The Effects of Entrepreneurial Orientation and Marketing
Kenya Institute for Public Policy Research and Analysis (KIPPRA) ( 2013). Kenya Economic.
Kenya: A case of ICT firms in Kiserian Township, Kajiado District of Kenya.
Kothari, C. R. (2007). Research Methodology - Methods and Techniques. New Delhi: New Age International Publishers.
Kotler, P. & Armstrong, G. (2006): Principles of Marketing. Englewood Cliffs:
Kozan, M. K., Oksoy, D., &Ozsoy, O (2006). Growth plans in small businesses in Turkey: Individual and environmental influence, Journal of Small Business Management, 44 (1).
Kumar, A, Beck, T, Campos, C and Chattopadhyay, S (2005) Assessing financial access in Brazil World Bank Working Paper, Washington: the World Bank.
Kumar, A., & Francisco, M (2005). Enterprise size, financing patterns and credit constraints in Brazil: analysis of data from the Investment Climate Assessment Survey, World Bank working paper No.49.
Kuratko, D. &Hodgetts, R. (1998).Entrepreneurship – A Contemporary Approach.
Leibenstein, H (1978). General X-Efficiency Theory and Economic Development.
Levy, B. (1993). Obstacles to developing indigenous small and medium enterprises: An empirical assessment, World Bank Economic Review, 7, 65- 83.
Longenecker, J. G., Petty, C. W., Moore, J. W. and Palich, L. E. (2006).Small Business Management, An entrepreneurial emphasis. London: Thomson South Western.
Low, M. B. & MacMillan, I. C. (1988). Entrepreneurship: Past research and future New York: Oxford University Press.
DOI: http://dx.doi.org/10.61426/sjbcm.v3i4.382
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.