RELATIONSHIP BETWEEN ENTREPRENEURIAL ORIENTATION AND GROWTH OF SMES IN NAIROBI COUNTY
Abstract
The purpose of this study was to determine the relationship between entrepreneurial orientation and growth of SME’s in Nairobi County. The study adopted descriptive research design. The population of this study comprised of 380 SME’s in Nairobi County. The sample size of the study was made up of 114 respondents drawn from both manufacturing and service SME’s in Nairobi County. Primary information for the study was collected through questionnaires. Descriptive analysis was used to determine the proportions and frequency of the variables. Statistical Package for Social Science (SPSS) was used to facilitate data analysis. The results showed that innovativeness had a positive relationship with growth of SME’s in Nairobi County. Risk taking propensity also significantly influences growth of SME’s in Nairobi County. The results of the study further found that Proactiveness was positively related with growth of SME’s in Nairobi County. It was also noted that competitive aggressiveness influences growth of SME’s in Nairobi County. Finally firm autonomy influences the growth of SME’s in Nairobi County. The results added to the body of knowledge by confirming that entrepreneurial orientation influences growth of SME’s. The study concluded that SME’s should embrace entrepreneurial orientation in order to enhance their growth trend in the Nairobi County. The study further concluded that the established regression model was fit for foresting and could be used for forecasting growth of SME’s in Nairobi County. The study recommended that the policy makers should embrace entrepreneurial orientation in their business in order to enhance growth. SME’s should review their practices and policies in line with the entrepreneurial orientations. It also recommended that future studies including other sectors in the economy and SME’s in other counties be carried out. These findings would provide an increase in knowledge and a rich data base for future research, which can then be compared with the results of this study.
Keywords: Innovativeness, Risk Taking, Proactiveness, Competitive Aggressiveness, Autonomy, SMEs
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i3.814
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