A Descriptive Analysis of the Influence of Entrepreneurial Orientation Dimensions On the Performance of SMEs in Kenya (Published)
Small and medium-sized enterprises (SMEs) play an important role in the world economy. They contribute substantially to income output and employment. Indeed, they dominate the world business. In spite of this, studies have failed to identify and assess the corporate entrepreneurship dimensions that lead to good performance, especially in Kenya. As such, based on a study of SMEs in Kenya, this paper examines the relationships that obtain between Entrepreneurial Orientation (EO) and firm performance among SMEs. Specifically, the study sought to find out the effect of entrepreneurial innovativeness, risk-taking and proactiveness on firm performance. The study was guided by the resource based view (RBV), contingency theory, theories of entrepreneurship and the marketing theory. It adopted explanatory research design using a census sample with the target population being all the top 536 medium sized firms between 2006 and 2013. Data was collected using a questionnaire and analyzed using descriptive statistics, Pearson’s bivariate correlation, multiple regression and moderated regression analysis. Results revealed that entrepreneurial innovativeness, risk taking and proactiveness have a direct positive relationship with performance of SMEs. From the findings, the study recommended the need to intensify initiatives that encourage a better understanding of EO dimensions in boosting firms’ competitive positions and superior performance; firms should be more entrepreneurial in order to attain superior performance and survive the intensively competitive market environment. They should continuously innovate, especially through new product development, being first to enter the market with new products and in the use of creative new solutions that lead them to be recognized by competitors as leaders in innovation. SME owners/managers also need to enhance their risk-taking behaviour by encouraging staff to take risks with new ideas, make effective changes to their products and be willing to accept at least moderate levels of risk, engage in risky investments and have the courage to seize new opportunities, even if this may involve great financial risks
Keywords: Entrepreneurial Orientation Dimensions, Influence, Kenya, Performance, SMEs
The Influence of Financial Support Services on the Financial Performance of Women-Owned Enterprises in Eldoret, Kenya (Published)
Micro-credit services target low income clients who lack access to banking and related services. The study sought to establish the influence of micro-credit services on financial performance of women-owned enterprises in Eldoret. The financial performance measures were the net profit, current, inventory and times interest earned ratio. Based on the research, this paper discusses the influence of financial support services on the financial performance of women-owned enterprises which are funded through micro-credit. The study targeted a population of 1721 which constituted of women who owned enterprises and were registered with the county government of Uasin Gishu County. Study samples were drawn through purposive random sampling. A sample size of 313 was obtained using the Krejcie and Morgan formula. Questionnaires were used to collect data. Descriptive and inferential statistics were used to present and analyse the data obtained. Data was then presented in form of tables, and explanations provided. There results showed that there was no significant influence of financial support services on financial performance of women-owned enterprise (p=0.00). From the study, it was observed that the financial performance of the women-owned enterprises in Eldoret improved due to the increase in the net profit, current, inventory turnover and times interest earned ratio. The study concluded that multiple loan products and favourable loan terms helps boost the financial performance of women owned enterprise. The study recommended that microfinance institutions should restructure the collateral and interest requirements by the women entrepreneurs by using credit scoring and business history as alternatives to asset-based security. This paper underscores the need to carry out more research on factors affecting women-owned enterprise in other areas of similar socio-economic patterns to ascertain whether or not financial support services have had a positive impact on the financial performance of women-owned enterprises. Moreover, a study should be conducted on the influence of micro-finance lending on financial performance of women-owned enterprises in Eldoret town.
Keywords: Eldoret, Financial Performance, Financial Support Services, Influence, Kenya, Women-Owned Enterprises