Economic Transformation: Reliance to Small Businesses and Export Orientation (Published)

Uzbekistan as a low-middle-income country with a population of 30 million, has seen stable economic progress (with the growth of average 8 percent per year) since 2004 and extreme poverty has declined from 27 percent in 2000 to 15 percent in 2012. The government has set an ambitious goal for the country—to join the group of upper-middle-income countries by 2030. This study discusses the main challenges of the structural transformations that the economy will face to achieve this objective.

Keywords: Export, Growth, Small Business, Transformation, Uzbekistan, import

Influence of Entrepreneurial Networking on Small Enterprise Success: A Service Industry Perspective (Published)

The increasing use of networks for Small and Micro Enterprise has been reported as a factor of influents in development process of entrepreneurial activity. In Kenya Small and Micro enterprises account for over 70% of the enterprises. They are a source of livelihood of low income earners and also a major source of innovation in creating new products technologies and services.  Entrepreneurial networking includes the linkages and connectivity through which entrepreneurs obtain information resources, knowledge and social support about market opportunities. While network relationships have been recognized as indispensable for SMEs to the achievement of growth, a particular focus on entrepreneurial networks in the service industry has been limited. The main objective of the study was to examine the influence of firm’s entrepreneurial networking and its influence on the success of Small and Micro enterprises in Eldoret Town in Uasin Gishu County. The study utilized exploratory survey design. Specific objectives were: to examine the relationship between entrepreneurial networks and enterprise success, and to determine the relationship between entrepreneurial ties and enterprise success. Small and Micro business owners in the service industry were divided into a sample and a simple random technique was employed whereas sample of 240 SMEs in the service was drawn from a target population of 600 registered SMEs in the service sector, Eldoret Town, Uasin Gishu County. The study was guided by Relational Theory of Social Networks.  Data was sorted coded and analyzed using inferential statistics as: Pearson’s product moment correlation, Chi-Square methods and Analysis of variance (ANOVA) and multiple regressions. The study found out that, there was a strong positive relationship between networking [r=.683] and ties [r=.559] on entrepreneurial success. This indicated that an increase in networks and ties will lead to greator entrepreneurial success. It is hoped that the results of this study will assist to sharpen entrepreneurs’ skills and policy formulation and development of entrepreneurial networking.

Keywords: Entrepreneur, Entrepreneurial Networks, Micro business, Networking, Service Industry, Small Business, Social Capital and Resources.

TRUST AND GOODWILL AS DRIVERS OF SMALL ENTERPRISE SUCCESS: EVIDENCE FROM KENYAN SERVICE SECTOR INTELLECTUAL CAPITAL PERSPECTIVE (Published)

Entrepreneurial trust and goodwill play an important role in the success of Small and Micro enterprises. Wicks and Berman (2004) emphasized the important idea that trust is a costly governance mechanism, to be deployed only when necessary. They suggest that the greater the degree of interdependence between the parties to the exchange, the greater will be the need for trust. According to Yusuf (1995) the most critical factors contributing to business success consist of good management skills, access to financing, personal qualities, and satisfactory government support. Goodwill cannot be felt if it is an intangible asset which can be earned through a name or reputation of the organization (Claessens et al., 2000). Most entrepreneurial effective group and organization are those with the highest level of trust and norms. Goodwill from various stake holders like family, friends and other people contribute to entrepreneurial success. The main objective of the study was to examine Trust and goodwill as drivers of small enterprise success. The study utilized exploratory survey design. Specific objectives were: To assess the influence of trust on enterprise success and to examine the relationship of good will on enterprise success. Small and Micro business owners in the service industry were divided using simple random technique to obtain a sample size of 240 SMEs in the service sector drawn from a target population of 600 registered SMEs in the service sector, Eldoret Town, Uasin Gishu County. The study was guided by Relational Theory of Social Networks. The study employed both qualitative and quantitative methods of data collection. Data was sorted coded and analyzed using inferential statistics namely, Pearson’s product moment correlation, Chi-Square methods and Analysis of variance (ANOVA) and multiple regressions. The study found out that, there was a strong positive relationship between trust [r=.907], and good will [r=.833] on entrepreneurial success. This indicated that an increase in trust and goodwil will lead to greator entrepreneurial success.The study findings will contribute great to the academic debate.

Keywords: Business Networking, Micro business, Service Industry, Small Business, Trust and goodwill