Entrepreneurial Orientation and the Performance of Youth Owned Funded Small and Medium Enterprises (SMEs) in Chuka Town (Tharaka-Nithi County) Kenya.
- June 11, 2021
- Posted by: rsispostadmin
- Categories: Business Administration, IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue V, May 2021 | ISSN 2454–6186
Dr. Gilbert Mugambi Miriti, Ph.D.
Department of Business Administration Chuka University P.O Box 109-60400. Chuka, Kenya
Abstract
Youth owned Small and Medium Enterprises (SMEs) play an important social and economic role among the Kenyan Youth who are unable to find salaried employment in the formal sector. The performance of the sector is therefore a great concern. While there are other factors that contribute to business performance Entrepreneurial Orientation(EO) is recognized among the important factors in business performance and profitability yet it has not been given consideration among the youth owned SMEs interventions. The purpose of this study was to explore the influence of Entrepreneurial Orientation on Performance of Youth owned funded small and medium sized enterprises in Chuka Town of Tharaka-Nithi County. The study used descriptive survey design. The target population was 146 businesses funded and registered by Chuka Youth Office. Respondents were sampled from 48Youth owned SMEs which were funded in food processing with 41 who responded in Chuka Town. Data was collected using a 5-point Likert scale questionnaire to gather perception from the respondents. EO was measured using a scale based on previous studies with innovation, risk taking and pro-active as part of EO dimensions. The study generated both qualitative and quantitative data. The collected data analyzed using inferential and descriptive statistics. The findings revealed that owner/ managers of good performing businesses were supportive and encouraged new ways of doing business and that in the past several years businesses had pioneered the development of innovations in the business with respondents’ having introduced new products / services over the past three years implying that the businesses have not only been innovative but also risk taking. On the basis of these findings the following recommendations were made: business should embrace entrepreneurial mindset, CEOs and founders to create necessary environment that would encourage and reward those working in the business to be more innovative, creative, risk taking and persistent in their business pursuit for improved performance and become more competitive. The findings therefore suggest that innovation which is the driving force in entrepreneurship is key to good business performance and development and that funding alone without innovation will not guarantee business growth. The study therefore concludes that entrepreneurship and business training is necessary before funding for the youth to acquire necessary skills and embrace innovation in their business practices.
Key term: Entrepreneurial orientation, businesses performance, Innovativeness, entrepreneurial mindset, Risk taking
1.0 Introduction
Youth owned Small enterprises play a critical role in the social and economic development of many countries in the world. Small and Medium Enterprises (SMEs) play a crucial role in overall economic performance as they are strongly involved in employment generating activities and value addition which augment economic growth (Rusu and Roman, 2017). The recognition of the sector dates back to 1972, when International Labour Organization (ILO) conducted a study on employment and income in Kenya. The study revealed out that the sector had potential to employ and generate income to a large percentage of the population. Recently interest in the youth entrepreneurship has been fueled due to high levels of unemployment amongst the young people and as a way of creating employment opportunities through creation of small enterprises.
