IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/vxy2022i3p156-173.html
   My bibliography  Save this article

Effect of Entrepreneurial Skills on Organizational Performance of Small and Medium Enterprises in Nakuru City-Kenya

Author

Listed:
  • Albanus Kioko Mutuku
  • Betty Nzula Kiilu
  • Philiph Mathuku
  • Daniel O. Auka

Abstract

Purpose: Entrepreneurial skills influence the performance of Small and Medium Enterprises in Kenya. The low business performance of SMEs in Kenya may be attributed to weak managerial and technological, low market share, the shortage of capital, the narrow range of the market. One of the ways of tackling the poor performance of SMEs is improving their entrepreneurial skills. The purpose of research is to determine how entrepreneurial skills influence the level of performance of SMEs in Kenya. Design/methodology/approach: Data was collected from a sample of 20 small and medium sized enterprises. This study used correlational survey design to collect data from a sample of 20 respondents in order to establish the effect of entrepreneurial skills on organizational performance of Small and Medium Enterprises. Findings: The findings of the study show that entrepreneurial skills have a statistically significant positive relationship with SMEs performance. The positive relationship between entrepreneurial skills and performance of SMEs means that, as entrepreneurial skills increase among the SMEs in Nakuru city, their performance increases. It can also be concluded that majority of the firms in Nakuru city acknowledge the need for entrepreneurial skills in execution of their daily activities. More so, communication and entrepreneurial literacy skills are very paramount for good performance of SMEs. Practical implications: Based on the findings of the study, SMEs operating in hotel and restaurant sector should focus on entrepreneurial skills heavily since they have a positive effect with their general performance. Originality value: The managers of SMEs should encourage the adoption of entrepreneurial skills to help in improving their performance, improving the quantity of sales, securing larger market share and enhancing their sustainability through greater customer satisfaction.

Suggested Citation

  • Albanus Kioko Mutuku & Betty Nzula Kiilu & Philiph Mathuku & Daniel O. Auka, 2022. "Effect of Entrepreneurial Skills on Organizational Performance of Small and Medium Enterprises in Nakuru City-Kenya," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 156-173.
    • Handle: RePEc:ers:ijebaa:v:x:y:2022:i:3:p:156-173
    as

    Download full text from publisher

    File URL: https://ijeba.com/journal/782/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mingyue Fan & Sikandar Ali Qalati & Muhammad Aamir Shafique Khan & Syed Mir Muhammad Shah & Muhammad Ramzan & Raza Saleem Khan, 2021. "Effects of entrepreneurial orientation on social media adoption and SME performance: The moderating role of innovation capabilities," PLOS ONE, Public Library of Science, vol. 16(4), pages 1-24, April.
    2. Alba Martínez-García & Eva María Trescastro-López & María Eugenia Galiana-Sánchez & Pamela Pereyra-Zamora, 2019. "Data Collection Instruments for Obesogenic Environments in Adults: A Scoping Review," IJERPH, MDPI, vol. 16(8), pages 1-27, April.
    3. Dwivedi, Abhishek & Weerawardena, Jay, 2018. "Conceptualizing and operationalizing the social entrepreneurship construct," Journal of Business Research, Elsevier, vol. 86(C), pages 32-40.
    4. John Forth & Alex Bryson, 2019. "Management practices and SME performance," Scottish Journal of Political Economy, Scottish Economic Society, vol. 66(4), pages 527-558, September.
    5. Badih Arnaout & Mark Esposito, 2018. "The value of communication in turbulent environments: how SMEs manage change successfully in unstable surroundings," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 34(4), pages 500-515.
    6. Oguzhan Ozturk, 2021. "Bibliometric review of resource dependence theory literature: an overview," Management Review Quarterly, Springer, vol. 71(3), pages 525-552, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Deborah Salvo & Eugen Resendiz & Ana Stefancic & Leopoldo J. Cabassa, 2023. "Examining Place-Based Neighborhood Factors in a Multisite Peer-Led Healthy Lifestyle Effectiveness Trial for People with Serious Mental Illness," IJERPH, MDPI, vol. 20(9), pages 1-25, April.
    2. Canestrino, Rossella & Ćwiklicki, Marek & Magliocca, Pierpaolo & Pawełek, Barbara, 2020. "Understanding social entrepreneurship: A cultural perspective in business research," Journal of Business Research, Elsevier, vol. 110(C), pages 132-143.
    3. Sikandar Ali Qalati & Dragana Ostic & Gu Shuibin & Fan Mingyue, 2022. "A mediated–moderated model for social media adoption and small and medium‐sized enterprise performance in emerging countries," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 846-861, April.
    4. Barbara Bradač Hojnik & Katja Crnogaj, 2020. "Social Impact, Innovations, and Market Activity of Social Enterprises: Comparison of European Countries," Sustainability, MDPI, vol. 12(5), pages 1-15, March.
    5. Qing Yin & Delu Wang & Yadong Wang, 2023. "Serial Mediation Model Linking Returnee Entrepreneurship Education and Green Returnee Entrepreneurial Behavior: An Analysis of Environmental Improvement," Sustainability, MDPI, vol. 15(19), pages 1-15, September.
    6. I Wayan Ruspendi Junaedi & I Wayan Damayana & Dermawan Waruwu & I Gusti Bagus Rai Utama, 2020. "Social Enterprises through Traditional Cooperation: Love, Joint Responsibility, Portfolio, and Wellbeing," Technium Social Sciences Journal, Technium Science, vol. 12(1), pages 333-346, October.
    7. Diana M. Hechavarría & Steven A. Brieger, 2022. "Practice rather than preach: cultural practices and female social entrepreneurship," Small Business Economics, Springer, vol. 58(2), pages 1131-1151, February.
    8. Abid Hussain & Muhammad Bilal & Sana Rashid, 2021. "An Empirical Investigation Of Information Quality And Usage Of Mobile Banking In Predicting Adaptive Performance: A Serial Mediation Model," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(1), pages 134-147, March.
    9. Puspasari, Novita & Herwiyanti, Eliada & Pinasti, Margani & Institute of Research, Asian, 2021. "Barking Up the Wrong Tree: SMEs' Perception of Tax using the ZMET Method," OSF Preprints 8f4kp, Center for Open Science.
    10. Anasuya K. Lingappa & Aditi Kamath & Asish Oommen Mathew, 2022. "Engineers and Social Responsibility: Influence of Social Work Experience, Hope and Empathic Concern on Social Entrepreneurship Intentions among Graduate Students," Social Sciences, MDPI, vol. 11(10), pages 1-18, September.
    11. Siebold, Nicole, 2021. "Reference points for business model innovation in social purpose organizations: A stakeholder perspective," Journal of Business Research, Elsevier, vol. 125(C), pages 710-719.
    12. Cheng, Colin C.J. & Shiu, Eric C., 2022. "A two-level, longitudinal investigation into the effects of employee social entrepreneurship orientation and top management team decisions on product innovation," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    13. Babelytė-Labanauskė Kristina, 2022. "Re-exploring Seminal Works on Resource-Based View and Resource Dependence Theory: The Case of Entrepreneurial Research Organization," Management of Organizations: Systematic Research, Sciendo, vol. 87(1), pages 21-42, June.
    14. Khursheed, Ambreen & Fatima, Maham & Mustafa, Faisal & Nawaz Lodhi, Rab & Akhtar, Ayesha, 2021. "An Empirical Analysis of the Factors Influencing Social Entrepreneurship: A Gendered Approach," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    15. Maha Shehadeh & Ahmad Almohtaseb & Jehad Aldehayyat & Ibrahim A. Abu-AlSondos, 2023. "Digital Transformation and Competitive Advantage in the Service Sector: A Moderated-Mediation Model," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    16. Said Yousef Dwikat & Darwina Arshad & Mohd Noor Mohd Shariff, 2022. "The Influence of Systematic Strategic Planning and Strategic Business Innovation on the Sustainable Performance of Manufacturing SMEs: The Case of Palestine," Sustainability, MDPI, vol. 14(20), pages 1-26, October.
    17. repec:thr:techub:10012:y:2020:i:1:p:333-346 is not listed on IDEAS
    18. Pradeep Kumar Hota, 2023. "Tracing the Intellectual Evolution of Social Entrepreneurship Research: Past Advances, Current Trends, and Future Directions," Journal of Business Ethics, Springer, vol. 182(3), pages 637-659, January.
    19. To, Chester K.M. & Guaita Martínez, José Manuel & Orero-Blat, Maria & Chau, K.P., 2020. "Predicting motivational outcomes in social entrepreneurship: Roles of entrepreneurial self-efficacy and situational fit," Journal of Business Research, Elsevier, vol. 121(C), pages 209-222.
    20. Chung, Doohee & Jung, Haejun & Lee, Yunjeong, 2022. "Investigating the relationship of high-tech entrepreneurship and innovation efficacy: The moderating role of absorptive capacity," Technovation, Elsevier, vol. 111(C).
    21. Robin C. Sickles & Kai Sun & Thomas P. Triebs, 2021. "The optimal use of management," Economic Inquiry, Western Economic Association International, vol. 59(3), pages 1346-1363, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijebaa:v:x:y:2022:i:3:p:156-173. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.