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

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.

The Influence of Entrepreneurial Orientation and Skills on the Performance of SMEs in the Food and Beverage Sector

“…Research by Setiadi (2021) also found that each individual's entrepreneurial skills can improve the business performance of coffee shops in Malang City. Likewise, research results from (Albanus et al, 2022) found a positive influence between entrepreneurial skills and the performance of SMEs in Nakuru City-Kenya. It is also supported by research conducted by (Mustapha et al, 2020), which found that high entrepreneurial ability can bring a business towards progress and success.…”

Investigation of Entrepreneurial Emotional Intelligence on Financial Performance of FIIRO Technology Adoptees in South West Geopolitical Zone, Nigeria

“…The results show a very weak relationship between entrepreneurial skills and business performance. Mutuku, Kiilu, Mathuku & Auka (2022) investigated the effect of entrepreneurial skills on the performance of Small and Medium Enterprises in Kenya. Data for this study were collected from a sample of 20 small and medium-sized enterprises using a correlational survey design.…”

Pilot Study: Determinants of Small and Medium Business Performance

“…There are many variables that influence the performance of small and medium enterprises, entrepreneurship, workforce skills, infrastructure, finance, leadership skills (Abebaw, Mulate & Nigussie, 2018), and innovation (Iqbal & Yuliandari, 2019) entrepreneurial characteristics (Indarto & Santoso, 2020), entrepreneurial orientation and market orientation (Septrizola, 2021), Entrepreneurial Orientation and skills (Zaato et al, 2020), entrepreneurial skills (Mutuku et al, 2022), entrepreneurial orientation and religiosity (Sefnedi & Yadewani, 2022), human resource skills and capabilities (Wijaya, Yadewani & Karim, 2022), quality of business strategy, ethical seller behavior, process innovation, entrepreneurial orientation perspective, business environment adaptability, and partial competitive advantage ( Asyhari, Pudjihastuti & Kurdaningsih, 2018) skills and experiences (Yadewani, 2023) knowledge and government policies (Yadewani et al, 2023a), innovation and technology (Yadewani et al, 2023b), According to Aliyu and Rosli (2014), trials are considered to be trials in which a small-scale study is conducted before the actual full-scale study. A pilot study was carried out with the goal of achieving numerous objectives.…”