ENTREPRENEURIAL ORIENTATION AND ORGANIZATIONAL PERFORMANCE FOR MICRO AND SMALL ENTERPRISES IN ELDORET TOWN, KENYA

Kenneth Kipngeno Cheruiyot, Dr. Robert Mang’ana

Abstract


The growth of micro and small businesses is essential for the social, political, and economic development pillars in the least-developed countries. In Kenya, particularly in the Jua Kali sector, they play a primary role in reducing poverty, improving income distribution, and creating employment opportunities. Statistics reveal that most small businesses do not survive beyond their first year. While their societal importance cannot be denied, the fact that the vast majority of them are at risk of failure is disheartening. This study focuses on Micro and Small Enterprises (MSEs) in Eldoret, Kenya, with the primary goal of determining whether and to what extent a company's entrepreneurial orientation affects its organizational performance. The study employed a descriptive research approach to gain a deeper understanding of the subject. The target population consisted of Eldoret Town and its surrounding areas, which included 22,450 small traders registered with the County Government of Uasin Gishu Ministry of Trade. The study surveyed 393 individuals using a stratified random sampling technique. Data were collected through a questionnaire for primary data and a secondary data collection template. Data analysis was conducted using SPSS version 24, involving descriptive statistics and inferential statistics, including regression analysis. The results revealed a favorable and significant association between entrepreneurial orientations and the organizational performance of MSEs in Eldoret, Kenya. Based on the study's findings, it is recommended that MSEs adopt entrepreneurial orientation strategies aligned with the business environment to enhance performance.

Keywords; Entrepreneurial Orientation, Organizational Performance, Micro and Small Enterprises


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