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

Albanus Kioko Mutuku, Betty Nzula Kiilu, Philiph Mathuku, Daniel O. Auka
International Journal of Economics and Business Administration, Volume X, Issue 3, 156-173, 2022
DOI: 10.35808/ijeba/782


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.

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