ENTREPRENEURIAL BEHAVIOR AND GROWTH OF MICRO AND SMALL FOOD MANUFACTURING ENTERPRISES IN NAIROBI CITY COUNTY, KENYA
Keywords:
Entrepreneurial Behavior, Growth of Micro And Small Food Manufacturing Enterprises, Risk Taking Propensity, Entrepreneurial ExperienceAbstract
Micro and Small Medium Enterprises sector provides enormous opportunity for the socio-economic transformation of Kenya’s economy. It also provides opportunities for absorbing low-skill and economically excluded individuals of the labor force including youth, women, persons with disabilities and those with low levels of education. The majority of these MSMEs operate in the agribusiness, manufacturing, trade and services. Micro, small, and medium-sized enterprises (MSMEs) are the economic backbone in Kenya comprising the majority (98%) of all business entities, registered and nonregistered, in the country. The purpose of the research was to establish the relationship of entrepreneurial behavior (risk taking and entrepreneurs experience) and the growth of MSFMEs. The appropriate design employed for the study was descriptive research design. The target study population was Nairobi City county-based entrepreneurs. Growth refers to the process of expanding and developing a business over time, it involves increasing revenue, expanding the customer base, entering new markets, developing new products or services, and hiring additional employees. This study examined the role of behavior in addressing entrepreneurial growth and sustainability challenges amongst micro and small enterprises in Nairobi City County using small food manufacturing firms as a case study. The objectives was to examine the relationship between entrepreneurial behavior and the growth of micro and small food manufacturing enterprises in Nairobi City County. The theories that supported the study included risk propensity theory and experiential learning theory. The study adopted descriptive research design, utilizing a questionnaire as the primary data collection instrument. The sample size was 396 micro and small food manufacturing firms in Nairobi City County that is the unit of analysis, a total of 298 questionnaires were filled and returned representing an overall successful response rate of 75%. The unit of observation included owners, managers, key decision makers and firm level data. Data collection was done by administration of closed and open-ended questionnaires. The collected data was analyzed using descriptive statistics i.e. the mean, percentage, and frequencies. Statistical Package for Social Sciences was used to aid in the analysis which was used to derive conclusions. Additionally, multiple regression analysis was used to examine the relationship between entrepreneurial behavior and enterprise growth. Correlation results revealed that entrepreneurial behavior influence growth of MSFMEs. Over half (54%) agreed that lessons from past market disruptions enhanced business resilience, while 46% strongly agreed. The results indicated there was a positive and significant relationship between entrepreneur’ risk taking propensity, entrepreneurial experience and growth.
Key Words: Entrepreneurial Behavior, Growth of Micro And Small Food Manufacturing Enterprises, Risk Taking Propensity, Entrepreneurial Experience
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