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INFLUENCE OF ENTREPRENEURIAL COMPETENCIES ON THE GROWTH OF SMALL AND MICRO ENTERPRISES IN THE AGRICULTURAL INDUSTRY IN KIRINYAGA COUNTY, KENYA

Chomba S. J. - School of Entrepreneurship, Procurement and Management, Jomo Kenyatta University of Agriculture and Technology, Kenya

Dr. Nyang’au S. P. - Department of Entrepreneurship, Technology, Leadership and Management, Jomo Kenyatta University of Agriculture and Technology, Kenya


ABSTRACT

This study investigated the influence of entrepreneurial competencies on the growth of small and micro enterprises in the agricultural industry in Kenya. The study was carried out in Kirinyaga County. The study specifically investigated the influence of innovativeness, entrepreneurial leadership, risk-taking and networking on the growth of small and micro enterprises in the agricultural industry in Kirinyaga County. A survey was conducted on small and micro enterprises dealing in dairy, coffee and rice in the month of July 2019. The respondents were the managers of the selected SMEs and in case where the SME was owner managed then the entrepreneur was asked to respond to the survey questions. A sample of 352 SMEs was selected on the identified SME’s dealing in dairy, coffee and rice to provide the information required, data was collected by use of questionnaires. Once collected, data was analyzed using descriptive statistical methods and results presented in tables and graphs. The study revealed that innovativeness has significance and positive influence on small and micro enterprises growth which implies that an investment on innovation lead to a positive growth of SMEs. Regression model established that there existed a significant positive relationship between entrepreneur Leadership and SMEs growth. Further, the study established that risk management has a significance influence on growth of small and micro enterprises. The regression findings further indicated that there existed a significant relationship between entrepreneur networking and SMEs growth. The study recommends that SMEs through the management to embrace innovation competency as a means of enhancing their growth. Through introduction of new product lines and implementing new ideas, SMEs get to be more competitive thus promoting their performance. The SMEs should invest in new markets and encourage their employees to be more innovative as a way of enhancing performance and eventual growth. SMEs owners should enhance leadership competency which as per the study findings is a key aspect in firm survival and performance. The study further recommends that entrepreneurs should ensure that they embrace networking as a way of gaining competitive advantage and widening their customer base which results from marketing through the networks. The study was limited to four entrepreneurial competencies which included leadership competency, innovation competency, networking competency and risk-taking competency. There could be another study carried out on other entrepreneurial competencies such as opportunity spotting competency, managerial competency and creativity competency and how they affect growth of SMEs.


Full Length Research (PDF Format)