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ENTREPRENEURIAL FACTORS AFFECTING PERFORMANCE OF MOTOR REPAIR FIRMS IN NAIROBI INDUSTRIAL AREA: A CASE OF MEMBERS OF THE KENYA MOTOR VEHICLE REPAIRERS ASSOCIATION (KEMRA)

Joseph Mbaabu Inoti - Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya

Lydia Kwamboka Mbura - Jomo Kenyatta University of Agriculture and Technology, Kenya


ABSTRACT

The motor industry is a major industrial and economic force worldwide. In Kenya the industry remains a strong influence and of great importance. The industry provides jobs with good benefits and has linkage with supplier industries which gives it an important role in economic development. The general objective of this study will be to determine the factors affecting performance of motor vehicles repair firms focusing on firms that are members of the Kenya Motor Vehicles Repairers Association (KEMRA). The Kenyan motor vehicle industry (MVI) is one of the most prolific MSEs establishment in Kenya. When micro and informal firms are counted, the employment share of MSEs in developing countries rises to an estimated 90% of all workers. With such a global contribution, MSEs performances are expected to be high. Despite efforts from governments to improve MSEs, problems still face potential young entrepreneurs with recent statistics showing that three out of five MSEs in global economy fail within the first few years of operation The specific objectives of this study include establishing the effect of entrepreneurial marketing strategies on performance, to assess the effect of business financing strategies on performance, to determine the effect of entrepreneurial management skills and competences on performance and to examine the effect of innovativeness on performance of the members of the Kenya Motor Vehicles Repairers Association in Nairobi’s industrial area. This study adopted a descriptive research design combining both qualitative and quantitative research strategies. The target population were the member firms of KEMRA. A sample size of 70 firms out of a total frame of 85 firms was selected. The research focused on primary data that was collected from questionnaires distributed to the target firms.  The qualitative data collected was subjected to content analysis. On the other hand the researcher used descriptive and inferential statistics to analyse the quantitative data. The analysed data was presented using statistical and graphical techniques. The study found that overall, entrepreneurial management and competencies had the greatest effect on the performance of motor vehicles’ repair firms, followed by entrepreneurial marketing strategies, then business financing while innovativeness had the least effect to the performance of motor vehicles’ repair firms. The study established that marketing financing has a great effect on performance of motor vehicles repairers. With regard to business financing, the study established that business financing has a greater effect on performance of motor vehicles repairers. Based on the findings obtained, the study concludes that marketing financing has a greater effect on performance of motor vehicles repairers. Further, the study concludes that the effect of the organization using credit from financial institutions is greater. This study recommends that this strategy be intensified in areas with low market accessibility through offering more training to the workers in such areas. With ample entrepreneurial skills, these workers will take advantage of the placement strategy maximizing the opportunity to improve the general performance of Motor vehicles repairers in Industrial Area. Therefore, this study recommends that the members be offered more freedom to ensure that they utilize their creativity in most of the duties.


Full Length Research (PDF Format)