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Naftaline Achieng Oraya - Master of Business Administration, Kenyatta University, Kenya

Samuel Maina (PhD) - School of Business, Kenyatta University, Kenya


MSEs performance is observed as the long term well-being and strength of the enterprise relative to its competitors. When sufficient performance lacks, survival of MSEs in competitive business environment will be impossible. Whereas, the contribution of small enterprises in development is significant, there are several challenges that are faced by MSEs that limits their development and survival. In developing countries the failure rate of small businesses is much higher. The main purpose of the study was to establish the effects of entrepreneurial competencies on performance of MSEs in Machakos County, Kenya. Specifically, the study sought to examine the effects of management skills, risk taking, creativity and opportunity seeking on performance of MSEs in Machakos County, Kenya. The study will be anchored on trait entreprenurship theory and schumpeter’s theory. Descriptive survey design was adopted. Managers of MSEs were targeted; therefore, the target population was5,624 respondents. The study selected a sample of 373 respondents. To obtain data questionnaires were employed. Data collected included primary data which was analyzed using frequencies, percentages, mean scores and standard deviations. Inferential statistics and in particular pearson correlation and regression analysis was also used. SPSS software was used for the computations. Tables and figures were used in presentation of results. The study computed correlation analysis to test the association of the study variables and the outcomes were presented in tables. The study found that management skills have positive association with organizational performance of MSEs; risk taking has positive link with organizational performance of MSEs; creativity has positive, significant link with organizational performance of MSEs and opportunity seeking had a positive link with organizational performance of SMEs. The study therefore recommends managers of MSEs in Machakos County to make an effort to increase their skills, both technical and interpersonal. This can be achieved by enrolling in short entrepreneurial courses that would help them to enhance their skills. Entrepreneurs should conduct in-depth research before taking risks i.e. taking calculated risks. This would allow them to identify whether the risk is worth taking; it is important to ensure that the risk is manageable. They should embrace technology because it is through technology that creativity can be improved. It is also important for MSEs to seek new opportunities through creation of new products, venturing into new markets and being innovative. This means they should embrace change.

Full Length Research (PDF Format)