Influence of entrepreneurial motivation on micro and small enterprise graduation in eldoret town, Uasin Gishu County

Abstract

Micro and Small enterprises enormously contribute to the Kenyan economy through employment and income generation. In spite of this contribution, their performance in terms of graduation is little understood. The evidence supporting the view of micro and small enterprises as the engine of growth is limited. This study was based on Schein‟s model by Edgar Schein career Anchors was anticipated to shade light on the motivation on the graduation of MSEs. The main objective of the study was to assess the influence of entrepreneurial motivation on Micro and Small Enterprises (MSEs) graduation. The specific objectives were; to determine the relationship between the psychological perspective of the entrepreneur and enterprise graduation; to assess the influence of the internal entrepreneurial factors on enterprise graduation; to assess the effect of the contextual factors on enterprise graduation; and to examine the barriers to enterprise graduation. The study was conducted in Eldoret Municipality Central Business District (CBD) in Uasin Gishu County targeting micro and small enterprises licensed and registered by Eldoret Municipal Council. A sample size of 189 respondent was selected. A Stratified and simple random sampling techniques was used. Primary and secondary data was used to achieve the objectives of the study. Primary data was collected using questionnaires and secondary data was collected from Eldoret Municipal achieve. Data was analyzed using descriptive statistics and inferential statistics. The study findings indicated that; the psychological perspective of an entrepreneur and contextual entrepreneurial factors had no statistical relationship with graduation. While the internal entrepreneurial factors had a statistical relationship with enterprise graduation. The study concludes that entrepreneurers‟ perceptions on contextual entrepreneurial factors should be improved in order for them to graduate in the enterprise continuum. Secondly, MSEs owners should enhance their entrepreneurial competence.