Entrepreneurial capacity development in enterprise perfomance: a case study of salon enterprises in Nandi County

Abstract

Performance of SMEs, in Kenya has been a concern both to the government and scholars owing to their immense contribution to the GDP hence to the economy. Most small and micro enterprises perform well, others average, still some performed poorly. Owing to this scenario, entrepreneurial capacity development is one of the factors that enhance performance. It is assumed that lack of entrepreneurial capacity leads to poor performance of enterprises. Aspects of entrepreneurial capacity development of SMEs, are discussed on how they can influence performance. One major issue of entrepreneurial capacity development is training. This study examined entrepreneurial capacity development in enterprise performance, a case study of salon enterprises in Nandi County. It sought to establish the influence entrepreneurial capacity development has on performance among salon operators. It sought; to determine the influence of training needs assessment on salon enterprise performance, to examine the relationship between training strategies and salon enterprise performance and to examine the relationship between training implementation and salon enterprise performance. The study employed a survey research design where a survey of salon operators in Nandi County was conducted. A Structured questionnaire was administered to 200 salon operators from Nandi County. Primary data obtained was analyzed quantitatively using the frequency distribution tables SPSS version 20 was utilized to process the data. Chi-square analysis was carried out to test the hypothesis at 0.05 level of significance. The hypothesis that there is a significance relationship between entrepreneurial capacity development and enterprise performance was supported by the research finding. The other findings are that entrepreneurs undertake training needs assessment and actually train themselves or their employees, secondly the entrepreneurs use strategies like on-the-job training, off-the-job training and apprenticeship even informal training is used and thirdly entrepreneurial capacity development contribute to better performance of salon enterprise especially developing entrepreneurial capacity especially on technical and managerial skills. This study recommends that training needs assessment should be undertaken, training strategies both formal and informal be utilized that is apprenticeship or on-the-job training to be strengthened. Finally, there should be a provision of adequate accredited colleges to develop entrepreneurial capacity of salon operators as entrepreneurial capacity development is found to positively influence performance.