Abstract:
Performance of Micro Small and Medium Enterprises (MSMEs) immensely
contributes to the economic development of a country and is also a critical source of
employment to the populace. The significance of MSMEs in Kenya has attracted
various studies that have aimed at ascertaining appropriate factors that necessitate
their performance and survivability. However, the continued poor performance and
subsequent closure of MSMEs shortly after being set up, called for further studies.
This study sought to find out how entrepreneurial skills among youths entrepreneurs
influenced performance of MSMEs in Matisi Sub-location, Trans-Nzoia County,
Kenya. This research was guided by three objectives; to establish how technical skills
among youth entrepreneurs influences performance of MSMEs in Matisi Sub-
location, Trans-Nzoia County, Kenya, to determine how innovation skills among
youth entrepreneurs influences performance of MSMEs in Matisi Sub-location, Trans-
Nzoia County, Kenya and to assess how management skills among youth
entrepreneurs influences performance of MSMEs in Matisi Sub-location, Trans-Nzoia
County, Kenya. This study was underpinned by theories; Resource Based View and
Balanced Score Card. Data was collected through self administered questionnaires.
The study adopted explanatory research designs that sampled 293 MSMEs from the
target population of 1322 MSMEs. Stratified proportionate random sampling was
utilized. Collected data was analyzed descriptively (mean, percentage, standard
deviation, kurtosis, skewness) and inferentially (Pearson Correlation and Multiple
linear regression model) using SPSS application, version 23.Pearson Correlation
analysis was used to test the linear relationship between entrepreneurial skills and
performance of MSMEs while multiple linear regression analysis was used to test
research hypotheses. The research results indicated that Technical skills had β=0.218
and P-value=0.004, Innovation skills had β=0.303 and p-value=0.000 while
Management skills had β=0.472 and p-value=0.000.Thus the study concluded that
entrepreneurial skills have positive and significant relationship to performance of
MSMEs. The study recommends that entrepreneurs ought to acquire and continuously
update their technical skills. They should also continue to be innovative to remain
relevant in the ever changing market. They should not assume managerial roles more
at the expense of remaining entrepreneurs.
