Entrepreneurial skills and performance of micro, small and medium enterprises: a case of youth entrepreneurs in Matisi Sub-Location, Trans-Nzoia County, Kenya.

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.