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.
