dc.description.abstract |
Despite the small and medium enterprise's contribution to the economy, their business
performance has not been impressive. They are experiencing various difficulties in
improving their financial performance, stagnating, and others failing within two years
of starting. Therefore, the study's primary purpose was to establish the effect of
entrepreneurial orientations, financial capital access, and business performance of small
and medium enterprises in Eldoret town, Uasin Gishu County. The study's specific
objectives were to examine the effect of innovativeness, risk-taking, pro-activeness,
competitive aggressiveness, and autonomy on the business performance of small and
medium enterprises. To determine the moderating effect of financial capital access on
the relationship between innovativeness, risk-taking, pro-activeness, competitive
aggressiveness, autonomy, and business performance of small and medium enterprises.
The study has been guided by discovery theory, Schumpeter's innovation theory, and
dynamic capabilities theory. The study has been carried out using an explanatory
research design. The target population for this study was 2053 owners/managers of
small and medium enterprises. The sample size for the survey was 335 managers of
small and medium enterprises. The study adopted stratified and simple random
sampling methods to select the owners/managers per sector. Primary data was collected
using questionnaires. The validity test has been carried out using factor analysis and
correlation, while the reliability test has been carried out using Cronbach's Alpha. The
collected data was analyzed using both descriptive and inferential statistics. Descriptive
statistics were frequency, mean, standard deviation, and percentage. The inferential
analysis was done through correlation and hierarchical moderating regression analysis.
The data analyzed has been presented in tables. The study findings revealed that
innovativeness positively and significantly affected business performance (β1=0.222,
p<0.05). Risk-taking positively and significantly affects business performance
(β2=0.166, p<0.05). Pro-activeness positively and significantly affected business
performance (β3=0.178, p<0.05). Competitive aggressiveness positively and
significantly affected business performance (β4=0.103, p<0.05). Autonomy positively
and significantly affected business performance (β5=0.144, p<0.05). Financial capital
access had an enhancing moderating effect on the relationship between innovativeness
and business performance (R2
change =0.010). The financial capital access had an
enhancing moderating effect on the relationship between risk-taking business
performance (R2
change=0.014). Financial capital access had an enhancing moderating
effect on the relationship between pro-activeness and business performance (R2
change
=0.008). Financial capital access had an enhancing moderating effect on the
relationship between competitive aggressiveness and business performance (R2
change
=0.009). Financial capital access has an enhancing moderating effect on the relationship
between autonomy and business performance (R2 change=0.014). The study concluded
that increased business innovation leads to increased productivity across various
business dimensions, including individuals, processes, and business models. Pro activeness builds self-motivation, leads to creative problem-solvers, and is eager to
seize chances. Risk-taking motivates entrepreneurs to find a strategy that works because
of the significant risk taken. Employees who engage in competitive aggressiveness can
better overcome anger towards a specific person. Autonomy boosts motivation and
enjoyment while reducing employee turnover. The study recommends that firms to
enhance entrepreneurial orientation to improve business performance. This proves that
entrepreneurial-orientated culture should enhance entrepreneurial behaviour within the
firm. |
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