Influence of Entrepreneurial Determinants on the Performance of Social Enterprises in Nairobi City County, Kenya

Abstract

The purpose of this research was to assess the influence of entrepreneurial determinants on the performance of social enterprises in Nairobi City County. The main objective of this study was to evaluate the influence of entrepreneurial determinants, social capital, social innovation, and entrepreneurial training on performance of social enterprises in Nairobi County. The study evaluated the independent variable influence of social capital, social innovation and entrepreneurial training on the dependent variable performance of social enterprises. The study was guided by cross -sectional research design with a a mix of qualitative and quantitative analysis. The target population comprises of 300 registered social enterprises in Nairobi County. A simple random sampling technique was used to draw a sample of 107 registered social enterprises in Nairobi City County and purposive sampling for the Management representatives for the selected Social Enterprises. A self-administered questionnaire was used as the main data collection instruments. A pilot study was conducted to test validity and reliability of thequestionnaire. Data was analysed by use of both descriptive and inferential statistics. On multiple regression analysis the R2 value was 45.2% which explained the combined effect of independent variables on the dependent variable. Regression coefficient,Pearson’s product moment correlation and Chi-square were used to test for significant associations between independent and dependent variables. The study found out that social capital, social innovation and entrepreneurial training has a positive influence on the performance of social enterprises. The study concludes that most of the social entrepreneurs utilized networks, trust, reciprocity, collaborations & partnerships to a large extent as a means for social value creation making social capital significance on the social enterprise performance. Entrepreneurial training and education largely influences how the enterprises achieve the social mission. Social innovations is instrumental when applied through modern organisational models and processes as a driver for scaling performance and achieving more sustainable outcomes.The studyxxiv found that there are many unaccounted for or unregistered social enterprises actively engaging in social value creation necessitating a fresh mapping and consultative investigation on their contribution to the economy of the country. Social entrepreneurs need to apply social innovation in order to grow their social enterprises and create sustainable solutions, better business models and also adopt social capital as a reliable means to enhance capacity and resource acquisition. Entrepreneurial training programmes should also be reviewed to address the needs of social entrepreneurs. The government should create an enabling environment through policy development with a framework for promoting and guiding the social entrepreneurship sector in Kenya.