Abstract:
The uptake of micro-insurance by MSEs has been very low over the years. The low microinsurance uptake could be influenced by various factors among them entrepreneurial orientation. There is dearth of literature that focuses on the role of entrepreneurial orientation on uptake of microinsurance among owner managers of MSEs. This study sought to establish the influence of entrepreneurial orientation on microinsurance uptake by MSEs in Kenya. Specifically, the study sought to: examine how risk taking, proactiveness, innovativeness, competitive aggressiveness influences microinsurance uptake by micro and small enterprises in Kenya; and establish the moderating effect of the regulatory framework on relationship between entrepreneurial orientation and microinsurance uptake by micro and small enterprises in Kenya. The study adopted descriptive and explanatory research designs. The target population was 297,340 MSEs in Nairobi County. The study utilized a sample of 400 MSEs. Stratified random sampling was used to select the sample from the population. A structured questionnaire was used to collect data from owner managers of MSEs. The questionnaire was pilot tested for reliability using Cronbach’s alpha while convergent validity was tested using Average Variance Extracted (AVE) and discriminant validity was tested using cross loading. The study utilised factor analysis, correlation analysis and multiple linear regression method to analyse the collected data. The study found that risk taking and proactiveness behaviour increases the likelihood of entrepreneurs of MSEs purchasing micro insurance policies while competitive aggressiveness negatively influences entrepreneurs of MSEs decision to purchase micro insurance policies. Innovative behaviour of entrepreneurs of MSEs does not influence uptake of micro insurance by MSEs in Kenya. Regulatory framework negatively influences entrepreneurs of MSEs decision to purchase micro insurance policies but does not moderate the relationship between entrepreneurial orientation and uptake of micro insurance. The study recommends that entrepreneurs who are risk averse could cushion themselves by purchasing micro insurance policies consequently enabling them achieve their firms’ objectives, government through various state owned enterprises that focuses on MSEs could start training programs that build entrepreneurs capacity and skills to be proactive in their businesses hence increasing uptake of micro insurance. Further, the study recommends that although entrepreneurs may not find it worthwhile to purchase micro insurance policies when the competition is very stiff, it is advisable for them to insure against other type of eventualities by purchasing micro insurance policies and government should review existing micro insurance policies with the aim of designing them in a way that they create conducive environment for entrepreneurs to purchase micro insurance policies.
