Influence of Entrepreneurial Determinants on Small and Medium Enterprises Survival in Kakamega County Kenya

Abstract

This study assessed entrepreneurial determinants influencing small and medium enterprises survival in Kakamega county, Kenya; The study was guided by the following research objectives: To determine the influence of entrepreneurial skills on small and medium enterprises survival in Kakamega county, Kenya; to identify the influence of entrepreneurial competencies on small and medium enterprises survival in Kakamega county, Kenya; to assess the influence of access to entrepreneurial finance on small and medium enterprises survival in Kakamega county, Kenya; to evaluate the influence of technological innovation on small and medium enterprises survival in Kakamega county, Kenya. Both primary and secondary data were used by the study. The study target population comprised of 1,270 SMEs that had been in operation for a period of five years and above. The sample for the study consisted of 127 SMEs in Kakamega County. Data were analyzed using descriptive statistics, correlation analysis and regression analysis using SPSS version 20. The study used a multiple regression model to establish the relationship between dependent and independent variables. The study findings indicated that there is a positive and statistically significant relationship between SMEs survival (dependent variable) and Entrepreneurial Skills, Entrepreneurial Competencies, Access to Entrepreneurial Finance and Technological innovation (independent variables). The study recommended the need for the government as a policy setting organ to come up with conducive regulatory, trade, labour market, regional development, social and gender policies that suit the needs of aspiring and existing SMEs in order to influence entrepreneurial activities in the country and facilitate the survival of SMEs since SMEs are known to constitute larger percentage of economic activities. The SME owners should develop staff policies to facilitate the supply of qualified staff to support innovation in SMEs. Grants should be provided to business entrepreneurs on a competitive basis to undertake creative and innovative projects. Owners and managers should establish enterprise-oriented technology transfer units which are familiar with specific SMEs.