Entrepreneurial Management and Growth of Micro and Small Furniture Manufacturing Enterprises in Kenya

Abstract

Micro and Small Enterprises (MSEs) are an important segment of Kenya’s economy. The enterprises contribute about 70% to the country’s Gross Domestic Product (GDP) and over 80% of the country’s employment opportunities. Therefore, this study sought to establish the influence of strategic orientation, resource orientation, reward philosophy and entrepreneurial culture on growth of MSEs in the furniture manufacturing enterprises in Kenya. The research design adopted in this study was the mixed method. The target population of the study was the 10,345 owner-managers of furniture manufacturing MSEs in Kenya. A sample of 393 owner-managers of furniture businesses in Nairobi were selected using stratified random sampling. Questionnaires were used as data collection tools. The researcher administered the questionnaires personally and also employed drop and pick later method in cases where it was not possible for respondents to complete the questionnaires the same day. Pilot testing of the research instrument was undertaken to ascertain reliability and validity. The study generated both qualitative and quantitative data. The study used correlation analysis to establish the degree of association between the independent and dependent variables. Multiple linear regression model was also used to establish the relationship between dependent and independent variables. The study established that, all the predictor variables; strategic orientation, resource orientation, reward philosophy and entrepreneurial culture influenced growth of micro and small furniture manufacturing enterprises. Entrepreneurial network as a moderating variable was portrayed to play a critical role in enhancing the relationship between strategic orientation, resource orientation, reward philosophy and entrepreneurial culture and growth of micro and small furniture manufacturing enterprises in Kenya. The key recommendations are that entrepreneurs should be given adequate access to credit in order to realize growth in their businesses. Policies regarding training and research and development (R&D) should be put in place in order to help the entrepreneurs innovate and be successful in their businesses. The main limitation of the study was the unwillingness of some respondents to complete the questionnaires. However, this was mitigated by assuring the respondents that utmost confidentiality was guaranteed. The study reached a conclusion that there was a significant positive relationship between strategic orientation, resource orientation, reward philosophy, networking and growth while entrepreneurial culture had a significant negative association with the growth of the micro and small furniture manufacturing enterprises. The study recommends that the government should improve Resource allocation to MSMES in furniture manufacturing enterprises in Kenya by allocating funds and initiating training in entrepreneurial management skills for them to grow from their current status.