Entrepreneurial Networking and Growth of Small and Medium Enterprises in Kenya

Abstract

The growth of Small and Medium Enterprises (SMEs) increase their potential of performing social and economic functions. However, Small and Medium Enterprises in Kenya face low growth and high failure rates. The study attempted to answer the general objective of the study to determine the influence of entrepreneurial networking on growth of small and medium enterprises in Kenya. The study was guided by five specific objectives: to determine the influence of entrepreneur’s personal characteristics in entrepreneurial networking on growth of SMEs in Kenya, to evaluate influence of SMEs characteristics in entrepreneurial networking on growth of SMEs in Kenya, to investigate the influence of entrepreneurial networking structural dimensions on growth of SMEs in Kenya, to examine the influence of entrepreneurial networking resources on growth of SMEs in Kenya and to assess the influence of entrepreneurial networking relations on growth of SMEs in Kenya. This study was guided by entrepreneurial networking and entrepreneurship theories. The study employed a mixed research design to examine influence of entrepreneurial networking on growth of Small and Medium Enterprises. Stratified and simple sampling techniques were employed to obtain 363 SMEs from 2,354 SMEs registered by Trans Nzoia County in Kenya. The SMEs were distributed in the subsectors of wholesale trade, retail trade, manufacturing services, restaurant and agriculture. The primary data was collected through questionnaires that were dropped and picked later from SME operators. Statistical Package of Social Science (SPSS) was used to analyze data. Descriptive statistics was used to summarize data and inferential statistic (regressions) was employed in analysis to test hypotheses. The study used a multiple regression model to establish relationship between independent and dependent variables. Entrepreneurial networking was found to have positive significant influence on growth of Small and Medium Enterprises in Kenya. The analysis of individual hypothesis revealed that entrepreneur’s personal characteristics, entrepreneurial networking resources and entrepreneurial networking relations had positive significant influence on growth of Small and Medium Enterprises, while SMEs characteristics and entrepreneurial networking structural dimensions had insignificant influence on growth of Small and Medium Enterprises. The study recommends that the government as a policy setting organ to come up with conducive regulatory policies that encourage Small and Medium Enterprise entrepreneurs to participate in entrepreneurial networking to address some of the challenges that inhibit growth of enterprises. The study also recommends that SME entrepreneurs should configure valuable entrepreneurial networking to access resources and information that enhance growth of enterprises.