Entrepreneurial Orientation Dimensions and the Growth of Small and Medium Enterprises in Kenya

Abstract

Entrepreneurial orientation is a process that entails a continuous process of decision making and activities or practices that lead to new venture creation. SMEs are important driving factors of economic growth, innovation and also a source of employment. Despite the many benefits of SMEs in our country, SMEs are still faced with many challenges which slow their growth with statistics showing that about 60% of SMEs die in the early stage and only a few grow to become large enterprises. The study examined entrepreneurial orientation dimensions adopted by SMEs and their role to sustainability of the growth of small and medium enterprises in Embu, Kenya. The study was based on the traits model theory. Descriptive research design was adopted for the study and a target population of 95 registered SMEs operating within Embu region was used. Stratified random sampling was adopted for sampling and a sample size of 58 SMEs was used. Primary data was collected through administering of questionnaire to the respondents while secondary data was sourced from journals, libraries, e-books and website. Data was analyzed using the SPSS software and regression and correlation analysis was used to make decisions and the final report. Growth of SMEs was accessed using the value of sales. The results of this study revealed that risk taking as a positive significance to the growth of small and medium enterprise in Embu County. The data had a p value of less than 0.05. The study recommends that entrepreneurs should also find an expert who will guide them as they plan to embark on any risky project to avoid unnecessary losses. Managers also should be willing to take advantage of any viable business opportunity in the market.