Determinants of entrepreneurial performance in small scale enterprises in kenya: A case study of Mathira division, Nyeri district

Abstract

With an increasing level of unemployment In the country, the government has come to the realization that small scale enterprises cal). serve as "shock absorbers" to this problem. Past experience shows that even with the government assistance, there have been cases of failure in these enterprises. This forms the major stimulus of this study. The main objectives of the study are to determine, model and estimate the statistical significance of the factors that influence performance of small scale entrepreneurs specifically in Mathira division. The study found that business management, availability of inputs, capital-labour ratios and sex have a positive and significant effect on performance. Job training and innovative activities have a positive but insignificant effect on performance of the entrepreneurs. Tentative explanations are given for any contradictions found in this study. Policies recommended from the findings of the study include that emphasis should be laid business management practices, provision of inputs at reasonable costs and encouragement of females to venture into more risky but profitable businesses. Also in making policies, capital should be made more expensive than labour to ensure more labour-intensive businesses. Other policies recommended arise from other aspects of research and not directly from the model.