Influence of Management factors on performance of Business operated by groups in Pumwani informal settlements in Nairobi county Kenya

Abstract

The purpose of this research was to determine the influence of management factors on performance of entrepreneurship groups of Pumwani informal settlements in Nairobi County. This study focused on four major objectives: to determine the influence of financial management on performance of entrepreneurship groups of Pumwani informal settlements in Nairobi County, to determine the influence of capacity building on performance of entrepreneurship groups of Pumwani informal settlements in Nairobi County, to determine the influence of monitoring and evaluation practices on performance of entrepreneurship groups of Pumwani informal settlements in Nairobi County and finally to determine the influence of stakeholder management on performance of entrepreneurship groups of Pumwani informal settlements in Nairobi County. This study was quantitative in nature and employed a descriptive survey research design. The target population was 980 members of the 50 registered self-help groups within Pumwani. The study used simple random sampling to select 130 members in total to whom the questionnaire was administered. The study used primary data collected using a 5 point Likert scale questionnaire. Validity of research instrument was established through the help of the Supervisor who is an expert in the field. The supervisor scrutinized the items for relevance in relation to the topic under study. A pilot test was conducted to test the reliability of the research instrument. The quantitative data was analyzed using descriptive statistics by applying the Statistical Package for Social Science (SPSS version 20). The results were presented in form of tables. Based on the study findings the study concluded that financial management influences performance of entrepreneurship groups to a great extent with a mean of 4.1 and a standard deviation of 0.9. Capacity building also influences performance of entrepreneurship groups to a great extent with a mean of 4.4 and a standard deviation of 0.7. Monitoring and evaluation also influences performance of entrepreneurship groups to a great extent with a mean of 3.9 and a standard deviation of 1.0. Finally the study also concluded that stakeholder management influences performance of entrepreneurship groups with a mean of 3.3 and a standard deviation of 1.1. In conclusion, the study found that all the independent variables of the study which are financial management, capacity building, monitoring and evaluation and stakeholders‟ management influences groups‟ performance. The study recommends that proper nurturing on newly established entrepreneurship groups is critical to facilitate attainment of their performance objectives. The leadership of entrepreneurship groups should encourage more of the community members to join functional entrepreneurship groups as they have proven to have a positive significance to the economic status of the members. The study suggests that further research should also be undertaken to determine the effect of regulation on economic performance of entrepreneurship groups. The study also suggests that a study seeking to determine the measures that have been taken in a bid to improve the performance of entrepreneurship groups should be undertaken.