Peter Waithaka Kariuki, Dr. Anne-Marie Wairimu Mungai


In Kenya, small and medium-sized enterprises (SMEs) generate 80% of new jobs, form a new middle class, and stimulate the demand for new goods and services. However, the performance of these firms has deteriorated over decades and recently during the COVID-19 pandemic, they were the most affected. Kenya National Bureau of Statistics (2016) reported the closure of 2.2 million SMEs in the five years ending in 2016 leading to increased focus on the reasons SMEs are not able to adapt to market conditions. The general objective of the study is to assess the effect of entrepreneurial orientation on the performance of small and medium size organizations in Nairobi city county, Kenya. Specifically, the study sought to find out the effect of Risk-taking ability on the Performance of Small and Medium Size Organizations in Nairobi city county, Kenya and to explore the influence of competitive aggressiveness on the Performance of Small and Medium Size Organizations in Nairobi city county, Kenya. This study adopted a descriptive research design. In this study the unit of analysis was Small and Medium Size Organizations in Nairobi City County while the unit of observation was 100 SME owners/managers. Since the population is infinite, purposive sampling of 100 SMEs were used. This research used a questionnaire to collect primary data. Ten questionnaires were piloted that represented 10% of the target population. The pilot group was selected from Kiambu County because they share similar characteristics with its neighbor, Nairobi County. The study collected quantitative data which was analysed using descriptive and inferential statistics using the Statistical Package for Social Sciences (SPSS) version 24. Multivariate linear regression was used to determine the relationship between the dependent and independent variables. The study results were presented through use of tables and figures. The study concludes that t risk taking ability has a significant effect on performance of small and medium size organizations in Nairobi city county, Kenya. The study also concludes that competitive aggressiveness has a significant effect on performance of small and medium size organizations in Nairobi city county, Kenya. From the findings, this study recommends that SME managers should give priority to risk taking ability and competitive aggressiveness.

Key words: risk-taking ability, competitive aggressiveness, Performance

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