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INFLUENCE OF ENTREPRENEURIAL LEADERSHIP ON PERFORMANCE OF TOP 100 SMALL AND MEDIUM ENTERPRISES IN KENYA

 

 

Mercy Gichuki

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya

Corresponding Author email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

Dr. Kepha Ombui

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya

 

 

CITATION: Gichuki, M., & Ombui, K. (2018) Influence of Entrepreneurial Leadership on Performance of Top 100 Small and Medium Enterprises in Kenya. International Journal of Arts and Entrepreneurship. Vol. 7 (4) pp 40 – 55.

 

ABSTRACT

 

Close to half a million small enterprises in Kenya die annually as the business environment in the country gets bumpy. A significant 46 per cent MSMEs collapse in their first year of establishment in Kenya. Scholars have argued that leadership plays a significant role on performance of organizations. This study therefore sought to establish the leadership characteristics of SMEs in Kenya and then link it to performance. The study adopted descriptive survey design on top 100 SMEs in Kenya. A simple and systematic sampling was used to select 84 SMEs. Questionnaires were used to collect data which was analyzed through correlation and regression methods. The study findings indicated a positive and significant effect employee motivation, mentorship, coaching and opportunity seeking on performance of SMEs. The study also recommended that SMEs in Kenya should aim to improve on their mentorship programme involving employees’ motivation practices like the organization giving employees more of a say in how they do their job, the organization employees being more motivated when they know they’re working towards something, organization grooming young employees to enable them move to better opportunities and the organization increasing the incentives as they are always motivation boosters. The study further recommends that before the government gives out the youth enterprise funds to SMEs run by youth, they should have attended an entrepreneurial leadership program and acquires a certificate of completion.

 

Key Words: Employee Motivation, Mentorship, Coaching, Opportunity seeking, Performance, Small and Medium Enterprises


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