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ENTREPRENEURIAL ORIENTATION AND SMALL AND MEDIUM ENTERPRISES GROWTH: EXAMINING INNOVATIVENESS DIMENSION


 

Isaac Ruto Katialem
Kabarak University
Kenya
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Dr. Stella Muhanji
Kabarak University
Kenya
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Prof. Robert Otuya
University of Eldoret
Kenya
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CITATION: Katialem, I, R., Muhanji, S., Otuya, R. (2018). Entrepreneurial Orientation And Small And Medium Enterprises Growth: Examining Innovativeness Dimension. International Journal of Arts and Entrepreneurship. Vol. 7 (12) pp 1 – 12.

 

ABSTRACT

Entrepreneurial orientation has generally been widely recognized as an imperative factor in enhancing the growth and profitability of a firm. Small and medium enterprises (SMEs) in Kenya play a pivotal role in employment, industrial transformation, stimulation of innovation, and poverty reduction. The study’s main objective was to examine the effect of innovativeness in the growth of SMEs in the manufacturing sector in Kenya. This study utilized descriptive cross-sectional design whereby data was collected using the survey method. Stratified random sampling was used to collect primary data from 265 SMEs in the manufacturing sector from a population of 853 SMEs registered with Kenya Association of Manufacturers (KAM) in Nairobi County, Kenya. Data was collected by use of a self-administered questionnaire and analysed by statistical computations of means, percentages, and correlation and regression analysis using SPSS Version 21. Inferential statistics was used in testing hypotheses of this study. The empirical findings demonstrate a statistically significant and positive relationship between innovativeness and growth of SMEs. Evidence from this research supports the conclusion that presence of innovativeness in a firm is quintessential in enhancing its growth.

 

Key words: Small and medium enterprises, entrepreneurial orientation, growth, innovativeness.

 

 

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