Factors Influencing Entrepreneurial Success in Sub-Saharan Africa: A Case Study of Micro, Small and Medium Enterprises in Kenya

Abstract

Micro, small and medium enterprises are crucial to Kenya's economy because they generate revenue, create jobs, distribute income, develop technological capabilities and disseminate resources. Despite these efforts, MSMEs continue to fail or stagnate. For the past five years, the performance of MSMEs has deteriorated. This study examined factors influencing entrepreneurial success in sub-Saharan Africa: a case study of MSMEs in Kenya. This study's objectives are to:

• Assess the influence of financial literacy on the entrepreneurial success of MSMEs in Kenya,


• Investigate the influence of entrepreneurial training on the entrepreneurial success of MSMEs in Kenya,


• Evaluate the influence of financial access on the entrepreneurial success of MSMEs in Kenya,


• Determine the influence of technology adoption on the entrepreneurial success of MSMEs in Kenya and


• Investigate the combined influence of financial literacy, entrepreneurial training, financial access and technology adoption on the entrepreneurial success of MSMEs in Kenya.

This study was guided by the entrepreneurial competency theory and the resource-based theory. The study employed the pragmatism paradigm. A descriptive research design was utilized. The target population of the study was 1,502,907 MSMEs registered in Kenya. The study's sample size was 320. Data were gathered through mixed methods. SPSS was utilized to conduct correlation and regression analyses on the collected data. Descriptive analysis was performed to examine the characteristics of the data. Inferential statistics were also employed. Regression analysis was conducted to assess the combined impact of the variables. The qualitative data collected were carefully organized into themes for analysis. Findings showed that financial literacy, entrepreneurial training, financial access and technology adoption significantly affect the entrepreneurial success of MSMEs in Kenya. Training would enhance business owners understanding of business dynamics. Support in technology adoption would also aid in business success. The government should be pragmatic in support of the success of MSMEs. Business licensing, taxation, levies and regulations should be MSME-friendly. MSMEs require support in terms of capital injection, financial literacy, entrepreneurial training, financial access and technology adoption. A multisectoral approach to support MSMEs is proposed to enhance success.

Entrepreneurial success, micro, small and medium enterprises, financial literacy, entrepreneurial training, financial access and technology adoption