Entrepreneurial Orientation and Performance of Micro-Enterprises

Abstract

Performance of micro-enterprises has been linked to entrepreneurial orientation (EO) none-the-less literature holds that this link only explains 5.8% of performance leaving 94.2% unaccounted for. The study purpose was to determine the relationship between entrepreneurial orientation and firm performance. The Study employed correlational design. The target population comprised 5700 registered micro-enterprises in Kericho County. Proportionate stratified random sampling method determined the sample size of 373 owner/managers. Data was collected using structured questionnaires. Data was analyzed using regression analysis. The findings indicated that EO has an influence on performance (β=.338, p=.000) and accounts for 11.4%. of this relationship among micro-enterprises and concluded that micro-entrepreneurs should consider entrepreneurial orientation to enhance performance. The study outcome provides information for entrepreneurship policy development and contributes to existing literature on entrepreneurial orientation and firm performance by introducing marketing communication as a mediator in this relationship hence beneficial to micro-enterprises in improving their performance.