Influence of Entrepreneur's Personal Characteristics in Entrepreneurial Networking on Growth of SMEs in Trans Nzoia County, Kenya

Abstract

The growth of SMEs increases their potential of creating jobs, poverty alleviation, creating enterprising culture and economic growth rate. However, the growth of SMEs has been a concern to many stakeholders worldwide including government, scholars, SME operators and employees. In Kenya, majority of SMEs collapse before their third anniversary and those that remain majority collapse after five years. Thus there is a need to address low growth and high failure rate among SMEs. Entrepreneurial networking is one strategy that may influence growth of SMEs. This study was not only informed by low growth among the SMEs in various sectors but also by mixed results and contentious debate on effects of entrepreneur's personal characteristics in entrepreneurial networking on growth of SMEs. The objective of the study was to determine the influence of entrepreneurs' personal characteristics in entrepreneurial networking on growth of SMEs. This study was guided by entrepreneurship theory and entrepreneurial networking theory. The study employed a mixed research design: quantitative and qualitative approaches. Stratified and simple sampling techniques were employed to obtain 363 SMEs from 2,354 SMEs registered by Trans Nzoia County in Kenya. The SMEs were distributed in the following subsectors of whole trade, retail trade, manufacturing services, restaurant and agriculture. The data collection instruments were questionnaires. The questionnaires were self-administered to SME operators in Trans Nzoia county Kenya. Statistical Package of Social Science (SPSS) was used to analyze data. Descriptive statistics was used to summarize data. Inferential statistic (regressions) was employed in analysis. The study revealed that entrepreneurs' characteristics (entrepreneurial orientation, education, age and networking skills)in entrepreneurial networking had positive significant influence on growth of SMEs. The study recommends entrepreneurs should embrace entrepreneurial orientation elements in networking to enhance growth of SMEs.