Effect of entrepreneurial orientation on growth of small and medium size enterprises in Narok town.
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The main purpose of this study wasto establish the effectof entrepreneurial orientation ongrowth of small and medium enterprisesin Narok town. Specifically, the study soughtto establish the influence of innovativeness, entrepreneurial pro-activeness, and risk taking on growth of small and medium enterprises.This study is justified on the basis that even though the present body of literature has delved into relationship betweenentrepreneurialorientationand organizational growth, there is limited research on how it affectsgrowth of small and medium enterprises.The study adoptedSchumpeter’s innovation theory, resource-based theory, and theory of business strategy.Methodologically, the study adoptedcorrelationresearch design, where the study targets 1,390 SMEs operating within Narok town.The sample size for this study comprisedof 139 SMEs, which constitute of 10% of the target population.The study usedrandom sampling owing to the homogeneity of the units of study. Data werecollected by means of structured questionnaires.Statistical Packages for Social Sciences version 24 wasused to run both descriptive and inferential statistics.Descriptive statistics wereused to compute frequencies and to derive conclusions and generalizations regarding the population, while inferential statistics; multivariate linear regression analysis wasbeingused to determine the association between the outcome and predictor variables.Valid and reliability tests wereconducted andascertaineddata measures wereable to measure what they are supposed to measure (validity) and if data collection tools consistently measure phenomenon of interest.Data waspresented in form of figures and tables.Analysis of data established existence of a significant (p< .05) and positive relationship between predictor variables (innovativeness, entrepreneurial proactiveness, and risk-taking)on enterprise growth for small and medium enterprises. The study recommends that that SMEs should leverage technological innovation as a basis of enhancing business processes, internal efficiency, and infusing new products and services. Moreover, SMEs should continuously monitor and asses their past and present processes with a view to predicting future trends and patterns in relation to anticipated consumer needs and consumption patterns and even though risk taking an important approach to business growth, there is need to incorporate risk management strategies to mitigate the effect of risks involved in borrowing.