Relationship between Risk-Taking and Business Performance among Small and Medium Enterprises in Eldoret Town, Kenya (Published)
The measure of entrepreneurial activity in an organization is the level of creativity and innovation across all its operations. How intense the creative and innovative disposition is determined by the success of organizations as reflected in performance outcomes. The purpose of the study was to examine the relationship between entrepreneurial intensity and performance of small and medium enterprises in Eldoret town, Kenya. Informed by the study, this paper explores the influence of risk-taking on the performance of SMEs in Eldoret town. The study adopted an ex-post facto research design. It targeted all the SMEs in Eldoret town. Systematic sampling technique was adopted to select a sample of 100 SME owners/managers to be involved in the study. The collected data was analysed using both descriptive and inferential statistics. Descriptive statistics was presented in form of percentages, frequencies, pie charts and graphs. Pearson correlation was employed to test the hypotheses of the study. The study established that there is a strong positive correlation between risk-taking and business performance of SMEs in Eldoret town. Therefore, committing business resources to venture in uncertain and unfamiliar environments could result in increased returns and market share for the business.
Rwanda has for all intents and purposes a mixed economy. The Rwandan government envisions creating a middle-income, knowledge-based society with middle class of entrepreneurs as the moral fiber of development progression. Various scholars have argued that for enterprises to be competitive, they need to undergo corporate entrepreneurship. Whereas others have defined corporate entrepreneurship as a term used to describe entrepreneurial behaviour inside established mid-size and large organisation. For corporations to improve: Entrepreneurial intensity is required. Entrepreneurial intensity (EI) is considered to be of supreme substance for success of corporate enterprises. To help researchers and lecturers blend the growing body of knowledge, this paper investigates the EI principles of innovativeness, proactiveness, risk-taking, entrepreneurial management style and perceptions to whether have an impact on corporate entrepreneurship (CE) among enterprises in Rwanda. A mixed method approach using qualitative and quantitative approach was employed for testing the hypotheses. In-depth interviews with 156 top executives of well known enterprises in Rwanda were conducted. The interview findings indicated that CE was found to be lacking in diverse enterprises consequently several businesses have struggled to keep up profitability. Thus, the paper seeks to address this gap. Furthermore, the paper provides directions and suggestive thoughts for future research