Tag Archives: Small Business

Economic Transformation: Reliance to Small Businesses and Export Orientation (Published)

Uzbekistan as a low-middle-income country with a population of 30 million, has seen stable economic progress (with the growth of average 8 percent per year) since 2004 and extreme poverty has declined from 27 percent in 2000 to 15 percent in 2012. The government has set an ambitious goal for the country—to join the group of upper-middle-income countries by 2030. This study discusses the main challenges of the structural transformations that the economy will face to achieve this objective.

Keywords: Export, Growth, Small Business, Transformation, Uzbekistan, import

Influence of Entrepreneurial Networking on Small Enterprise Success: A Service Industry Perspective (Published)

The increasing use of networks for Small and Micro Enterprise has been reported as a factor of influents in development process of entrepreneurial activity. In Kenya Small and Micro enterprises account for over 70% of the enterprises. They are a source of livelihood of low income earners and also a major source of innovation in creating new products technologies and services.  Entrepreneurial networking includes the linkages and connectivity through which entrepreneurs obtain information resources, knowledge and social support about market opportunities. While network relationships have been recognized as indispensable for SMEs to the achievement of growth, a particular focus on entrepreneurial networks in the service industry has been limited. The main objective of the study was to examine the influence of firm’s entrepreneurial networking and its influence on the success of Small and Micro enterprises in Eldoret Town in Uasin Gishu County. The study utilized exploratory survey design. Specific objectives were: to examine the relationship between entrepreneurial networks and enterprise success, and to determine the relationship between entrepreneurial ties and enterprise success. Small and Micro business owners in the service industry were divided into a sample and a simple random technique was employed whereas sample of 240 SMEs in the service was drawn from a target population of 600 registered SMEs in the service sector, Eldoret Town, Uasin Gishu County. The study was guided by Relational Theory of Social Networks.  Data was sorted coded and analyzed using inferential statistics as: Pearson’s product moment correlation, Chi-Square methods and Analysis of variance (ANOVA) and multiple regressions. The study found out that, there was a strong positive relationship between networking [r=.683] and ties [r=.559] on entrepreneurial success. This indicated that an increase in networks and ties will lead to greator entrepreneurial success. It is hoped that the results of this study will assist to sharpen entrepreneurs’ skills and policy formulation and development of entrepreneurial networking.

Keywords: Entrepreneur, Entrepreneurial Networks, Micro business, Networking, Service Industry, Small Business, Social Capital and Resources.

RESOURCES AND PERFORMANCE OF SMALL AND MEDIUM SIZED ENTERPRISES IN THE RETAIL SERVICE SECTOR: MODERATING ROLE OF GENDER (Published)

Small and Medium businesses play a key role in economic growth. In 2006 there were 26.8 million small firms in USA. These firms generated over half of gross domestic product and employment in all sectors. They are also a major source of innovation in creating new products technologies and services. Despite availability of resources to start or operate men and women owned businesses experience disparity in performance especially in growth and size, with women registering lower performance compared to men. Research indicates that women owned small businesses continue to lag behind in terms of growth and size compared to men owned small businesses. The main objective of this study was to determine the relationship on finance resource use and performance of SMEs, assess the relationship of personal goals and performance of SMEs and finally establish how gender moderates the relationship between firm’s resources and performance of SMEs. The study adopted explanatory survey study design using a sample of 600 respondents drawn from a target population of 1200 SMEs in the service sector in Eldoret Municipal Council, Uasin Gishu County. Both women and men business owners was divided using simple random technique .the study employed quantitative methods of data collection. Data was sorted; coded and analyzed using SPSS packages Version 17 and analyzed using inferential statistics in order to assess the relationship between the variables in the model. From the study There was a strong positive relationship between the human capital resource education and performance [r=.232, n=525, p<.005], (Table4.22), indicating a positive correlation between human capital resource-education and performance of SMEs. Thus the more educated business owners are the higher their performance in SMEs.There was a strong positive correlation between the human capital resource experience and performance [r=.099, n=492, p<.001], indicating a positive correlation between human capital resource experience and performance of SMEs. The more experienced the business owners are the higher their performance in SMEs. The results indicated that there was significant effect of gender as a moderator on the relationship between resources and performance. This study contributes to body of knowledge, theory development and further research in performance of SMEs. The study concludes financial and human capital resources are important in the performances of both women and men headed firms. The study recommends the gender men and women should be encouraged to acquire the human and financial resources and set business goals and maximize the utilization of these resources adequately. The government of Kenya should integrate and mainstream gender issues on resources in their policies in order to be adopted by business owners.

Keywords: Men-owned Businesses and Women-owned Businesses, Small Business

TRUST AND GOODWILL AS DRIVERS OF SMALL ENTERPRISE SUCCESS: EVIDENCE FROM KENYAN SERVICE SECTOR INTELLECTUAL CAPITAL PERSPECTIVE (Published)

Entrepreneurial trust and goodwill play an important role in the success of Small and Micro enterprises. Wicks and Berman (2004) emphasized the important idea that trust is a costly governance mechanism, to be deployed only when necessary. They suggest that the greater the degree of interdependence between the parties to the exchange, the greater will be the need for trust. According to Yusuf (1995) the most critical factors contributing to business success consist of good management skills, access to financing, personal qualities, and satisfactory government support. Goodwill cannot be felt if it is an intangible asset which can be earned through a name or reputation of the organization (Claessens et al., 2000). Most entrepreneurial effective group and organization are those with the highest level of trust and norms. Goodwill from various stake holders like family, friends and other people contribute to entrepreneurial success. The main objective of the study was to examine Trust and goodwill as drivers of small enterprise success. The study utilized exploratory survey design. Specific objectives were: To assess the influence of trust on enterprise success and to examine the relationship of good will on enterprise success. Small and Micro business owners in the service industry were divided using simple random technique to obtain a sample size of 240 SMEs in the service sector drawn from a target population of 600 registered SMEs in the service sector, Eldoret Town, Uasin Gishu County. The study was guided by Relational Theory of Social Networks. The study employed both qualitative and quantitative methods of data collection. Data was sorted coded and analyzed using inferential statistics namely, Pearson’s product moment correlation, Chi-Square methods and Analysis of variance (ANOVA) and multiple regressions. The study found out that, there was a strong positive relationship between trust [r=.907], and good will [r=.833] on entrepreneurial success. This indicated that an increase in trust and goodwil will lead to greator entrepreneurial success.The study findings will contribute great to the academic debate.

Keywords: Business Networking, Micro business, Service Industry, Small Business, Trust and goodwill