ENTREPRENEURIAL ELEMENTS AND PERFORMANCE OF SMALL AND MEDIUM CONSTRUCTION ENTERPRISES IN KIAMBU COUNTY, KENYA

John Ayienda Mbaka, Dr. Susan Naikuru, Dr. Peter Ngatia

Abstract


Performance encompasses all organizational procedures, processes, and human elements, with entrepreneurship playing a significant role in enhancing it. This study investigated the performance of small and medium-sized construction enterprises (SMCEs) in relation to various entrepreneurial factors. The key objectives were to evaluate the influence of entrepreneurial experience, and risk-taking propensities on the performance of these businesses. The study was guided by several theoretical frameworks, including Competency Theory Risk Propensity, Knight’s Theory of Risk. A descriptive research design was adopted, and questionnaires were used as the primary data collection tool. The target population consisted of 280 construction firms in Kiambu County, with managers, site engineers, and contractors serving as the units of observation. Respondents were selected through simple random sampling. SPSS version 28 was used for analyzing data and presented through frequencies, descriptive statistics, and inferential statistics to draw conclusions. Multiple regression analysis was used to examine the link between firm performance and entrepreneurial variables. The results from the correlation analysis showed a strong impact. These entrepreneurial factors significantly influence the success of Small and Medium Construction Enterprises (SMCEs). Specifically, a strong and significant positive relationship was identified between entrepreneurial experience, risk-taking behavior, and overall business performance. Based on the results, the study recommends comprehensive training and coaching for entrepreneurs in areas such as business vision, goal setting, value addition, market expansion, risk management, and strategic decision-making. Additionally, further research is recommended to explore other entrepreneurial factors influencing the performance of SMCEs.

Key Words: Entrepreneurial Elements, Small and Medium-Sized Construction Enterprises, Entrepreneurial Experience, Risk-Taking Propensities, Performance 


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