Risk-taking, Leadership, Innovation and Networking as Entrepreneurial Competencies of Growth of Micro and Small Enterprises in Nairobi City County in Kenya

Abstract

Micro and small enterprises play a crucial role in the economies of various nations around the world. However, they are constantly threatened by failure and the vast majority do not grow into large corporations. As a result, entrepreneurs are constantly challenged to use assets of skills to succeed in their entrepreneurs' ventures. The research sought to examine the effect of Risk-Taking, Leadership, Innovation and Networking on the growth of micro and Small Enterprises in Nairobi City County. Profit maximization theory, Schumpeter Innovation theory of profit, and Social networking theory served as the foundation for the study. The study employed a descriptive research design on a population of 1552 micro and small enterprises in Nairobi City County, with 318 respondents serving as the sample. Closed-ended, standardized questionnaires were used to collect the data, and descriptive and inferential statistics were used to analyze the data collected. The results showed that entrepreneurial competencies (risk-taking, leadership, innovation and networking) of the MSEs/managers (entrepreneurs) have a significant and positive influence on the growth of MSEs in Nairobi City County, thus improving their probabilities of growth. The research thus recommends the MSEs, through their strategic management, to embrace the four entrepreneurial competencies (risk-taking, leadership, innovation and networking) to enhance their growth and gain a competitive edge.