| dc.description.abstract | Small and Medium Enterprises (SMEs) contribute to employment and economic growth
They create about 85 % of Kenya's employment but contribute only 20% of the total
Gross Domestic Product. Moreover majority collapse before they become large
businesses. Previous research on these problems of SMEs has focused on economic and
social factors like capital, infrastructure, education and culture in vain. Whilst theory
argues entrepreneurial mindset has a role in decision making and performance of SMEs,
empirically clear information is lacking on that relationship. The main objective of the
study was to investigate relationship between entrepreneurial mindset and performance of
SMEs in Kisumu County, Kenya. Specifically the study sought to determine relationship
between each of four components of entrepreneurial mindset, that is; passion, purpose,
positioning and personality and performance of SMEs in Kisumu County, Kenya. The
study was guided by Resource Based View Theory. It adopted a descriptive cross
sectional survey design. Cluster random sampling design was used to draw a sample of
370 from target population of 10,002 owners of SMEs. Primary data was gathered using
semi structured self-administered questionnaire. Reliability of the instrument was
determined at Cronbach's Alpha of 0.841. Data was analyzed using descriptive statistics.
The findings of the study were mixed. Personality findings, were empowering employees
(Asymp.sig. 2-sided,p<0.05) and networking (Asymp.sig. 2-sided,p>0.05). This means
personality in the form of networking had insignificant relationship with SME
performance in the form of net profit. The converse is true for personality in the form of
empowering employees. Positioning findings were; target specific market and focus on
execution of ideas (Asymp.sig.2-sided, p<0.05) while limit business lines (Asymp.sig. 2-
sided,p>0.05). This means that positioning through target of specific market and focus on
execution of new ideas had significant relationship with performance of SMEs while the
converse is true for limit business lines pursued. Purpose findings were (Asymp.sig. 2-
sided, p<0.05). This means that purpose had significant relationship with performance of
SMEs. Passion findings were; area of specialty, opportunity identification and risk taking
(Asymp.sig. 2-sided, p<0.05) while business alertness (Asymp.sig. 2-sided,p>0.05). This
means that passion through business alertness had insignificant relationship with
performance of SMEs. The other three areas posed the converse. It can be concluded that
passion, purpose, positioning and personality had relationship with SMEs performance in
form of net profit per year. The study recommends that SMEs adopt and engage in
activities that strengthen entrepreneurial mindset. These findings would serve as a guide
for researchers, academicians and policy makers, to focus on entrepreneurial mindset as a
key approach directing SMEs performance. The researcher recommends further study that
use superior analysis tools such as correlation and regression for better results. | en_US |
