The Effect of Retiree Financial Resources on the Performance of Micro and Small Enterprises in Murang’a Township

Abstract

Using the continuity theory as a lens, this study recognizes that retirement is not the end of working for retirees. Retirees establish continuity in their lives through MSEs. The focus of the study was the effect of retirees’ financial resources on the performance of micro and small enterprises in Murang’a Township. The objectives were to assess the characteristics of retireeowned MSEs in Murang’a Township; to examine the relationship between retiree’s financial resources and the performance of their post-retirement businesses in Murang’a Township and to determine the challenges of retiree-owned MSEs in Murang’a Township. The study used a descriptive cross-sectional approach. The retirees were identified through non-random sampling and therefore the findings of this study cannot be generalized to a larger population. The study findings determined that there were more male business owners than female ones. The highest level of education by a majority of the retirees was completing secondary school and the agegroups of the retirees were between 55-84 and 85 and over. To examine the relationship between retiree financial resources and the performance of micro and small enterprises, the chi-square test of independence was carried out in order to avoid assumptions of normality. The results show that there is no relationship between retiree financial resources and the performance of micro and small enterprises in Murang’a Township. The study used non-financial performance measures for there is no empirical evidence of preferring financial over non-financial performance measures. The study concluded that in fact, performance measures vary depending on the individual entrepreneurs’ objectives. The findings point out that almost all the retirees’ sampled considered their business an absolute success even though the motives for starting the business varied from one individual to the other.