Entrepreneurial and Business Management Skills Development and Growth of Micro, Small and Medium Enterprises in Nairobi, Kenya

Abstract

Entrepreneurial and business management skills are essential in open economies since they enable micro, small, and medium enterprises (MSMEs) to operate effectively, promote growth, and foster long-term sustainability. Despite the vital contribution of these enterprises to the economy, they have often failed or struggled to grow due to lack of skilled manpower, government regulations, and shortage of operating capital. The following objectives informed this study: to determine the extent of entrepreneurial and business management skills development among MSMEs in Nairobi Kenya and to determine the relationship between entrepreneurial and business management skills and growth of MSMEs in Nairobi Kenya. A cross-sectional survey design was used in this study. The target population of the study consisted of micro, small, and medium enterprises in Nairobi City County operating in different sectors. Simple random sampling technique was used in the selection of the enterprises sample of 380 micro, small, and medium enterprises was drawn from the target population of 36,673 ventures. The results indicated that entrepreneurial skills (r=0.164, p=0.018) and business management (r=1.024, p=0.000) skills development exhibited a positive and statistically significant relationship with growth of micro, small, and medium enterprises in Nairobi County. Based on the overall findings, the study concluded that entrepreneurial and business management skills development influenced growth of micro, small, and medium enterprises. The study recommends micro, small, and medium enterprises to focus on enhancing their commitment to innovation and success by setting clear and specific goals, capitalizing on market opportunities, and promoting a culture of innovation.