Factors Influencing Successful Opportunity Recognition and Exploitation Among Small Scale Manufacturers in Kariobangi Light Industries
Most developing countries are characterized by the rise and growth of SMEs. SMEs play a central role in terms of economic development and employment. However, despite their huge contribution in the society, debate still lingers in terms of how entrepreneurs recognize and exploit opportunities. This study investigated the role of prior knowledge, entrepreneurial cognition, social networks, entrepreneurial alertness and personality traits in the successful recognition and exploitation of opportunities. The study was guided by three objectives: to identify how mall scale manufacturers in Nairobi recognize opportunities, to find out their capabilities to exploit opportunities and to establish the factors influencing successful opportunity recognition and exploitation among small scale manufacturers in Kariobangi Light Industries. The study was conducted among small scale manufacturers in Kariobangi Light Industries in Nairobi County. A quantitative research approach was used and a descriptive survey design. A questionnaire was administered to a sample of 39 respondents using a simple random sampling technique. The data collected was analyzed quantitatively using descriptive and inferential statistics. The study was guided by three theories: the Schumpeterian theory, Entrepreneurship theory and Kirzenian theory. In terms of findings, coefficient of determination revealed that personality traits, prior knowledge, social networks, entrepreneurial alertness and entrepreneurial cognition had a significant positive effect on successful opportunity recognition and exploitation. The study found and concluded that these factors influenced opportunity recognition and exploitation among small scale manufacturers in Kariobangi Light Industries and had an immense impact on the initiation and operation of these small scale manufacturers. The study recommends that a study of these factors influencing opportunity recognition and exploitation should be done in other parts of Kenya and should include all types of businesses.
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