INFLUENCE OF ENTREPRENEURIAL ORIENTATION ON GROWTH OF DAIRY AGRIBUSINESSES IN SMALL AND MEDIUM ENTERPRISES IN NAIVASHA SUB-COUNTY, KENYA

Abstract

The purpose of this study was to examine the influence of entrepreneurial orientataion on growth of dairy agribusiness in small and medium enterprises in Niavasha Sub-county, Kenya. The target population of this study was 133 dairy agribusiness  in Small and Medium Enterprises in Naivasha-sub county . The study adopted a descriptive survey and a census was used for the data collected through the use of questionnaires. The data was analyzed with help of SPSS. The study adopted a regression analysis at 0.05 level of significance to determine strength and direction of the relationship of the variables under study. From regression model of growth of dairy agribusiness coefficient of determination R Square was 0.622 and R was 0.789. The coefficient of determination R Square indicated that 62.20% of the variation on Growth of Dairy Agribusiness was explained by the set of independent variables. The remaining 37.80% of variation in Growth of Dairy Agribusiness was explained by other variables not included in this model.  This indicated that the set of independent variables were important factors that needed to be enhanced to boost growth of dairy agribusiness in the study area. The study recommended that entrepreneurs need to embrace pro-activeness in enterprises to seize new opportunities in the market. There is need for the entrepreneurs to have innovativeness in the enterprises to engage in and support new ideas, novelty, experimentation, and creative processes that may result in new products, services, or technological processes. Innovation is an important means of pursuing opportunities and so is an important component of entrepreneurial orientation. The enterprises should embrace risk taking propensity to increase the earnings. It will enhance the internal locus of control and a high need for achievement associated with higher performance by enterprises. The entrepreneurs were encouraged to be creative for example in the product design, knowledge related to product, technological expertise of knowing how to collaborate with specific relationships and the firms accumulated knowledge about the product. The business environment is dynamic and requires creativity to enhance growth of dairy agribusiness.   Key Words: innovativeness, proactiveness, creativity, risk taking, agribusiness