Effect of Entrepreneurial Competence on Success of Women Entrepreneurs in Bungoma, Kenya

Abstract

Enterprise success has become increasingly popular among practitioners and scholars in the field of entrepreneurship. This is because successful entrepreneurs are important to the development of the economy since they provide value through job creation and economic growth. Moreover, success motivates and is the ultimate direction of every entrepreneurial efforts including entrepreneurial efforts of women entrepreneurs whose contribution to the development and transformation of a country has long been recognized.  To date women entrepreneurs are starting enterprises at three times the rate of their male counterparts. However, the rate of their enterprise success has shown a lot of concern with the numbers that are successful remaining low and thus not encouraging. Although previous studies have focused on assessing the effect of entrepreneurial competencies on enterprise success among entrepreneurs in general, there are reasons to believe that entrepreneurial competencies are critical to the success of women entrepreneurs. However, little is known about the effect of entrepreneurial competencies on success of women entrepreneurs. The purpose of the study was to analyze effect of entrepreneurial competencies on the success of women entrepreneurs in Bungoma County, Kenya. The study was hinged on Resource based view theory. The study adopted a post-positivism research stance and utilized an explanatory survey design that was cross-sectional in nature. A sample of 358 respondents was selected using proportionate and simple random. Data was collect using a questionnaire and analyzed quantitatively using multivariate techniques, specifically Structural Equation Modeling. The study found that entrepreneurial competencies (β=0.358, p<0.05) had a positive and significant effect on enterprise success of women entrepreneurs. The study concluded that that entrepreneurial competencies were significant determinants of enterprise success among women entrepreneurs. The study recommends that policy makers must focus on entrepreneurial developmental initiatives and programs geared towards developing relevant aspects entrepreneurial competencies and behaviors that could influence enterprise success of women entrepreneurs. They should come up with better policies and practices to enhance enterprise success among women entrepreneurs. The study further suggested replication of this study in other sectors and micro enterprisers to verify whether what was observed in Bungoma County is applicable to other regions in Kenya and across the globe.

KEYWORDS: Entrepreneurial Competence, Enterprise, Success, Women Entrepreneurs