Entrepreneurial Competencies and Performance of Dairy Cooperatives in Machakos County, Kenya

Abstract

The objective of the study was to establish entrepreneurial competencies and performance of dairy cooperatives in Machakos County, Kenya. Specifically, to establish the extent to which managerial competencies influence performance of dairy cooperatives in Machakos County, Kenya; to determine the extent to which entrepreneurial traits influence performance of dairy cooperatives in Machakos County, Kenya; and to assess the effects of technical skills on performance of dairy cooperatives in Machakos County, Kenya. The study was descriptive. The study was a census of the 15 dairy cooperatives registered under the Lower Eastern Dairy Cooperative Association in Machakos County. The unit of analysis was the cooperatives while the units of observations were the board members of the cooperatives. A standard questionnaire was used to collect primary data from the board members of the cooperatives. Data analysis included frequencies, percentages, and t- tests. The data was analyzed by use of computer statistical packages and data presented in tables and figures. Based on the first study objective, study concludes that there was lack of sufficient evidence to show that managerial competencies have an effect on performance of dairy cooperatives in Machakos County. Based on the second study objective, the study concludes that there is adequate evidence to show that entrepreneurial traits have positive effects on performance of dairy cooperatives in Machakos County. Based on the third study objective, the study concludes that there is adequate evidence to show that technical skills have positive effects on performance of dairy cooperatives in Machakos County. The study recommends development, adoption and full implementation of business and strategic plans for the cooperatives for them to attain sustainable competitiveness and growth. The study also recommends data based product development and diversification. Further training would be critical in building capacity for creativity, risk taking, situational analysis and opportunity identification. Moreover, the study recommends training to enhance employees’ capacity and effectiveness in financial management; procurement; production; and marketing. Particularly, loss of revenue due to spoilage of milk can be controlled by training on best processing and quality control methods while training on marketing, would be critical in enhancing product penetration, reducing customer complaints and stimulating positive growth. Finally, further investigations should be conducted to widening the scope of the study to compare Machakos to other parts of the Country and also to identify reasons for high labor turnover and poor public relations between the cooperatives and communities surrounding them.

Keywords: Entrepreneurial competency, Performance

DOI: 10.7176/EJBM/11-33-13

Publication date: November 30^th 2019