Corporate Entrepreneurship and Sustainable Performance of Micro-Finance Firms in Kenya

Abstract

Purpose – This paper empirically investigates the effect of corporate entrepreneurship on the sustainable performance of microfinance institutions (MFIs) in Kenya.

Design/methodology/approach – The study employed both the explanatory research design and cross-sectional design. Data was collected using structured questionnaires administered to a stratified random sample of 215 branch managers drawn from 14 deposit-taking and 37 credit-only microfinance institutions. Data was analyzed through descriptive and inferential statistics.  Multiple regression analysis, were used to test the hypotheses.

Research findings – The findings revealed that all three corporate entrepreneurship dimensions—innovativeness, proactiveness and risk-taking-had a positive and statistically significant effect on the sustainable performance of MFIs. The results confirmed that corporate entrepreneurship contributes positively to the economic, social, environmental, and governance outcomes of MFIs.

Practical implications – The study contributes to literature on sustainability and corporate entrepreneurship in emerging financial sectors and provides practical insights for MFI managers, investors, and policymakers. Managers are encouraged to embed entrepreneurial behaviors into their organizational culture to enhance long-term sustainability. Regulators and development agencies may also use these findings to design policies that foster innovation and proactive strategies in microfinance, ultimately strengthening institutional performance and resilience.

Key words: Innovativeness, pro-activeness, microfinance, sustainable performance

DOI: 10.7176/EJBM/17-6-02

Publication date: July 30^th 2025