Organizational Micro Level Determinants of Survival of Youth Owned Micro and Small Enterprises in Nyeri County, Kenya

Abstract

Despite all the investments made by various players, youth owned MSEs have not succeeded in getting off the ground and a high failure rate among them has been documented. As a concern to this high failure rate among the youth owned MSEs, the study sought to evaluate the micro level determinants of survival and success of youth owned MSEs. The study adopted descriptive research. The population of the study constituted the entire 98 MSEs in Nyeri South Sub County, Kenya as at 31st July 2016. Out of the 98 questionnaires that were distributed, 55 were completed and returned accounting for 56% response rate. Questionnaires were used to collect primary data from the proprietors of the youth owned MSEs. The researcher carried out a pilot study in order to enhance the validity and reliability of the research instruments Cronbach’s Alpha Coefficient (α) was applied to determine reliability of the questionnaires. The data was analyzed using descriptive and inferential statistics. The results of descriptive analysis established that micro level determinants affect the survival of youth owned MSEs to a moderate extent; the desire for independence in the entrepreneur affects the survival of his/ her enterprise to a great extent. Risk taking propensity of the entrepreneur, entrepreneur’s ability to recognize a business opportunity, demographic characteristics of the entrepreneur and need for achievement in the entrepreneur affects the survival of his/her enterprise to a moderate extent. Regression results indicated that micro level determinants had positive and statistically significant effect on Survival of MSEs. Based on the findings of the study, it is recommended that MSE owners should invest in their knowledge in business operations and acquire business management skills.