Entrepreneurial Proactiveness and Performance of Small and Medium-Sized Enterprises in Nairobi County, Kenya

Abstract

Purpose: This study examined the effect of entrepreneurial proactiveness on the performance of registered manufacturing small and medium-sized enterprises (SMEs) in Nairobi County, Kenya.

Material/methods: Entrepreneurial Orientation Theory and the Contingency Perspective informed the study. An explanatory cross-sectional survey design was adopted, targeting a population of 618 registered manufacturing SMEs, from which a sample of 243 enterprises was selected. Primary data were collected from SME owners and managers using structured questionnaires based on a five-point Likert scale. A total of 208 usable questionnaires were obtained, representing a response rate of 85.6%. Data were analyzed using descriptive statistics, Pearson correlation, and linear regression analysis.

Findings: The findings revealed that entrepreneurial proactiveness had a positive and statistically significant effect on SME performance. The findings indicated that enterprises that anticipate market changes, identify emerging business opportunities, respond proactively to customer needs, and undertake strategic initiatives ahead of competitors tend to achieve better performance. The simple regression gave β = 0.776 (p < 0.001).

Conclusion: The study concluded that entrepreneurial proactiveness is an important strategic factor associated with improved financial and operational performance among manufacturing SMEs in Nairobi County.

Value: The study identifies practical steps for SME managers, policymakers, and enterprise development agencies. The study recommends that SME owners and managers strengthen proactive entrepreneurial practices through continuous market monitoring, customer needs assessment, business forecasting, and timely identification of emerging opportunities. Furthermore, policymakers and enterprise development agencies should enhance access to market intelligence, entrepreneurial training, and business development support to strengthen SME competitiveness, growth, and sustainability.