EFFECTS OF ENTREPRENEURAL TRAINING ON PERFORMANCE OF MICRO AND SMALL BUSINESSES: A CASE OF MURANG’A TOWN CENTRAL BUSINESS DISTRICT.

Abstract

The general objective of the study was to examine the influence of entrepreneurial training on performance of Micro and Small enterprises in the Central Business District of Murang’a Town. The study specifically evaluated the influence of bookkeeping skills, budgeting, credit management skills and saving skills training influence performance of micro and small enterprises in the Central Business District of Murang’a Town. This study made use of descriptive research design to answer questions concerning the effect of entrepreneurial training on the performance of micro and small enterprises. The target population for this study was 152 owners/managers of micro and small enterprises operating in CBD of Murang’a Town. Stratified random sampling was used to select a representative sample of 46 respondents representing 30% of the target population. Questionnaires were used to collect data which was then tabulated and analyzed using percentages and descriptive statistics like mean. Qualitative data from the open- ended questions was analyzed on the basis of various themes and presented in narrative form and prose. The study revealed from majority (75%) of the respondents that they never practiced any bookkeeping in their businesses before the training. It was however revealed (Mean=2.225) that skills in maintaining the debtors and creditors ledgers have helped them in the expansion endeavors. The study also established that majority (87.5%) of the respondents never did budgeting before the training. It was found out that (mean=1.575) that preparation of budgets enhances the financial performance of small and medium businesses. In relation to whether or not the respondents had a credit management program before the entrepreneurial training, majority (80%) of the respondents indicated that they never had a credit management program in place before the training. As concerns saving skills training, majority (62%) did not have savings plans before the financial literacy training, while the rest (38%) had savings plans before the training. It was found out that 50% of the respondents do not have up to date savings records while another half of the respondents (50%) do not have their savings records up to date. The study concludes that bookkeeping has a big role to play in enhancing the financial management skills of the small businesses owners making it easy for them to have adequate cash flows for performance of micro and small enterprises. It was also concluded that the managers of micro and small enterprises have an idea what bookkeeping is given that some of them were able to prepare creditors ledger and debtors Ledger. The study recommended that the management of micro and small enterprises should give equal emphasis to all books of account. The managers should also hire professionals at a fee to help them prepare thee books for enhanced financial management and performance of micro and small enterprises. Financial institutions can continually assist business managers in the preparation of the required books before advancing loans to them. It was also recommended that the managers/owners of micro and small enterprises need to involve employees in the budgeting process. This will help in ensuring the success of the entire process. The study further recommended for the management of micro and small enterprises to be attending similar trainings to sharpen their budgeting skills which in turn help them to repay their loans. The researcher recommended that a similar study be done on any other training programs like that of Equity Bank foundation to compare the findings.