The Moderating Effect of Business Networking Skills on Relationship between Entrepreneurial Orientation and the Growth of Youth Owned Enterprises in Kenya

Abstract

Purpose: Youth businesses play a key role in poverty alleviation when run based on entrepreneurial orientation. However, these micro and small enterprises face a mix of achievement and frustration, with previous findings showing that three out of five companies fail within the first few long periods of activity, despite government efforts to improve the sector. This study aims to assess the moderating effect of business networking skills of communication, coordination, and relationship skills between entrepreneurial orientation and the growth of youth-owned enterprises in Kenya. Methodology: The study is supported by networking theory-Resource Based View. A stratified sampling technique was employed to obtain 397 SMEs from 55,300 SMEs registered by the seven selected counties in Kenya namely; Nairobi, Murang’a, Nakuru, Machakos, Mombasa, Kisii, and Isiolo counties. A cross-sectional survey methodology was utilized. Data was analysed using descriptive and inferential statistics. Results: The findings indicated that the association between entrepreneurial orientation and expansion of youth-owned businesses in Kenya was positively moderated by networking skills. Conclusion: The study concludes that networking skills, as measured by communication,coordination, and relationship skills lessen the overall influence of entrepreneurial orientationon the expansion of youth-owned businesses. The study suggests that founders of youth businesses should continue to hone their networking skills. In particular, they should be clear in communication just like other players in the market to effectively convey the right message, and apply relationship skills respectively.