Determinants of new market entry by small scale earthenware manufacturers in Kenya

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Publication Date: 
01 January 2008
Matanda Margaret
UN Millennium Development Goal: 
Eradicate extreme poverty and hunger

Access to new markets remains a major challenge to the performance of small scale earthenware manufacturers in Kenya. While several factors that may affect the likelihood of small enterprises to access new markets have been identified in literature, the role of entrepreneurial orientation is not well understood.

A survey research design was adopted to examine the effects of entrepreneurial orientation on access to new markets using a sample of 384 small-scale earthenware manufacturers from Western Kenya. The Covin and Slevin entrepreneurial orientation scale as modified by Lumpkin and Dess was utilized in this study.

Factor analysis of the sub-dimensions of entrepreneurial orientation indicated that this concept is unidimensional. Estimation results using a logit model indicate that entrepreneurial orientation influences the entry of small-scale earthenware manufacturers into new markets. Policy makers interested in enhancing the entry of small businesses into new markets are therefore advised to focus on measures that can improve the entrepreneurial orientation of owners of small businesses.