The influence of business owners’ goals on the strategy choices and performance of micro enterprises : a study of businesses in Kenyatta Market, Nairobi
Micro enterprises form an important part of Kenya’s economy, comprising almost 70% of the businesses. They provide employment and a means of livelihood for many citizens. Despite their importance to the economy, up to 99% of these businesses fail within 3 years of establishment. The goals of owners of large businesses and corporations are known to affect the choice of business strategy and therefore its outcomes. This study set out to find out how owner’s goals affect the business outcomes of micro enterprises. A survey of micro enterprises based at Kenyatta Market in Nairobi was carried out with participants who have been in business for more than three years. The survey involved 33 respondents, and examined their goals in starting the business, strategy choices and business outcomes. The results showed that the participants’ goals were to generate income and create employment. Their preferred business strategy choice was differentiation, and a large percentage reported that their businesses were growing or surviving. The results failed to prove that a relationship exists between owner’s goals and business strategy and outcomes. This study therefore can not conclude that business owner’s goals play a role in the outcome of the business. The use of a refined data collection instrument, coupled with a larger sample is recommended in order to further evaluate the impact of business owner’s goals on the business strategy choices and outcomes in the context of a developing country.