Entrepreneurial Management Structure and Performance of Small and Medium Livestock Enterprises in Kenya

Abstract

The purpose of this study was to investigate the relationship between entrepreneurial management structure and the performance of small and medium livestock farms in Kenya, with a focus on examining the moderating effect of the regulatory framework on this relationship. The study was grounded in key theoretical frameworks, including Joseph Schumpeter’s theory of innovation, Knight’s Uncertainty Bearing theory, McClelland’s theory of motivation, the Resource-Based View theory, and the Neo-Classical Theory of Management (Elton Mayo). These theories provided a comprehensive understanding of the factors influencing entrepreneurial success in the livestock sector. A mixed research design was adopted, targeting a population of 500 livestock enterprises in Turkana County. Stratified sampling was employed to ensure representation across different enterprise sizes, resulting in a sample of 196 entrepreneurs. Data was collected using meticulously designed questionnaires, and the validity and reliability of these instruments were confirmed through pilot testing. The analysis revealed that entrepreneurial management structures, when effectively aligned with supportive regulatory frameworks, significantly enhance the performance of small and medium livestock enterprises in Kenya. To further strengthen the livestock sector, the study recommends that SMEs adopt comprehensive strategies, including product diversification, differentiation, cost reduction, and internationalization. Additionally, technological and innovation incubators should play a crucial role in ensuring that new technologies are relevant, compatible, and beneficial to the livestock sector. Government intervention is vital, with the need for incentives to enhance competitiveness, alongside strategies to retain market share in a challenging environment. The study also emphasizes the importance of implementing performance-based reward schemes and continuous managerial training to boost decision-making and enterprise success. Moreover, robust anti-corruption policies and streamlined tax systems are essential to reducing bureaucracy in the livestock value chain. These findings are expected to benefit a wide range of stakeholders, including entrepreneurs, policymakers, implementers, and the broader public, contributing to sustainable growth in the livestock sector.