INFLUENCE OF ENTREPRENURIAL WORKING ENVIRONMENT ON EMPLOYEE PRODUCTIVITY AMONG SMALL AND MEDIUM ENTERPRISES

Abstract

The purpose of the study was to determine the influence of entrepreneurial working environment on employee productivity among small and medium enterprises in Kitale town, Kenya. The specific objectives of the study were to; examine entrepreneurial working environment, establish employee productivity and to find out the relationship between entrepreneurial working environment and employee productivity among small and medium enterprises in Kitale town. The study used both descriptive, cross-sectional and correlation research designs. A total of 14 SME hotels with a total of 92 regular employees were sampled to participate in the study. The sampling method used was census since the population was small. The research instruments reliability test had a cronbatch’s alpha value of 0.884 which was above the threshold. The results indicated that SMEs hotels have not embraced entrepreneurial working environments in their work places which will allow employees to be motivated to exploit their potential and improve on productivity. The study results also showed that employee productivity is low implying that they may not be achieving their set targets which affects performance of SMEs hotels. The study results also revealed that there was a significant relationship between entrepreneurial working environment and employee productivity. The study recommendations were;the SMEs hotels are facing stiff competition from world class hotels, to remain relevant and in productive operations, they should embrace creation of entrepreneurial environment where their employees will feel motivated and valued. The SMEs hotels should consider recruiting entrepreneurial human resources who will easily utilize their unique skills and talents to benefit the enterprises they work with and the county government of Trans Nzoia and national government should draft a policy to provide incentives to SMEs hotels while operating in uncertain business environments..
 Keywords: Entrepreneurial Environment, Productivity, Small and Medium Enterprises, Employee, Hotel