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Winnie Kabura Mugure

Student, MBA (Entrepreneurship)

Kenyatta University


Linda Kimencu

Department of Business Administration

Kenyatta University


CITATION: Mugure, W., K. & Kimencu, L. (2021) Strategic Entrepreneurship and Competitiveness Among Smes in The Dairy Industry in Nairobi City County, Kenya. International Journal of Arts and Entrepreneurship. Vol. 10 (10) pp 57 – 76.



The dairy industry is an important player in the economic since it has a significant contribution to the GDP and employment. However, the small and medium enterprises operating in dairy the industry face a number of challenges which creates an unfavourable competition ground. This, therefore, leaves them with pressure on how to survive and prevail. It remains an uphill task competing with the big players without strategically positioning themselves entrepreneurially. The purpose of the study was to examine how strategic entrepreneurship affects the competitiveness of the SMEs in the dairy industry in Nairobi City County, Kenya. The study specifically sought to establish the effect of entrepreneurial skills and financial services on competitiveness of the SMEs in dairy industry in Nairobi City County. This study was anchored on Resource Based View (RBV) and Schumpeterian and Theory Porter’s generic strategies. The study was on the SMEs in the dairy industry in Nairobi City County, Kenya. The research adopted descriptive research design targeting 53 SMEs in Nairobi City County. The target population comprised the dairy industry SMEs in Nairobi County that are registered with Kenya Dairy Board. The study will be a census study and therefore all the 53 SMEs formed the sample size of study. Primary data was collected by use of a semi structured qquestionnaire. A pilot study was carried out to test the validity and reliability of the questionnaire. Data analysis was done by use of descriptive and inferential statistics with the aid of SPSS and presented through tables, charts, graphs, frequencies and percentages. The study concludes that entrepreneurial skills have a positive and significant effect on competitiveness of the SMEs in the dairy industry. Accesses to financial services affect competitiveness of SMEs in the dairy industry to a very great extent. The study recommends that SMEs employ skilled and competent employees and should continuously train their employee in order to impart relevant skills. SMEs need to embrace innovation and continuously seek ways to be innovative remain relevant in the industry. The results of this research would be valuable and beneficial to the SMEs in the dairy industry, the researchers in the field of entrepreneurship and to the government as the policy maker. The results would be used to create future strategies that will see the SMEs in the dairy industry more profitable.


Key Words: Strategic Entrepreneurship, entrepreneurial skills and financial services Competitiveness



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