The Relationship between social Entrepreneurship and Performance of Social Enterprises in Nairobi County

Abstract

The purpose of social entrepreneurship in the country remains closely related to minimizing communal challenges and consequently reducing poverty levels. Social entrepreneurship has been recognized as an approach to responding to social challenges such as unemployment, deprivation, and social division, to attain widespread social justice. Social enterprises generate positive development in the larger society by engaging the marginalized people in society. The general objective of the study was to investigate the relationship between social entrepreneurship and the performance of social enterprises in Nairobi County. The study specific objectives were to determine the influence of access to social capital on the performance of social enterprises; to examine the influence of entrepreneur intention on the performance of social enterprises; to determine the influence of social innovation capabilities on the performance of social enterprises and to assess the influence of entrepreneurship risks on performance of social enterprises. Theories informing the study included social capital, social enterprise, social innovation, and stewardship theory. The study employed a descriptive study approach targeting 216 middle-level managers of 36 social enterprises in Nairobi County. The sampling size was made up of 138 participants selected through stratified and random sampling approaches. Questionnaires were administered both online as well hand delivered. Quantitative techniques were employed to analyze data by SPSS 23.0 on both descriptive and inferential analysis. The presentation of findings was through frequency tables that were interpreted narratively. The study revealed a (β = 0.280, t=3.215 on the access to social capital, which was associated with a p-value of 0.002 implying a positive and significant influence on performance. On entrepreneur intention and performance, a (β = 0.071, t=0.622 associated with a p-value of 0.535 was revealed. On the social innovation capabilities and performance, the study revealed a (β =0.120, t= 1.161 and a p-value of 0.248. Finally, the study revealed that entrepreneurship risk and performance had a (β = 0.411, t=4.290, and a p-value of <.001). The study concluded that access to social capital and entrepreneurship risk had a positive and significant relationship with performance. However, performance had insignificant relationship with entrepreneur intention and social innovation capabilities. The study recommended for social enterprises to create sufficient marketing networks with financial institutions and credit partners for social capital support and come up with strategies to set long-term and short-term goals for the enterprises through business plans. Further, the study recommended for social enterprises to innovatively create new and attractive products in the market. Lastly, social enterprises come up with measures such as cyber firewalls and risk management plans for the enterprises to enhance better performance and also, entrepreneurs to take moderate risk to avoid adverse business performance.