Influence of Entrepreneurial Networking on Small Enterprise success: A Service Industry Perspective

Entrepreneurial networking includes the linkages and connectivity through which entrepreneurs obtain information resources, knowledge and social support about market opportunities. While network relationships have been recognized as indispensable for SMEs to the achievement of growth, a particular focus on entrepreneurial networks in the service industry has been limited. The main objective of the study was to examine the influence of firm’s entrepreneurial networking and its influence on the success of Small and Micro enterprises in Eldoret Town in Uasin Gishu County. The study utilized exploratory survey design. Specific objectives were: to examine the relationship between entrepreneurial networks and enterprise success, and to determine the relationship between entrepreneurial ties and enterprise success. Small and Micro business owners in the service industry were divided into a sample by use of simple random technique to arrive at a sample size of 240 SMEs from a target population of 1200 in the service sector, Eldoret Town, Uasin Gishu County. The study was guided by Relational Theory of Social Networks. Data was sorted coded and analyzed using inferential statistics as: Pearson’s product moment correlation, Chi-Square methodS and Analysis of variance (ANOVA) and multiple regressions. The study found out that, there was a strong positive relationship between networking [r=.683] and ties [r=.559] on entrepreneurial success. This indicated that an increase in networks and ties will lead to greator entrepreneurial success. It is hoped that the results of this study will assist to sharpen entrepreneurs’ skills and policy formulation and development of entrepreneurial networking.