The Influence of Risk-Taking Propensity on the Performance of Textile-Based Manufacturing Small Enterprises in Kenya

The performance of small enterprises in the textile-based manufacturing sector holds significant implications for economic development in Kenya. This study aimed to examine the influence of risk-taking propensity on the performance of textile-based manufacturing small enterprises in Kenya. Adopting a mixed-method research design, the study systematically integrated quantitative and qualitative methods to gain a comprehensive understanding of this phenomenon. The target population included 1, 353 registered textile manufacturing SMEs across various economic blocs in Kenya, representing a diverse spectrum of the industry. A purposive, stratified, and simple random sampling technique was applied to select a sample of production and technical supervisors from these SMEs. This multi-method approach enabled a thorough exploration of risk-taking behavior and its impact on performance. Quantitative data analysis, conducted using the Statistical Package for Social Sciences (SPSS), revealed a significant and positive relationship between risk-taking propensity and the performance of textile-based manufacturing small enterprises. Enterprises that exhibited a greater willingness to take calculated risks and explore new opportunities demonstrated superior performance outcomes. Qualitative data analysis, employing content analysis, further enriched these findings by providing insights into the "how" and "why" aspects of risk-taking behavior among entrepreneurs in the sector. This qualitative dimension elucidated the underlying motivations and strategies that drove risk-taking decisions, offering a more holistic perspective. In conclusion, this study establishes that risk-taking propensity is a pivotal determinant of performance in textile-based manufacturing small enterprises in Kenya. The recommendations derived from this research underscore the importance of fostering a culture of risk-taking and an entrepreneurial mindset, facilitating knowledge exchange and collaboration, ensuring access to financial resources, and creating a supportive policy environment.