Entrepreneurial Risk-Taking Propensity, Competitive Environment and Performance of Small and Medium Enterprises in Blue Economy Sector in Kenya

Abstract: Despite the significant potential of blue economy small and medium-sized enterprises (SMEs) to contribute to Kenya's socio-economic development, empirical evidence indicates that over 63% of local SMEs operating in this sector fail within five years of establishment. While various disciplines have adopted distinct blue economy models, existing empirical literature lacks conclusive evidence on the role of entrepreneurial risk-taking propensity in enhancing the performance of struggling SMEs within Kenya’s blue economy sector. This gap underscores the need for further research. This study investigated the influence of entrepreneurial risk-taking propensity on the performance of SMEs in Kenya’s blue economy sector. An exploratory research design was adopted, targeting a population of 221 internationalized blue economy SMEs in Kenya. A sample of 258 respondents was drawn from 86 of these enterprises using proportionate sampling techniques. Primary data were collected through a semi-structured questionnaire, and both quantitative and qualitative analysis methods were employed to interpret the data. Regression analysis was used to estimate the relationship between variables. The findings revealed that entrepreneurial risk-taking propensity has a statistically significant impact on SME performance within the blue economy, accounting for 35.1% of the variance in performance (F = 113.672, p < 0.001). Inclusion of the competitive environment marginally exhibits a statistically significant moderating effect on the relationship between entrepreneurial risk-taking propensity and performance of SMEs in Kenya’s blue economy sector. The interaction term significantly improves the explanatory power of the entrepreneurial risk-taking propensity. Based on these results, the study recommends that SMEs within the blue economy enhance their performance by cultivating and institutionalizing a culture of entrepreneurial risk-taking. Keywords: Blue Economy, Competitive Environment, Entrepreneur Background, Entrepreneurial Risk-Taking Propensity, Small and Medium-Sized Enterprises, Performance, Personal traits. Title: Entrepreneurial Risk-Taking Propensity, Competitive Environment and Performance of Small and Medium Enterprises in Blue Economy Sector in Kenya Author: Ronald Kenyanya Nyamosi, Dr Jane Omwenga, Dr Joseph Ndururi International Journal of Social Science and Humanities Research ISSN 2348-3156 (Print), ISSN 2348-3164 (online) Vol. 14, Issue 1, January 2026 - March 2026 Page No: 193-204 Research Publish Journals Website: www.researchpublish.com Published Date: 26-February-2026 DOI: https://doi.org/10.5281/zenodo.18781421 Paper Download Link (Source) https://www.researchpublish.com/papers/entrepreneurial-risk-taking-propensity-competitive-environment-and-performance-of-small-and-medium-enterprises-in-blue-economy-sector-in-kenya