Examining the Contribution of Entrepreneurial Proactiveness to the Growth of Micro, Small and Medium Enterprises in Kenya

Abstract

Abstract The study examines the role of proactiveness, a key dimension of Entrepreneurial Orientation (EO), in the development of Micro, Small, and Medium Enterprises (MSMEs) in Kenya. MSMEs are important for economic growth and job creation in emerging economies, but their expansion in Kenya is hindered by limited credit access, regulatory instability, infrastructural gaps, and intense competition. EO provides a framework for firm competitiveness, with proactiveness, defined as a forward-looking orientation that enables firms to anticipate change, exploit opportunities, and act ahead of competitors, emerging as a particularly strategic capability. Despite its importance, empirical evidence on proactiveness in African MSMEs remains limited. To address this gap, the study adopted a sequential mixed-method design targeting 284 manufacturing firms and innovation oriented startups in Nairobi. Quantitative data from structured questionnaires were analysed using regression, while qualitative insights from semi-structured interviews highlighted how proactive practices supported opportunity identification, market adaptation, and resilience. Results revealed a significant positive effect of proactiveness on MSME growth (r = .631; β = .574, p < .001), explaining nearly 40 per cent of performance variance. Qualitative findings reinforced that firms embedding proactive scanning and early market entry strategies sustained superior growth despite resource constraints. The study advances EO theory by highlighting proactiveness functions both as a behavioural orientation and a dynamic capability in turbulent environments. Practically, managers are encouraged to institutionalise proactive practices, while policymakers should design ecosystems that reward forward-looking strategies. These insights position proactiveness as a pathway to inclusive and sustainable MSME development in Kenya and comparable economies.