ENVIRONMENTAL CONSERVATION PRACTICES AND BUSINESS PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN ELDORET MUNICIPALITY, KENYA

Abstract

SMEs in Eldoret face multiple challenges, including inadequate access to financing, lack of proper training, and ineffective management practices and this complicates their priority action on environmental conservation. Therefore, this study sought to explore the influence of environmental conservation practices on business performance of SMEs in Eldoret Municipality, Kenya. The study's specific objectives were; to assess the influence of environmental conservation waste reduction practices, training practice, corporate social responsibility on environmental conservation and green energy environmental conservation practices on business performance of Small and Medium Enterprises in Eldoret Municipality. This study was anchored on the Institutional theory that asserts that organizations are a subject of the institutional environment where they adopt alike structures and practices so as to match with societal expectations and norms. The study was also based on the Dynamic Capability Theory which observes that; dynamic potentials are the firm's capacity in engaging, adoption, integration and reconfiguration of internal and external organizational skills, resources, and functional competences to match the requirements of a changing environment. The study was carried out in Eldoret Municipality in Uasin Gishu County, Kenya. This study employed a descriptive correlational research. The target population was 2053 comprising of owner/managers while sample size was 335 respondents from registered SMEs operating in the Uasin Gishu County. The study adopted stratified and cluster sampling technique to select the SMEs to specifically select owners or managers. Questionnaires were used in data collection from the sampled managers or the owners. Data were analysed using descriptive statistics (frequencies and percentages, means and standard deviations). The analysed data were presented in form of tables. The study findings revealed that Environmental conservation waste reduction practices had a positive linear effect on business performance of Small and Medium Enterprises (β1=0.160, p=0.004). Environmental conservation training practice was also found to be positively correlated with business performance of Small and Medium Enterprises (β2=0.131, p=0.011) There is a positive and statistically significant relationship between corporate social responsibility conservation practices and business performance of Small and Medium Enterprises (β3=0.236, p=0.000). Green energy environmental conservation practices were also found to be positively correlated with business performance of Small and Medium Enterprises (β4=0.342, p=0.000). The study concluded that waste reduction practices had a significant positive influence on business performance of Small and Medium Enterprises. Environmental training for employees leads to greater innovation in managing resources and cost-saving measures.The findings would inform policymakers and business development organizations, promoting a win-win situation for businesses and the environment.