FOUNDERS’ BUSINESS DECISIONS AND FINANCIAL PERFORMANCE OF SMALL-SCALE DAIRY PROCESSING PLANTS IN CENTRAL, KENYA

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dc.contributor.authorSOPHIA N. NJUGUNA
dc.date.accessioned2026-03-31T17:49:58Z
dc.date.available2026-03-31T17:49:58Z
dc.date.issued2025-09
dc.descriptionThesis
dc.description.abstractSmall-scale dairy processing plants in Central Kenya face persistent financial challenges due to ineffective strategy execution, inefficient resource use, limited innovation and inherent business risks. This study investigated how founders’ strategic business decisions influence the financial outcomes of small-scale dairy processing enterprises in Central Kenya. Specifically, it explored the impact of decisions related to financing, revenue generation and marketing, risk management and innovation on business performance. The research is grounded in four theoretical models: ResourceBased View, Pecking Order Theory, Prospect Theory and Schumpeter’s Innovation Theory. A cross-sectional survey design guided the research process. The target population was all the 66 licensed small-scale dairy processing businesses located in the counties of Nyeri, Kiambu, Murang’a, Kirinyaga and Nyandarua, based on data from the Kenya Dairy Board. The study population consisted of all the stakeholders in the dairy processing plants A census method was used to capture the entire study population. Hence the sample size included 166 participants, comprising founders and key decision-makers such as chief executive officers, finance and marketing managers, extension officers and cooperative officials. Data was collected through structured questionnaires featuring Likert-scale items. Data was analysed using descriptive and inferential statistics (specifically regression analysis and analysis of variance) with the help of SPSS Version 26.0. The study found that founder’s level of involvement on the running of the dairy processing plants was low, founder’s financing decisions, revenue management decisions, and innovation decision had significant positive effects while founder’s risk management decision had no significant effect on the financial performance of dairy processing plants in Central Kenya for the period under study. The study concluded that most dairy processing plants in Central Kenya do not survive beyond the third year of operation and that for the period under study, that there was enough evidence to suggest that the founder’s financing decisions, revenue management decisions and founder’s innovation decisions all had a statistically significant positive effect on the financial performance of small-scale dairy processing plants in Central, Kenya and that there was not enough evidence to suggest that the founder’s financial risk management decisions had a statistically significant positive effect on the financial performance of small-scale dairy processing plants in Central, Kenya. The study recommended that founders get more involved in decisions involving the financing, revenue management and innovation as well as seek knowledge and training on the various enterprise risk management techniques for dairy processing plants.
dc.identifier.urihttps://repository.cuea.edu/handle/123456789/660
dc.language.isoen_US
dc.publisherTHE CATHOLIC UNIVERSITY OF EASTERN AFRICA
dc.subjectFounders’ business decisions
dc.subjectfinancial performance
dc.subjectsmall-scale dairy processing
dc.subjectentrepreneurship
dc.subjectbusiness decision-making.
dc.titleFOUNDERS’ BUSINESS DECISIONS AND FINANCIAL PERFORMANCE OF SMALL-SCALE DAIRY PROCESSING PLANTS IN CENTRAL, KENYA
dc.typeThesis

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