Assessing the Relationship between Perceived Business Alertness and Business Performance

Abstract

This study was set to explore the relationship between perceived business alertness and business performance. According to Kirzner (1997) any individual having an “antenna” that permits recognition of gaps within the market is one having business alertness. These individuals have a “unique preparedness” that enables them to consistently scan the environment ready to discover new opportunities. Rate of market growth, market share, and number of products introduced to the market, rate of increase of employee, office increase and increase in sales volumes were used as performance indicators. Data was collected from 220 out of 625 entrepreneurs in the industrial area Nairobi making a sample size of 36.8 %. The measurement instrument was subjected to a reliability test using the cronbach alpha which gave a 0.8357 level of reliability and consistency. Pearson’s correlation analysis revealed that business alertness of the entrepreneurs significantly increased all performance indicators.