INFLUENCE OF FOUNDERS’ FINANCING AND REVENUE MANAGEMENT DECISIONS ON FINANCIAL PERFORMANCE OF SMALL-SCALE DAIRY PROCESSING PLANTS IN CENTRAL KENYA

Abstract

Small-scale dairy processing plants in Central Kenya face ongoing financial difficulties due to poor strategy execution, inefficient resource use, limited innovation, and business risks. This study examined how founders’ strategic decisions—particularly in financing and revenue management—affect financial performance. Using a cross-sectional survey of 66 licensed dairy processors across the five counties of of Nyeri, Kiambu, Murang’a, Kirinyaga and Nyandarua, data was collected from 166 stakeholders including founders, CEOs, and managers. Analysis revealed that while founder involvement in daily operations was low, their financing and revenue management decisions significantly improved financial outcomes. However, most plants failed to survive beyond three years. The study concluded that founder-led financial and revenue strategies positively influence business performance and recommended increased founder engagement and training in enterprise risk management. The study recommended that founders get more involved in decisions involving the financing and revenue management decisions for dairy processing plants in order to improve the dairy processing plants financial performance.