Analysis of factors influencing the growth of micro, small and medium enterprises in Wajir County, Kenya
Abdullahi, Mohammed A.
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Interest in the role of micro, small and medium-sized enterprises (MSMEs) in the countries development process continues to be in the forefront of policy debates in developing countries. Wajir County is one of the poorest regions of Kenya with a poverty rate of 84 percent. The region suffers from low household wealth, high unemployment, insecurity and perennial droughts. Wajir County hosts MSMEs that could help uplift the region and improve the condition of the inhabitants. Despite this, MSMEs in Wajir face a number of factors that hinder their growth and survival. This study sought to establish the factors hindering the growth of MSME’s in Wajir County. The specific research objectives were; to determine the characteristics of entrepreneur, the environmental factors and organizational factors that influence growth of MSMEs in Wajir County. The study employed a descriptive survey design and factor analysis in studying one hundred and ten MSMEs that were sampled using stratified random sampling technique. The instrument used in data collection was a questionnaire. The descriptive analysis shows that the entrepreneurial demographic profile and number of employees and gender of employees that a firm has affect the growth of the business. Factor analysis, grouped the factors into three; namely individual factors, environmental factors, and organizational factors. The study found that for positive drivers of growth the organizational factor was the most important, while the individual factor was the most important for negative drivers of growth. The study makes managerial and policy recommendations to the businesses, the Wajir County Government and the Government of Kenya on alternative courses of action.