Analysis of critical factors affecting enterprise development in Kenya: a case of 2017 top 100 mid-sized companies in Kenya
Enterprise development is one of the most important ingredients of economic growth. In particular, SMEs contribute 45% to the GDP in Kenya. Despite the economic contributions of enterprises among the SMEs in Kenya, little information is available on the impact of some of the critical factors affecting enterprise development in Kenya. This study sought to determine the effect of the critical factors on enterprise development based on SMEs in the country. To do this, primary data was collected using structured questionnaires from the 2017 Top 100 mid-sized companies in Kenya listed by KPMG. Both descriptive and inferential statistics was used to analyze the data. The results of the study show that infrastructure, access to affordable capital and credit, fiscal policy alignment, interest rates, balance of payments, government debt, workforce development and export trade had a significant impact on enterprise development. The findings also outlined that there were strong correlations amongst the factors under study and a change in any one factor would lead to a snowballing effect resulting in a significant impact on enterprise development. Customizing policies with a strategic focus on some of the key factors identified in the study will significantly impact enterprise development. The study will also guide policy makers to understand implications on SMEs before making policy related decisions.