Determinants of growth of small and medium manufacturing enterprises within industrial area, Nairobi county
Date
2022
Authors
Achola, Cynthia Atieno
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The purpose of this study was to investigate the determinants of growth of Small and Medium-Sized Enterprises within Industrial Area, Nairobi County. The study was based on a population of 77 respondents with the response rate being 92%. The study made use of structured questionnaires to collect primary data from the owners/managers of the SMEs being studied. Primary data was used since it is more accurate. The study established that access to finance, entrepreneurial competencies and age of the firm has a strong relation to the growth of SMEs. The findings revealed that all these factors are necessary to the growth of SMEs. The study concluded that easier access to finance enabled the owners/managers to conduct the operations of their businesses smoothly and efficiently. In addition to that, the study also concluded that entrepreneurial competencies such as adequate leadership skills, marketing skills, networking skills and creative and innovative skills had an impact on the growth of SMEs and such skills can be used as a source of competitive advantage. Moreover, the study also concluded that the age of the business is vital for its growth since as a business grows older, there is advancement in technology uses, accumulated knowledge on customer relationships and increased supplier channels which leads to increased profit margins hence there is growth in the business. The study recommended that financial institutions should develop better policies which make it easier for SME owners to access finances which lead to the growth of SMEs. One of the limitations of this study is that it only focused on three variables that affect the growth of SMEs while there are many more variables to be studied.
Description
A Research Project Submitted in partial fulfillment of the requirements for the Degree of Bachelor of Commerce (Finance) at Strathmore University
Keywords
Small and Medium-Sized Enterprises, Leadership Skills, Marketing Skills, Networking kills