Strategy Implementation Practices and the Performance of Small and Medium Enterprises in Kenya (original) (raw)
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2017
This paper investigates the effect of strategic management process on the performance of SME’s in Nairobi. Strategic management is a process of analyzing the current situation, developing suitable strategies, putting those strategies into action, and evaluating, modifying, or changing those strategies as required. This process is vital for the survival of any organizations. The major factors evaluated in the study were strategy formulation, strategy evaluation, environmental scanning and strategy implementation. Cross-sectional study design was used. Stratified and random sampling techniques were used to select 384 Small and Medium Enterprises located in Nairobi Central Business District. The findings indicated that strategy management process has a positive and significant effect on the performance of Small and Medium Enterprises albeit to a small extent. It’s thus important to train SMEs on the importance of strategy management process and to encourage the adoption of strategy man...
Operational Strategies and Performance of Small and Medium Enterprises in Nairobi City County, Kenya
International Journal of Business Management, Entrepreneurship and Innovation
The Kenyan Vision 2030 envisages a vibrant SME sector as one of the key sectors meant to make the economy industrialized by the year 2030. However, the SME sector has recorded poor performance in the past. Because most SMEs expand naturally and in accordance with the initial entrepreneur’s vision, many enterprises in this sector are run in a haphazard manner. Some organizations lack suitable structures and management processes, while in others, the original director is in charge of everything, from cash receipts, banking, and withdrawals, to more complex entrepreneurial responsibilities. Therefore, this study examined how operational strategies influence small and medium enterprises' performance in Nairobi City County, Kenya. The study specifically sought to examine the influence of supply chain strategy, product development strategy, process design strategy and customer focus strategy. The study was guided by Balance score card model, resource-based view theory, quality managem...
Interest in the role of small and medium-sized enterprises (SMEs) in the development process continues to be in the forefront of policy debates in developing countries. The role of finance, management skills, macro-environment factors and infrastructure have been viewed as a critical element for the performance of small and medium-sized enterprises. Therefore, this study sought to evaluate the factors affecting the performance of SMEs in the Jua Kali sector in Nakuru town. The study adopted a survey research design and employed a stratified random simple sampling. Primary data was collected from 262 study respondents using structured questionnaires.The data was analyzed descriptively and inferentially and presented through figures, tables and percentages. The findings indicate that; that access to finance had the potential to positively affect performance of SMEs; management skills were found to positively and significantly affect performance of SMEs; macro environment factors were found to significantly affect performance and Infrastructure did not significantly affect performance of SMEs in the study area. The study results also indicated that as number of years in operations increased the performance increased. The study recommends that banks should improve access to finance through offering f better lending terms and conditions and collateral requirements; focus on acquiring appropriate management skills such as financial, marketing and entrepreneurial skills and effectively strengthen the macro environment in order to increase their performance.
2018
The vision 2030 framework identifies small and medium enterprises sector as a major engine towards the achievement of middle income status in Kenya due to its role in creation of employment and economic growth. However, the framework is concerned on the high degree of business closure and shrinkage among these ventures. Kenyan small as well as medium sized ventures have a high failure rate with many of them failing within the first three years of operation. Generally, studies show that in Kenya, these ventures continue to have poor performance and face stiff competition from large firms. This dismal performance of small and medium enterprises could be attributed to approaches used by these businesses to counter obstacles which influence the quality of decisions and performance of enterprises given that individual enterprises were responsible for their survival. The purpose of this study was to determine the influence of strategic financial management on the performance of SMEs in Wa...
The Kenyan Small and Medium Enterprises (SMEs) sector is a very competitive environment, and they need strategic planning to remain competitive. Kenyan SMEs, which include agriculture and rural businesses, have contributed greatly to the growth of the economy, mainly in the creation of employment. Yet there have been high failure rates and poor performance levels. Many are faced with the threat of failure within the first few months. Many SMEs perform well after start up, but only a few experience sustained growth through the full lifecycle and become large firms. Lack of strategic planning may prevent them from achieving their potential, or even surviving. There is very little evidence however indicating whether SMEs in Kenya engage in strategic planning, and if they do how it impacts on their general performance. This study endeavours, through a literature review, to find out how strategic planning impacts their performance. The study established that the most successful businesses use strategic planning, and there is a high failure rate for those who do not. The recommendation is that the owner or entrepreneurs of the SME to be trained in the skills of strategic planning.
European Journal of Business and Management Research
The objective of the study was to investigate influence of emergent strategic management mode on performance (sales) of SMEs in Machakos Town, Machakos County. Descriptive research design was employed to ensure a complete description of the situation of SMEs performance in Machakos town. The target population was 16,399 licensed SMEs in Machakos Town.These SMEs where grouped into eight categories.Using stratified random sampling method,a sample of 390 respondents was selected from the target population.Data was collected using questionnaires design to obtain accurate information from respondents. Collected data was analyzed using both qualitative and quantitative techniques. Due to non-normality and non-homogeneity of the dependent variable,a non-parametric test (Mann-Whitney U test) was prefered instead of a parametric test (t-test).Under this test,the data was categorized into low users of each strategy and high users of each strategy. The findings were presented using tables, fi...
FACTORS DETERMINING THE PERFORMANCE AND GROWTH OF SMALL TO MEDIUM ENTERPRISES IN NAIROBI, KENYA
Musimwa, N., Miruka, C. and Pelser, T.G. 2013. Factors determining the performance and growth of small to medium enterprises in Nairobi, Kenya. Proceedings of the 7th International Business Conference, Victoria, Isle of Mahe, Seychelles, 2 – 3 September 2013.
In this exploratory study the authors looked at factors that determine the performance and growth of Small to Medium Enterprises (SMEs) in the city of Nairobi, Kenya. This research was important in the sense that there is need for targeted solutions if Small to Medium Enterprises (SMEs) are to be supported properly. Access to loans and re-investment of profits was a key determinant of the performance of SMEs in Kenya. According to the small business practitioners, the research showed that there are at least seven key determinants. The least important determinant, as the research showed was government. Less than 45% of respondents said growth of their small businesses was assisted by government. Coupled with this, over 80% of respondents said government policy and legislation actually hinder the progress of SMEs.
2017
Despite the vital role of SMEs in building a competitive private sector and contributing significantly to economic growth and job creation, SMEs are facing more challenges around the world in general and in developing countries in particular. The main objective of this study was to assess the strategic factors affecting growth of micro, small and medium enterprises in Bomet County. Data was collected using both open and closed ended questionnaires. In order to realize this purpose, this study adopted descriptive research employing the use of questionnaires, observation and interviews to collect data from a sample size of 52 SMEs in Bomet Central Business District which were selected using stratified random sampling. Data was subjected to coding for easier analysis. Data was then analyzed using descriptive statistics such as percentages, frequencies, figures and tables. The study found out that technology, access to finances, innovation and having a strategic plan all affect the grow...
2017
Development, growth and performance of SMEs are signs of economic growth in many countries. SMEs contributes to country's GDP, creates employments, useful in wealth distribution. The performance of SMEs largely depends on characteristic and behavioural factors exhibited by the entrepreneur. The objective of this study was to determine entrepreneurial factors influencing performance of SMEs in Ongata Rongai Town, Kajiado County, Kenya. In particular the study sought to examine the influence of commitment on performance of SMEs and to determine the influence of innovation on performance of SMEs. The target population was 372 licensed SMEs as per register records in Ongata Rongai Sub-County offices, sample frame comprised of list of registered SMEs in Ongata Rongai Sub-County office. The study adopted survey research design method, involving classification of SMEs into primary and secondary clusters followed by multistage samplings. The research instrument used was closed questionn...