Intermediary Level Drivers and Sustainability of MSE’s in Kenya

Abstract

Medium-sized enterprises (MSEs) account for 90 percent of businesses operating in Kenya, contributing up to 60% of total employment and up to 40% of GDP in emerging economies. MSEs have more flexibility to quickly adapt and change to meet necessary environmental and social targets. Thus, with the right strategy, MSEs can offer both economic prosperity and environmental protection. It raises an important question: What drives MSEs to consider sustainability in their practices? The study conducted empirical research to establish the Influence of intermediary-level drivers on the sustainability of MSEs in Kenya. The study adopted a descriptive cross-sectional research design. The unit of analysis was the MSEs registered by KAM with standard regulations classified as MSE, which are distributed in the s economic regional blocs. A simple random sampling technique and a probabilistic sampling technique were used to select 298 respondents, forming the observation unit. The data collection instrument was a semi-structured questionnaire. Ordinary Least Square regression was used to analyze data. Before conducting the regression analysis, data was pretested to check for reliability using the internal consistency method, and construct validity was tested using the Bartlett Test of Sphericity and Kaiser Meyer Olkin test of sampling adequacy. The model fit was statistically significant. The study rejected the null hypothesis. In conclusion, Intermediary-Level Drivers play a crucial role in MSE sustainability. The study recommends that SMEs embrace digital transformation and social media marketing to nurture Intermediary-Level Drivers. Government and industry associations should offer training and resources to help MSEs develop digital marketing skills.