Enterprises In Kenya Research Articles

FACTORS AFFECTING ADOPTION OF DONOR FUNDED ICT PROJECTS IN THE PUBLIC SECTOR IN KENYA

Purpose : The purpose of this study was to establish the factors affecting adoption of donor funded ICT projects in the public sector. Methodology : The research was carried out through a descriptive survey research design which was used to assess the factors affecting adoption of donor funded ICT projects in the public sector. The sampling frame of this survey was a list of state owned enterprises in Nairobi County. The study targeted a population of all the 205 state owned enterprises in Kenya out of which 67 are located in Nairobi County. Results: The relationship between technological factor and adoption of donor funded ICT projects was positive and significant. The findings imply that technological factor has significant effect on adoption of donor funded ICT projects. The relationship between Infrastructural factor and adoption of donor funded ICT projects was positive and significant. Unique contribution to theory, practice and policy : It is recommended that culture has influence on the adoption of donor funded ICT project in public sectors. Therefore the organization cultures should focus on the short term, to expect quick results which influence ICT adoption.

Effect of Outsourcing Typologies on Organizational Performance of Small and Medium Enterprises in Kenya

Effect of Outsourcing Typologies on Organizational Performance of Small and Medium Enterprises in Kenya

Relationship Between Reorganization Turnaround Strategy And Performance Of Small And Medium Enterprises In Kenya

The main objective of this study was to determine the relationship between reorganization turnaround strategy and performance of small and medium enterprises in Kenya. The total target population was 8604. A total of 375 respondents were used as the sample size for the study. Descriptive survey design and correlational research design were used in this study. This study tested the null hypotheses that reorganization turnaround strategy has no relationship with the performance of SMEs in Kenya. The study found that there was positive and significant relationship between reorganization turnaround strategy and performance of SMEs. The study therefore recommended that SMEs' internal and external operations and changing the structure should be continuously evaluated to ensure that there is optimal benefit to SMEs performance.

Privatization of State-Owned Enterprises and its Effects on the Performance of the Kenyan Economy

This study examined privatization in Kenyan with reference to whether there existed relationships between privatisation of SOEs, criteria used to select SOEs for privatisation; management of SOEs and their performance in the Kenyan economy. The target population comprised of 275 employees of Kenya pipe line. Survey research design and simple random sampling were used in this study. The researchers used 30% of the target population to arrive at an accessible population of 75 employees as respondents for this study. Questionnaires were used for data collection. Data was analyzed using paired samples t-test with the help of SPSS and results were presented using Tables. Interpretation of results were based on α (.05), df, p value, t-values and t-critical. The findings of the study revealed that there were relationships between privatisation of SOEs, criteria used to select SOEs for privatisation, and management of SOEs and their performance on the Kenyan economy. The results were significant and out of this study, recommendations were made to the Kenyan government and state owned enterprises in Kenya.

The Role of Observability in Modern Automobile Technology among Mechanics Operating in Micro and Small Enterprises in Kenya

Micro and Small Enterprises in Kenya have restricted levels of technology, inappropriate technology and inadequate institutional capacity to support adaptation and absorption of modern technological skills. Technological inventions, innovations and developments in electronics, hydraulics and pneumatics have revolutionalized the automobile industry. In light of the these developments, the informal sector mechanics must be equipped with appropriate technical skills in order to have a competitive edge as far as servicing or repairing modern vehicles is concerned. This study aimed to determine factors that influence technology adoption among automobile mechanics in micro and small enterprises in Nakuru town; Kenya. The specific objective of the study was to establish the role of observability in the adoption of technology. The research used a descriptive cross sectional survey design and employed both probability and non-probability sampling techniques to collect quantitative and qualitative data. After a detailed binary logistic regression analysis using SPSS, the study found that, adoption of various modern motor vehicle technologies is influenced by; among other factors, perceived attitude of the mechanics in terms of observability of a particular innovation. The study recommended that the government should emphasize and invest in intellectual capital by way of developing relevant training curriculum for the mechanics based on industry and environmental needs. This study is significant as its findings, if implemented; can jump-start the informal mechanics towards achieving quality, competitiveness and both human and environmental safety.

The Role of Compatibility in Technology Adoption among Automobile Mechanics in Micro and Small Enterprises in Kenya

Micro and Small Enterprises (MSEs) are facing tremendous challenges and threats to survive in a competitive environment. As a matter of fact, MSEs are faced with the threat of failure with past statistics indicating that three out five fail within the first few months. In spite of this fact, automobile mechanics in this informal sector have been slow in adopting modern technology despite the advantages that are attributed to new innovations. This study aimed to determine factors that influence technology adoption among automobile mechanics in micro and small enterprises in Nakuru town; Kenya. One of the specific objectives of the study was to establish the role of compatibility in the adoption of technology. The research used a descriptive cross sectional survey design and employed both probability and non-probability sampling techniques to collect quantitative and qualitative data. Applying the Binary logistic regression analysis and using SPSS to analyze, the study found that, adoption of various modern automobile technologies are influenced; among other factors, the perceived attitude in terms of compatibility of a particular innovation. However, it was revealed that although a larger proportion of the innovations are compatible, adoption to the same is significantly quite low. The study recommended that the government should emphasize and create an innovation awareness system and invest in appropriate technology by way of developing relevant training curriculum for the mechanics based on industry and environmental needs. This study is significant as its findings, if implemented; can jump-start the informal mechanics towards achieving quality, competitiveness and both human and environmental safety.

The Social Factors that Influence Growth of Women owned Businesses in the Informal Sector in Kenya: A Case of Women Street Vendors in Bungoma town, Bungoma District

This study was set to investigate the social factors that influence the growth of the women owned Small Enterprises in Kenya, A case study of women roadside traders in Bungoma town, Bungoma West District. The specific objectives of the study were to identify these social factors and determine those that influence growth of these women owned roadside enterprises. The study also explained why these women chose to operate along roadsides and other open areas. The social factors included level of education, age bracket, family size and marital status, training and previous occupation of the women entrepreneurs. The factors investigated, some were deemed to stimulate growth while others inhibited the rates of growth of informal sector so much so that these enterprises do not break into the domain of small-medium and large enterprises sector usually referred to as the missing-middle. Studies done earlier also indicated that there is an influx of women entrepreneurs into the informal sector because of low yields and shrinking farm sizes. The research revealed that half of these women were married and had families and 84 percent of them had not been employed before, most of the women entrepreneurs had no training or previous skills in the business they were engaging in, 60 percent o f the women entrepreneurs were within the productive prime age of between 24 years to 45 years. The study therefore revealed that social factors have a diverse effect on the growth of the women owned informal enterprises.

Technological Innovation as entrepreneurial Determinant affecting Savings Mobilization among Micro and Small Enterprises in Kenya

The research study aimed at finding the effect of technological innovation on savings mobilization among MSEs in Trans Nzoia county Kenya. Studies from developed world have indicated that the use of technological innovations in savings mobilization improves performance of MSEs leading to better savings mobilized, also, MSEs with superior technological resource will have a competitive advantage leading to entrepreneurial growth of their MSEs and also enhances the efficiency of an enterprise and builds the confidence of entrepreneurs in discharging their responsibilities. The research used mixed research design to conduct the study among 339MSEs who are registered with KNCCI Trans Nzoia county. Stratified sampling was used to categorize MSEs into three strata’s namely service manufacturing and commerce or trade. Pilot study tested the instruments reliability and validity which met the threshold 0.70. Correlation among the technological innovation factors was found to be significant. The major findings of the study indicated technological innovation influences introduction of variety of new product and services offering to customers, drastically reduces the cost of savings mobilization and makes financial products and services appealing/attractive. The study concluded that financial institutions to consistently innovate new technologies of delivering their products and services The study also concludes that gender, level of education and number of dependants positively affects technological innovations which influences savings mobilization among MSEs. The study recommends that prior to the financial institutions introduction of technological innovations, they should create functional infrastructures to operate effectively.

Factors Affecting Automation of Inventory Management in Micro, Small and Medium Enterprises: A Case Study of Kitui County

Despite many challenges facing micro, small and medium enterprises in Kenya, they are yet to embrace full automation of inventories. Therefore the general purpose of this study was to assess factors affecting the automation of inventory management in micro, small and medium enterprises in Kenya. The study adopted descriptive research design. The target population for the study was 200 respondents. Therefore, census was conducted. The researchers used questionnaire to collect information from respondents. The collected data was analyzed using quantitative and qualitative techniques. The study found out that majority of employees in the micro, small and medium enterprises have inadequate information technology skills and hence has hindered the automation of inventories. Also, the study found out that financial accessibility is an obstacle in financing automation of inventories. The study recommended that micro, small and medium enterprises should train its workforce to equip them with information technology skills, and allocate more funds towards automation of inventory.

Influence of Strategic Planning on Growth of Women Owned Micro and Small Enterprises in Kibuye Market, Kisumu County - Kenya

Strategy content and process (strategic planning) is widely considered to be one of the factors that contribute to small firm’s growth. Studying strategic processes in Micro and Small Enterprises (MSE) therefore contributes to our understanding of the growth process which on the other hand bears broader economic relevance in terms of MSE’s being a major source of job creation. The study sought to establish the Influence of Strategic Planning on Growth of Women Owned Micro and Small Enterprises in Kenya. Specifically, the study sought to determine the influence of: Organizational envisioning, and strategic planning instruments on growth of Women owned Micro and Small Enterprises at Kibuye market kisumu county, Kenya. The study adopted a descriptive survey design. The target population included women owners/managers of enterprises at Kibuye market, Kisumu County, Kenya. Stratified random sampling technique was used to establish and access the study sample of 167 respondents of the targeted 295. Primary and secondary data was collected. Primary data was collected by structured questionnaires. Secondary data was collected from relevant government institutional documents and publications in referred journals. The collected data was edited, coded and entered into SPSS version 16.0 software for analysis. Data was analyzed using descriptive and inferential statistics. In particular, Regression Analysis was used to investigate the relationships between hypothesized variables. Analysis of Variance (ANOVA) was used to

Influence of Entrepreneurial Group Dynamics on the Performance of Women owned Enterprises in Kenya

This study sought to establish the influence of Entrepreneurial Group Dynamics on the Performance of Women Owned Enterprises in Kenya. The independent variable of the study was Entrepreneurial Group Dynamics and the dependent variable was Performance of Women Owned Enterprises. The study was conducted in the four (4) Sub Counties of Embu County. The study employed a Cross-Sectional Descriptive Research Design also known as statistical research and the population was sampled through stratified random sampling. Structured questionnaires and observation schedules were used to collect data. Data gathered was analyzed and presented using descriptive statistics, processed by Microsoft SPSS Version 20.0 and presented using graphs, pie charts, tables and percentages. The study reviewed literature on the dependent and the independent variables of the study. Results of this study indicated that; Entrepreneurial Group Dynamics had a positive relationship and played a major role on the Performance of Enterprises as evidenced by the increase in number of employees, sales volume and assets acquisition in the business. The need for the government agencies and other stakeholders to continuously partner and create an enabling environment in terms of policies that supports Entrepreneurial Group Dynamics so that their efforts continue to bear fruits within the Women Owned Enterprises was found ideal.

Influence of participation in “table banking” on the size of women-owned micro and small enterprises in Kenya

Purpose – The purpose of this study is to investigate the inability to access affordable credit in Kenya which hinders many women entrepreneurs from either starting their own or expanding existing enterprises and capital base. The emergence of table banking groups attempts to fill the existing credit gap. Design/methodology/approach – A cross-sectional survey involving 225 randomly selected women entrepreneurs who participate in table banking groups within Nakuru Municipality was conducted. Data collection comprised a questionnaire whose reliability coefficient was 0.83 at 0.05 confidence level. Findings – Results indicated that a majority women entrepreneurs aged between 20 and 60 years with 71 per cent of them married. Further, 44 per cent had attained secondary-level education, while no illiterate entrepreneurs participated in the study. A positive increase in the number of employees, after members participated in table banking groups, was realized. Credit received from table banking influenced changes in the size of enterprises. Originality/value – The study shows that availability, affordability and accessibility of credit from table banking groups led to positive growth of women-owned enterprises.

Dynamics of Entrepreneurial Orientation on the Performance of Women owned Enterprises in Kenya

This study sought to establish the influence of Entrepreneurial Orientation on the Performance of Women Owned Enterprises in Kenya. The independent variable of the study was Entrepreneurial Orientation and the dependent variable was Performance of Women Owned Enterprises. The study was conducted in the four (4) Sub Counties of Embu County. The study employed a Cross-Sectional Descriptive Research Design also known as statistical research and the population was sampled through stratified random sampling. Structured questionnaires and observation schedules were used to collect data. Data gathered was analyzed and presented using descriptive statistics, processed by Microsoft SPSS Version 20.0 and presented using graphs, pie charts, tables and percentages. The study reviewed literature on the dependent and the independent variables of the study Results of this study indicated that, Entrepreneurial Orientation had a positive relationship and played a major role on the Performance of Enterprises as evidenced by the increase in market share and cash flow stability in the business. The need for Continuous Learning among women entrepreneurs and creation of Conducive Business Environment was recommended to enhance Business Performance.

Effects of Information on Loan Access: A Case of Small and Medium Enterprises in Kenya

The purpose of this study was to evaluate whether in access to information affect small and medium enterprises (SMEs) in accessing loans from commercial banks in Meru County Municipality. The descriptive research design was used. The specific objective of the study was to determine the relationship between access to information and access to bank loan by SMEs. The target population consisted of 599 SMEs registered, licensed and operating within Meru County Municipality. A sample size of 60 SMEs was selected using stratified random sampling. Primary data was collected by use of administered questionnaires that were hand delivered to the respondents of the SMEs owners. Data collected was presented in frequency tables. The Pearson Chi-Square statistics measures the significance of the relationship between the variables while eta statistic measures the degree of the relationship. The SPSS version 21 statistical software was used to analyse the collected data. Pearson Chi –Square statistic was used to test research hypotheses and the significance of relationships between the variables of the study. Access to information was found to influence SMEs loan access from Commercial Banks by SME owners. Recommendations from the study were that the banks should adopt the relationship lending that has succeeded in other countries. The SME owners should be provided with adequate information by the banks and also they should also give the appropriate information to the banks which would enhance trust between the SME owners and the banks eliminating the fear of high business risk. The banks should provide tailor- made products for their different types of customers.

Factors Affecting Development of Business Plans by Small and Medium Enterprises in Kenya: A Survey of Commercial Rabbit Farmers in Thika District

The contribution of small and medium enterprises to global economy in general and the Kenyan economy in particular has been recognized and well documented. Given their importance, it is important that these enterprises be planned for so that possible challenges are anticipated, possible solutions are put in place and their overall contribution of these enterprises to the economy is increased. There is documented evidence that business planning enhances performance of an enterprise. There is also documented evidence that most enterprises, especially those classified as small and medium do not engage in business planning. They therefore, as individual businesses fail to reap the benefits of planning while the economy as a whole also suffers high mortality rates of start-ups, which are crucial for employment creation. In view of the above, this study aimed at assessing the factors that affect development of business plans by small and medium enterprises using a survey of rabbit farmers in Thika District. The specific objectives of this study were to look into the extent to which entrepreneurship skills, stakeholders’ requirements and entrepreneurs’ attitude impact development of business plans. It was anticipated that those who possess some business skills are in a better position to develop business plans; that those who have a close formal relationship with major stakeholders of their businesses are more likely to develop business plans; and that those with a positive attitude towards planning are more likely to develop business plans. This study adopted descriptive research design. The target population was all small and medium enterprises engaged in commercial rabbit farming. A sample of respondents was derived using a combination of cluster and simple random sampling techniques. A semi structured questionnaire was used as the main data collection tool. All the entrepreneurs interviewed had an idea of what a business plan is. The study found out that an overwhelming majority (90%) of the respondents were of the opinion that entrepreneurship skills affect development of business plans by SMEs. A majority (85%)

Equity Financing Strategy and the Performance of Small and Medium Enterprises in Kenya

The SMEs play an important role in economic growth and development in Kenya. However, in Kenya, SMEs are faced with survival problem. Their rate of failure is high and alarming. It is from this background that this study sought to investigate the cause of this failure by ascertaining the linkage between Equity Financing Strategy and the Performance of SMEs in Kakamega Municipality, Kenya. The Research Problem was formulated to answer the question; what are the Effects of Equity Financing Strategy on the Performance of SMEs? In so doing, the study ascertained causal linkage between Equity Financing Strategy, and the Performance; moderated by types of ownership and Sizes of Firms. To achieve desired results, this study employed a Descriptive Survey Research Design that employed a questionnaire with dichotomous questions to collect data from the respondents and made interviews with top management of the respective enterprises. This study was of significance to stake holders in financial sector, investors, business community, the government and the general public by: (1), providing a better understanding for designing lending policy, (2), providing a mechanism for regulating and controlling volume of credit to SMEs, (3), complementing the existing studies and contributing to knowledge on optimization of performance and (4), strengthening further research in this area. The study found evidence of strong correlation between Equity Financing Strategy and the Performance of SMEs. It also found that SMEs in Kakamega Municipality, Kenya were “financially starved”.

Tourism-conservation enterprises for community livelihoods and biodiversity conservation in Kenya

Tourism-conservation enterprises (TCEs), such as eco-lodges, are a relatively new strategy of the African Wildlife Foundation for enhancing community livelihoods and wildlife conservation in wildlife-rich areas outside state-protected areas in sub-Saharan Africa. This article investigates the extent to which TCEs succeed in meeting these objectives by focusing on two enterprises in Kenya: the Sanctuary at Ol Lentille and the Koija Starbeds. Empirical data were gathered between October 2010 and March 2013 through semi-structured interviews, focus group discussions, literature review and document analysis. Both TCEs demonstrated significant contributions to employment, education, healthcare and security. Compared with the Starbeds, the Sanctuary realised a much larger conservation area and more pronounced biodiversity recovery. The analysis showed that the contribution of TCEs to livelihoods and biodiversity conservation depends on the nature of the partnership arrangement, as well as the local, national and international contexts in which they operate.

The interactive nature of business development services in the relationship between external business environment and firm performance

This study focused on the interaction of business development services in the external business environment and firm performance relationship. The study adopted a cross sectional survey design on 800 small and medium manufacturing enterprises in Kenya. Data were collected using structured questionnaires from a sample of 150 enterprises and 64% responded. The instrument was tested for reliability using Cronbach’s approach while data was tested for normality and homoscedasticity before applying regression methods to test hypotheses. Principal component analysis was used to determine suitable predictor variable factors for regressions. The study established that external business environment has a significant positive but partial effect on performance and that business development services partially mediate this relationship. The study recommends that small and medium enterprises should embrace business development services practices to leverage the effect of external business environment on their performance. Key words: External, business, environment, services, mediation, small, medium, enterprises, performance

Performance of women owned enterprises accessing credit from village credit and savings associations in Kenya

In the recent years there has been an influx of women venturing in the field of entrepreneurship in developing countries. This is attributed to advocacy on women empowerment programs and policies. Women owned small micro enterprises in Sub-Saharan Africa continue to record poor performances compared to their male counterparts. The purpose of this study was set to investigate selected factors perceived to influence the performance of women-owned small micro enterprises in Kenya. The factors studied included credit and dividends accessed from table banking groups, entrepreneur’s experience, education levels of women entrepreneurs and income of women entrepreneurs. The study adopted cross-sectional survey design and a sample of 225 women entrepreneurs who participate in Village Saving and Credit Associations from Nakuru Town Kenya was used. The study found that all the women entrepreneurs had attained formal education with majority 43.6% having attained secondary education. Results also revealed that Ordinal logit regression model (OLR) had Pseudo R2 of 60.2% and 49.3% which was above the statistical threshold of 20%. This implied that the selected factors income, credit and education level of the respondents influenced positive changes in the net profits and capital of Small Micro Enterprises (SMEs). Based on the study findings, Village Saving and Credit Associations were identified as one of the effective strategy that can enable more women entrepreneurs in the rural and urban areas to access affordable credit.

Adoption of E-Business by Small and Medium Enterprises in Kenya: Barriers and Facilitators

The study looks into the internet-based electronic business adoption profile of small and medium-sized enterprises (SMEs) as well as the factors affecting their willingness to adopt ebusiness usage. The study adopted a literature review methodology where a wide spectrum of literature was interrogated. This methodology has its limitation in that there is need to empirically validate the findings through studies in different geographical regions and economic sectors. It is noted that e-business adoption is significantly influenced by its perceived benefits. The benefits are majorly financial. However, based on the literature reviewed, the main barriers to e-business adoption appear to be the unwillingness of managers to be responsible for technological change. Ignorance surrounding the technology is fuelling concerns about security, costs, legislation and interoperability. This paper is presented in the following order: introduction, problem statement, literature review, theoretical framework, methodology, findings, conclusion and recommendations.